Counterpoint: Representing Forged Concepts as Emergent Variables Using Composite-based Structural Equation Modeling

Xi Yu*, Ibtissam Zaza, Florian Schuberth, Jörg Henseler

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Studying and modeling theoretical concepts is a cornerstone activity in information systems (IS) research. Researchers have been familiar with one type of theoretical concept, namely behavioral concepts, which are assumed to exist in nature and measured by a set of observable variables. In this paper, we present a second type of theoretical concept, namely forged concepts, which are designed and assumed to emerge within their environment. While behavioral concepts are classically operationalized as latent variables, forged concepts are better specified as emergent variables. Additionally, we propose composite-based structural equation modeling (SEM) as a subtype of SEM that is eminently suitable to analyze models containing emergent variables. We shed light on the composite-based SEM steps: model specification, model identification, model estimation, and model assessment. Then, we present an illustrative example from the domain of IS research to demonstrate these four steps and show how modeling with emergent variables proceeds.
Original languageEnglish
Pages (from-to)114-130
Number of pages17
JournalData Base for Advances in Information Systems
Volume52
Issue numberSI
Early online date28 Dec 2021
DOIs
Publication statusE-pub ahead of print/First online - 28 Dec 2021

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