Testing measurement invariance of composites using partial least squares

Jörg Henseler, Christian M. Ringle, Marko Sarstedt

Research output: Contribution to journalArticleAcademicpeer-review

249 Citations (Scopus)

Abstract

Purpose
Research on international marketing usually involves comparing different groups of respondents. When using structural equation modeling (SEM), group comparisons can be misleading unless researchers establish the invariance of their measures. While methods have been proposed to analyze measurement invariance in common factor models, research lacks an approach in respect of composite models. The purpose of this paper is to present a novel three-step procedure to analyze the measurement invariance of composite models (MICOM) when using variance-based SEM, such as partial least squares (PLS) path modeling.

Design/methodology/approach
A simulation study allows us to assess the suitability of the MICOM procedure to analyze the measurement invariance in PLS applications.

Findings
The MICOM procedure appropriately identifies no, partial, and full measurement invariance.

Research limitations/implications
The statistical power of the proposed tests requires further research, and researchers using the MICOM procedure should take potential type-II errors into account.

Originality/value
The research presents a novel procedure to assess the measurement invariance in the context of composite models. Researchers in international marketing and other disciplines need to conduct this kind of assessment before undertaking multigroup analyses. They can use MICOM procedure as a standard means to assess the measurement invariance.
Original languageEnglish
Pages (from-to)405-431
JournalInternational marketing review
Volume33
Issue number3
DOIs
Publication statusPublished - 2016

Fingerprint

Testing
Partial least squares
Measurement invariance
Structural equation modeling
International marketing
Invariance
Common factors
Design methodology
Simulation study
Type II error
Modeling
Statistical power

Keywords

  • METIS-310189
  • IR-95451
  • Methodology
  • Structural equation modelling
  • Measurement
  • Measurement invariance (MI)
  • partial least squares
  • MICOM
  • Multigroup
  • Variance-based SEM
  • Composite models
  • Permutation test
  • Path modelling

Cite this

Henseler, Jörg ; Ringle, Christian M. ; Sarstedt, Marko. / Testing measurement invariance of composites using partial least squares. In: International marketing review. 2016 ; Vol. 33, No. 3. pp. 405-431.
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Testing measurement invariance of composites using partial least squares. / Henseler, Jörg; Ringle, Christian M.; Sarstedt, Marko.

In: International marketing review, Vol. 33, No. 3, 2016, p. 405-431.

Research output: Contribution to journalArticleAcademicpeer-review

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AU - Henseler, Jörg

AU - Ringle, Christian M.

AU - Sarstedt, Marko

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AB - PurposeResearch on international marketing usually involves comparing different groups of respondents. When using structural equation modeling (SEM), group comparisons can be misleading unless researchers establish the invariance of their measures. While methods have been proposed to analyze measurement invariance in common factor models, research lacks an approach in respect of composite models. The purpose of this paper is to present a novel three-step procedure to analyze the measurement invariance of composite models (MICOM) when using variance-based SEM, such as partial least squares (PLS) path modeling. Design/methodology/approachA simulation study allows us to assess the suitability of the MICOM procedure to analyze the measurement invariance in PLS applications.FindingsThe MICOM procedure appropriately identifies no, partial, and full measurement invariance.Research limitations/implicationsThe statistical power of the proposed tests requires further research, and researchers using the MICOM procedure should take potential type-II errors into account.Originality/valueThe research presents a novel procedure to assess the measurement invariance in the context of composite models. Researchers in international marketing and other disciplines need to conduct this kind of assessment before undertaking multigroup analyses. They can use MICOM procedure as a standard means to assess the measurement invariance.

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