MANUFACTURING AND CONTINUOUS IMPROVEMENT AREAS USING PARTIAL LEAST SQUARE PATH MODELING WITH MULTIPLE REGRESSION COMPARISON

Abstract

Structural equation modeling (SEM) has traditionally been deployed in areas of marketing, consumer satisfaction and preferences, human behavior, and recently in strategic planning. These areas are considered their niches; however, there is a remarkable tendency in empirical research studies that indicate a more diversified use of the technique.  This paper shows the application of structural equation modeling using partial least square (PLS-SEM), in areas of manufacturing, quality, continuous improvement, operational efficiency, and environmental responsibility in Mexico’s medium and large manufacturing plants, while using a small sample (n = 40).  The results obtained from the PLS-SEM model application mentioned, are highly positive, relevant, and statistically significant. Also shown in this paper, for purposes of validity, reliability, and statistical power confirmation of PLS-SEM, is a comparative analysis against multiple regression showing very similar results to those obtained by PLS-SEM.  This fact validates the use of PLS-SEM in areas of untraditional scientific research, and suggests and invites the use of the technique in diversified fields of the scientific research