Using Structural Equation Modeling to Test the Validity of Interactive Management
21 Pages Posted: 29 Mar 2010 Last revised: 21 Apr 2010
Date Written: April 19, 2010
Interactive Management (IM; Warfield & Cárdenas, 1994) is one of group decision-making methods that apply to the management of complexity. Its products are called interpretive structural models. The IM results have been proved effective for solving complicated problems and reaching consensus with high satisfaction. However, the accuracy of IM results cannot be proved by the method itself and the weight between factors cannot identify, either. Structural Equation Modeling (SEM) can be used to test the hypotheses of causality among a set of variables so that SEM can examine the model fit of IM results. This study used SEM to test the IM model in order to explore the validity of IM and to compare the models which result from IM and SEM separately. The results show that the IM procedure basically meets the requirement of SEM validity and the opinions of non-IM participants. This implies that IM is a reliable and effective tool for public decision-making. SEM shall provide weight between factors to supplement IM results failing to provide. And SEM can be utilized as a measurement tool for the performance of the IM. The comparison and integration of quantitative SEM and qualitative IM will offer new vision of group decision-making.
Keywords: group decision-making, Interactive Management, IM, interpretive structural model, Structural Equation Modeling, SEM
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