After running some analysis, a (predictor) strategy variable in my model is (unexpectedly) categorical. I now have four categories of strategy. I need to determine the relationship between these four strategies and three latent capability variables (ranging from 3-9 indicators). The intention is to see if each strategy has a different relationship with each of the three latent variables (both individually and collectively). Additionally, I had planned to run an SEM model using AMOS to test the overall model, which in basic format is strategy (four categories) --> capability (three latent variables) --> performance (four latent variables).

I am having trouble determining how to manage these strategic categories. I've coded them into three dummy variables, but am confusesed as to

• How to statistically test their relationship to latent variables and
• Whether(and how) I can incorporate them into a SEM model.
  
  

Any help would be much appreciated!