The literature on structural equation models is unclear on whether and when multicollinearity may pose problems in theory testing (Type II errors). Two Monte Carlo simulation experiments show that multicollinearity can cause problems under certain conditions, specifically: (1) when...

Assessing the applicability of frameworks developed in one country to other countries is an important step in establishing the generalizability of consumer behavior theories. In order for such comparisons to be meaningful, however, the instruments used to measure the theoretical constructs of...