What an indirect effect is
An indirect effect in structural equation modelling is the effect of one variable on another through a mediating variable. It is calculated as the product of the two component path coefficients. In the Value Chain, the indirect effect from Resources to Outcomes equals the path from Resources to Drivers (0.752) multiplied by the path from Drivers to Outcomes (0.818) — yielding 0.615.
The size of the indirect effect is what makes the structural pathway claim credible. A small indirect effect would suggest the mediation story is weak; a large indirect effect (like 0.615) supports it.
Why this matters
The finding matters for two reasons. Theoretically, it validates the claim that RevOps is an integrative device — its value lies in the integration mechanisms it produces, not in direct outcome production. This distinguishes RevOps from functions whose value is direct (sales producing revenue, marketing producing pipeline).
Practically, it means investing in Resources without strengthening Drivers produces weak Outcomes. Implementations that buy more tools without improving alignment, integration, and collaboration see limited business impact — explaining the common pattern of well-resourced RevOps teams that nevertheless underdeliver on outcomes.
How to use the finding
Three actions follow from the indirect-effect finding. First, evaluate Resources investments by their downstream impact on Drivers, not by their direct outcome attribution. Second, instrument Drivers directly to verify that Resources investments are improving them. Third, communicate the structural pathway in investment cases — 'this investment improves Drivers, which improve Outcomes' is more credible and accurate than 'this investment improves Outcomes directly'.