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

Marko Sarstedt, Joseph F. Hair, Jun-Hwa Cheah, Jan-Michael Becker and Christian Ringle

Australasian marketing journal, 2019, vol. 27, issue 3, 197-211

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.

Keywords: Hierarchical component models; Higher-order constructs; Partial least squares; Path modeling; PLS-SEM; Second-order constructs (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (256)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1441358219301223
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:aumajo:v:27:y:2019:i:3:p:197-211

DOI: 10.1016/j.ausmj.2019.05.003

Access Statistics for this article

Australasian marketing journal is currently edited by Roger Marshall

More articles in Australasian marketing journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().