Issues in applied structural equation modeling research

When using the popular structural equation modeling (SEM) methodology, the issues of sample size, method of parameter estimation, assessment of model fit, and capitalization on chance are of great importance in the process of evaluating the results of an empirical study. We focus first on implications of the large‐sample theory underlying applications of the methodology. The utility for applied contexts of the asymptotically distribution‐free parameter estimation and model testing method is discussed next. We then argue for wider use of a recently developed, non conventional model‐fit assessment strategy in SEM. We conclude by discussing the issue of capitalization on chance, primarily in situations in which exploratory and confirmatory analyses are conducted on the same data set.