Abstract
Structural equation modeling (SEM) is a set of statistical techniques that allows testing a model that is built between one or more endogenous variables with one or more exogenous variables, where each endogenous and exogenous variable can be in the form of latent or a construct built from several variables of manifest or indicator. There is Structural Equation Modeling (SEM) based on covariance and variance, known as Partial Least Square (PLS), SEM-PLS is a powerful and flexible analysis method. This research discusses about the application of SEM-PLS in the field of managerial accounting system, namely the application of non-financial performance’s role that delivers the sustainability of the company's financial performance. Based on the results obtained, it can be concluded that partial least squares can be used to model finance business partnering, and it is known that employee performance and internal process performance contribute to achieve the firm’s financial performance.
Highlights
Structural equation modeling (SEM) is a set of statistical techniques that allows testing a model that is built between one or more endogenous variables with one or more exogenous variables, where each endogenous and exogenous variable can be in the form of latent or a construct built from several variables of manifest or indicator
2) If the relationship between the level of finance business partnering and the target firm’s financial performance in terms of product, satisfaction and service is mediated by employee’s performance. 3) if the relationship between the level of finance business partnering and the target firm’s financial performance is mediated by internal process performance. 4) if the relationship between the level of finance business partnering and the target firm’s financial performance is mediated by internal process performance is mediated by market performance. 5) if there is a significant relationship between internal process performance and firm’s financial performance. 6) if there is a significant relationship between internal process performance and firm’s financial performance. 7) if there is a significant relationship between market performance and firm’s financial performance
Based on the results obtained, it can be concluded that partial least squares can be used to model finance business partnering
Summary
Structural equation modeling (SEM) is a set of statistical techniques that allows testing a model that is built between one or more endogenous variables with one or more exogenous variables, where each endogenous and exogenous variable can be in the form of latent or a construct built from several variables of manifest or indicator. The Structural Equation Model (SEM) examines the structure of the reciprocal relationship expressed in a series of equations, similar to a series of multiple regression equations. This equation describes all of the relationships between the constructs (dependent and independent variables) involved in the analysis. SEM-PLS is a powerful and flexible analysis method because of its nature that can be used for various data measurement scales (nominal, ordinal, interval, and ratio), can be used for small sample sizes, and does not require a normal multivariate distribution [2]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
