A Structural Equation Modelling for Digital Commerce Readiness, Adoption, and Perceived Challenges among Gen Y Consumers

Abstract

Purpose: This paper documents and validates a complete, reproducible structural equation modelling (SEM) for studying the relationships among Digital Commerce Readiness (DCR), Digital Commerce Adoption (ADP), and Perceived Challenges (CH), using a 450-case dataset for SEM practice. Design/methodology: A three-factor reflective measurement model (six indicators per construct, 5-point Likert scale) was specified and estimated with maximum-likelihood SEM, preceded by descriptive statistics, reliability analysis, stratified-sampling demonstration, and classical inferential tests (t-test, ANOVA, chi-square, multiple regression) with multiple-testing correction. Findings: The measurement model showed strong internal consistency (Cronbach's α = .89–.93) and excellent global fit (CFI = .996, TLI = .996, RMSEA = .017). The structural model indicated a strong positive standardized path from DCR to ADP (β = .645, p<.001) and a moderate negative path from CH to ADP (β = −.321, p<.001), jointly explaining 40% of adoption variance in a parallel OLS specification. A two-group comparison by gender showed the same sign and comparable magnitude for both paths. Originality/value: Limitations and appropriate scope of inference are discussed in detail.