Abstract
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 CB-SEM and PLS-PM.
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