A REVIEW OF STRUCTURAL EQUATION MODELING SAMPLE SIZE IN SUPPLY CHAIN MANAGEMENT DISCIPLINE

Nguyen Khanh Hung, Nguyen Van Thoan

Abstract

Abstract:
Determining sample size requirements for structural equation modeling (SEM) is a
challenge often faced by investigators, peer reviewers, and grant writers. One study found
that 80 per cent of the research articles in a particular stream of SEM literature drew
conclusions from insufficient samples. This paper aims to suggest substantive applications
of techniques verifying adequate sample size needed to produce trustworthy result when
researchers conduct structural equation modeling technique in supply chain management
(SCM) discipline. The paper reviewed a set of 42 empirical research articles in supply
chain management research with respect to the application of structural equation modeling,
choice of its sample size, conducted modern techniques and related factors affecting the
decision. It is concluded that most of the studies achieve widely accepted rules of thumb
with sufficient observations in sample size. However, there is no considerable attention
paid to important influenced factors and very few studies take notice of modern sample
size estimation technique such as statistical power analysis. Based on the critical analysis,
recommendations are offered.
Keywords: sample size, structural equation modeling, supply chain management