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4.3. Structural Equation Modelling
4.3.1. Confirmatory Factor Analysis CFA
CFA for exogenous constructs
There were three independent variables used in this study and SEM analysis required them to be tested using CFA in order to check whether the
result showed a goodness of fit model or not. The result of the CFA was reported in table 4.5 below, using eight goodness of fit indices from chi-
square, significance probability, Root Mean Square Error of Approximation RMSEA, The Minimum Discrepancy Function Divided with degree of
Freedom CMINDF, Goodness of Fit Index GFI, Adjusted Goodness of Fit Index AGFI, Tucker Lewis Index TLI, and Comparative Fit Index
CFI. Looking at the scores in column three and by comparing them to their cut-off values in column two, it could be concluded that all criterias were
good as expected.
Table 4.5. Exogenous Construct Goodness of Fit Indices
Goodness of Fit Indices
Cut-Off Value Result
Model Evaluation
Chi-Square Expected to be low
29.10 Good
Significance Probability ≥ 0.05
0.26 Good
RMSEA ≤ 0.08
0.03 Good
CMINDF ≤ 2.00
1.16 Good
GFI ≥ 0.90
0.97 Good
AGFI ≥ 0.90
0.94 Good
TLI ≥ 0.90
0.99 Good
CFI ≥ 0.95
0.97 Good
Source: Primary Data, 2014
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CFA for endogenous constructs
Two endogenous constructs were used in this study, CBB as the intervening variable and borrowing habit as the dependent variable. As well
as the exonegous variables, both of the endogenous variables must also pass the CFA using the same eight criterias. The model evaluation in column four
of table 4.6 reported that the model was good. The conclusion came by comparing the result of analysis in column three to the cut-value of each
indicator in column two. Therefore both the first CFA and the second CFA resulted a conclusion that so far the model developed was good.
Table 4.6. Endogenous Construct Goodness of Fit Indices
Goodness of Fit Indices
Cut Off Value Result
Model Evaluation
Chi-Square Expected to be low
20.62 Good
Significance Probability ≥ 0.05
0.36 Good
RMSEA ≤ 0.08
0.02 Good
CMINDF ≤ 2.00
1.08 Good
GFI ≥ 0.90
0.97 Good
AGFI ≥ 0.90
0.95 Good
TLI ≥ 0.90
0.99 Good
CFI ≥ 0.95
0.99 Good
Source: Primary Data, 2014
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Figure 4.1. CFA of Exogenous Construct
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Figure 4.2. CFA of Endogenous Construct
4.3.2. Full Structural Equation Model Analysis
Kategori