How to specify, estimate, and validate higher-order constructs in PLS-SEM

Higher-order constructs, which facilitate modeling a construct on a more abstract higher-level dimension and its more concrete lower-order subdimensions, have become an increasingly visible trend in applications of partial least squares structural equation modeling (PLS-SEM). Unfortunately, research...

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Main Authors: Sarstedt, Marko, Hair, Joseph F., Cheah, Jun Hwa, Becker, Jan Michael, Ringle, Christian M.
Format: Article
Language:English
Published: Elsevier 2019
Online Access:http://psasir.upm.edu.my/id/eprint/80089/1/How%20to%20specify%2C%20estimate%2C%20and%20validate%20higher-order%20constructs%20in%20PLS-SEM.pdf
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author Sarstedt, Marko
Hair, Joseph F.
Cheah, Jun Hwa
Becker, Jan Michael
Ringle, Christian M.
author_facet Sarstedt, Marko
Hair, Joseph F.
Cheah, Jun Hwa
Becker, Jan Michael
Ringle, Christian M.
author_sort Sarstedt, Marko
collection UPM
description Higher-order constructs, which facilitate modeling a construct on a more abstract higher-level dimension and its more concrete lower-order subdimensions, have become an increasingly visible trend in applications of partial least squares structural equation modeling (PLS-SEM). Unfortunately, researchers frequently confuse the specification, estimation, and validation of higher-order constructs, for example, when it comes to assessing their reliability and validity. Addressing this concern, this paper explains how to evaluate the results of higher-order constructs in PLS-SEM using the repeated indicators and the two-stage approaches, which feature prominently in applied social sciences research. Focusing on the reflective-reflective and reflective-formative types of higher-order constructs, we use the well-known corporate reputation model example to illustrate their specification, estimation, and validation. Thereby, we provide the guidance that scholars, marketing researchers, and practitioners need when using higher-order constructs in their studies.
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spelling upm.eprints-800892020-09-21T08:22:07Z http://psasir.upm.edu.my/id/eprint/80089/ How to specify, estimate, and validate higher-order constructs in PLS-SEM Sarstedt, Marko Hair, Joseph F. Cheah, Jun Hwa Becker, Jan Michael Ringle, Christian M. Higher-order constructs, which facilitate modeling a construct on a more abstract higher-level dimension and its more concrete lower-order subdimensions, have become an increasingly visible trend in applications of partial least squares structural equation modeling (PLS-SEM). Unfortunately, researchers frequently confuse the specification, estimation, and validation of higher-order constructs, for example, when it comes to assessing their reliability and validity. Addressing this concern, this paper explains how to evaluate the results of higher-order constructs in PLS-SEM using the repeated indicators and the two-stage approaches, which feature prominently in applied social sciences research. Focusing on the reflective-reflective and reflective-formative types of higher-order constructs, we use the well-known corporate reputation model example to illustrate their specification, estimation, and validation. Thereby, we provide the guidance that scholars, marketing researchers, and practitioners need when using higher-order constructs in their studies. Elsevier 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/80089/1/How%20to%20specify%2C%20estimate%2C%20and%20validate%20higher-order%20constructs%20in%20PLS-SEM.pdf Sarstedt, Marko and Hair, Joseph F. and Cheah, Jun Hwa and Becker, Jan Michael and Ringle, Christian M. (2019) How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27 (3). pp. 197-211. ISSN 1441-3582; ESSN: 1839-3349 http://www.sciencedirect.com/science/article/pii/S1441358219301223 10.1016/j.ausmj.2019.05.003
spellingShingle Sarstedt, Marko
Hair, Joseph F.
Cheah, Jun Hwa
Becker, Jan Michael
Ringle, Christian M.
How to specify, estimate, and validate higher-order constructs in PLS-SEM
title How to specify, estimate, and validate higher-order constructs in PLS-SEM
title_full How to specify, estimate, and validate higher-order constructs in PLS-SEM
title_fullStr How to specify, estimate, and validate higher-order constructs in PLS-SEM
title_full_unstemmed How to specify, estimate, and validate higher-order constructs in PLS-SEM
title_short How to specify, estimate, and validate higher-order constructs in PLS-SEM
title_sort how to specify estimate and validate higher order constructs in pls sem
url http://psasir.upm.edu.my/id/eprint/80089/1/How%20to%20specify%2C%20estimate%2C%20and%20validate%20higher-order%20constructs%20in%20PLS-SEM.pdf
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