In addition, the SEM holds the capability to test models with multiple dependent variables. It also holds the capability to model mediators and residuals.
It is essential to consider here that since the model and data have been given prior to the assignment, only model testing, results and interpretation shall seek the attention of performance here. The data therefore shall be put in the Amos software and the model shall be tested to obtain the results. The results obtained can be utilized for the modification of the model. However, it is essential to consider here that a change can result in a change in model's meaning. It is therefore essential to consider whether or not the changes hold consistency with the theory. If the results reveal the need for change in the model then it should be done. However, since theory was not provided for the practical assignment, the changes should be performed in the light of cautious steps.
The essential task is to find out as to what extent does the independent variable (reputation, skill, information exchange, power and flexibility) predict trust (independent variable). In addition, it is also required to find whether or not trust is a mediator to long-term orientation.
It is important to note that all the variables have been presented in an oral shape in the figure above. The oral shape on the variables represents the fact that they are latent variables. ...