Corporate strategy and environment: Study based on structural equation modeling

Abstract

This paper first analyzes the defect in application of traditional statistical methods to the enterprise strategy in conjunction with their character, and proposes, instead of them, the use of structural equation modeling in the strategic decision making. By comparison, it gets an advantage over traditional statistical approaches like the regression analysis and the factor analysis in many aspects in strategic decision-making analyses. Subsequently, it introduces the theory on the model in detail and highlights some pertinent problems to its application and gives some relevant suggestion. Finally, it illustrates the concrete application through exemplification, through step-by-step analysis of an example, shows how concretely to put it into practice.