Second ordre construct

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PLS Junior User
Posts: 2
Joined: Tue Feb 21, 2017 2:33 am
Real name and title: Younès El Manzani

Second ordre construct

Post by elmanzani » Sun Apr 08, 2018 4:04 pm


I have a model with a Formative second-order construct formed by two LCs, the first is reflective while the second is formative. My questions are :

1) Can a formative second-order construct be established with a reflective and formative LCs?

If Yes :

2) Should use repeated or two-stage approach?
3) Which Mode (A OR B) should be used to estimate the formative second-order construct?

Another question :

When I run Pls Algorithm for a formative construct with two indicators, the outer loading of one indicator is 1.00. Is that normal ? what does that mean?

Thank you

SmartPLS Developer
Posts: 820
Joined: Tue Mar 28, 2006 11:09 am
Real name and title: Dr. Jan-Michael Becker

Re: Second ordre construct

Post by jmbecker » Fri Apr 13, 2018 9:32 am

1) Generally yes. I think it is not well covered in the literature, but it is possible and also conceptually plausible.

2+3) In such a situation I would prefer the two-stage approach, because you exactly have the problem that it is hard to decide which Mode to use at the higher-order constructs (i.e., Mode A or Mode B).
For the second-stage variable it would be straightforward as it is formative is should by default get Mode B (if not other reasons like extreme multi-collinearity suggest a different procedure).

Other question:
An outer loading of 1 is certainly unusual if you have two or more indicators. As the loadings are bivariate correlations between construct and indicator, it means that the construct is equal to the indicator. You have perfect correlation.
Dr. Jan-Michael Becker, University of Cologne, SmartPLS Developer
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