Abstract:
The main goal of this research is to assess the efficiency of Structural Equation
Modeling (SEM) and Normal Practice methods. This is because SEM is said to
have a better estimation and prediction when multiple response items were
involved in constructs. The efficiency of both methods was compared by using
Absolute, Incremental and Parsimonious fitness indexes computed by AMOS
graphic software. From the result of this research, it is found that SEM method
achieved all fitness indexes required level while Normal Practice method failed
to achieve Absolute and Parsimonious fit. As a conclusion, SEM method is
proven to be more efficient in making estimation and prediction than the Normal
Practice method.
