The article discusses how structural equation modeling can be used by researchers to test and develop theories. It introduces a two-step modeling approach that involves comparing different models and using statistical tests. This approach is shown to be more effective than a one-step method. The article also covers how to assess the fit of models and make adjustments using confirmatory factor analysis. It explains the difference between exploratory and confirmatory analysis, as well as theory testing versus predictive applications. The article also touches on new estimation methods in the field.