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Australasian Marketing Journal (AMJ)· 2019Q1

How to Specify, Estimate, and Validate Higher-Order Constructs in PLS-SEM

Marko Sarstedt, Joseph F. Hair, Jun‐Hwa Cheah, Jan-Michael Becker et al.

Short summary

This paper clarifies the often-confused specification, estimation, and validation of higher-order constructs in PLS-SEM, offering guidance for researchers and practitioners.

AI-generated from the title and abstract; the full text is not read.

Key points

  • Addresses common confusion in specifying, estimating, and validating higher-order constructs in PLS-SEM.
  • Explains evaluation methods using repeated indicators and two-stage approaches.
  • Focuses on reflective-reflective and reflective-formative higher-order construct types.
  • Illustrates concepts with a corporate reputation model example.

AI-generated from the title and abstract; the full text is not read.

Abstract

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.

The authors' abstract, as published at the source. Australasian Marketing Journal (AMJ), 2019 · DOI ↗

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Field: Organizational Behavior and Human Resource Management

Organizational Behavior and Human Resource ManagementBusiness, Management and Accounting