The Development of Comparative Bias Index

Structural Equation Modeling (SEM) is a second generation statistical analysis techniques developed for analyzing the inter-relationships among multiple variables in a model simultaneously. There are two most common used methods in SEM namely Covariance-Based Structural Equation Modeling (CB-SEM) and Partial Least Square Path Modeling (PLS-PM). There have been continuous debates among researchers in the use of PLS-PM over CB-SEM. While there is few studies were conducted to test the performance of CB-SEM and PLS-PM bias in estimating simulation data. This study intends to patch this problem by a) developing the Comparative Bias Index and b) testing the performance of CB-SEM and PLS-PM using developed index. Based on balanced experimental design, two multivariate normal simulation data with of distinct specifications of size 50, 100, 200 and 500 are generated and analyzed using CBSEM and PLS-PM.