Modeling Reflective Higher-Order Constructs using Three Approaches with PLS Path Modeling: A Monte Carlo Comparison

Bradley Wilson, Jörg Henseler

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

2053 Downloads (Pure)


Many studies in the social sciences are increasingly modeling higher-order constructs. PLS can be used to investigate models at a higher level of abstraction (Lohmöller, 1989). It is often chosen due to its’ ability to estimate complex models (Chin, 1998). The primary goal of this paper is to demonstrate the relative robustness of various item and construct characteristics on the reproduction of parameter true scores when utilising the two-stage, hierarchical components indicators (repeated indicators) and a newer hybrid technique (where indicators are not repeated). Our Monte Carlo study mirrors a simple substantive branding example. We vary pertinent dimensions such as: sample size, differing item reliabilities and inner weighting schemes. Our contribution is twofold. Firstly, we provide an overview of the approaches to model reflective second-order constructs with PLS. Secondly, based on our simulation, we provide suggestions when to use each approach.
Original languageEnglish
Title of host publicationANZMAC 2007
Subtitle of host publicationconference proceedings and refereed papers
EditorsMaree Thyne, Kenneth R. Deans
Place of PublicationDunedin
ISBN (Print)9781877156299
Publication statusPublished - 2007
Externally publishedYes
EventAustralia-New Zealand Marketing Academy Conference, ANZMAC 2007: Reputation, Responsibility, Relevance - Dunedin, New Zealand
Duration: 3 Dec 20075 Dec 2007


ConferenceAustralia-New Zealand Marketing Academy Conference, ANZMAC 2007
Country/TerritoryNew Zealand


Dive into the research topics of 'Modeling Reflective Higher-Order Constructs using Three Approaches with PLS Path Modeling: A Monte Carlo Comparison'. Together they form a unique fingerprint.

Cite this