A Comparative Study Using Two SEM Techniques on Different Samples Sizes for Determining Factors of Older Employee’s Motivation and Satisfaction

Abstract

The purpose of this article is to present the relationships among older employee stress, motivation, satisfaction, and relationships in the workplace using two different approaches and different sample sizes. Research was implemented on an initial sample of 1013 older employees. In the next step, six smaller samples were calculated using the random selection of cases, namely samples with 25, 50, 100, 250, 400, and 500 older employees. This way the possible impact of sample size on relationships between latent variables using the covariance-based structural equation modeling (CB-SEM) and the partial least squares structural equation modeling (PLS-SEM) methods was assessed. The results on the larger samples have proved to be quite robust since they were confirmed with both approaches. They indicate that stress has a strong and negative impact on employee relationships and also a negative impact on employee satisfaction. Furthermore, employee relationships have a strong and positive impact on satisfaction and a positive impact on employee motivation. In addition, satisfaction has a strong and positive impact on employee motivation. The present paper helps readers to better understand the difference between the CB-SEM and the PLS-SEM methods. Researchers should be encouraged to use both techniques, even though CB-SEM methods have had a long tradition in management and marketing research since both fields heavily rely on psychometric measurement. From the organizational point of view, conclusions highlight the importance of the impact the variables of older employee stress, motivation, satisfaction and employee relations have on each other in the workplace.