latent variable score

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Re: latent variable score

Post by Diogenes » Mon Nov 06, 2017 9:43 am

You are talking about higher order latent variable:
- If the first order LVs have about the same number of indicators, use the repeated indicators approach (see Wetzels et al., 2009, p.181)
- If the number of indicators are very different one of another, it is better to use de two step approach (see Wilson, & Henseler, 2007).

WETZELS, M. et al. Using PLS path modeling for assessing hierarchical construct models: guidelines and empirical illustration. MIS Quarterly, v.33, n.1, p.177-195, March 2009. [p.181]

Wilson, B., & Henseler, J. (2007). Modeling reflective higher-order constructs using three approaches with PLS path modeling: a Monte Carlo comparison. In Australian and New Zealand Marketing Academy (ANZMAC) Conference (pp. 791–800). Retrieved from

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Re: latent variable score

Post by jmbecker » Tue Nov 07, 2017 11:56 am

All constructs need indicators in PLS. Therefore you need to use approaches that try to identify the second-order constructs, which are usually either the repeated indicator approach or the two-stage approach.

You can find information on this issue in the following publications:
Becker, J.-M., K. Klein, and M. Wetzels (2012). Formative Hierarchical Latent Variable Models in PLS-SEM: Recommendations and Guidelines, Long Range Planning, 45 (5/6), 359-394.
Kuppelwieser, V., and M. Sarstedt (2014). Applying the Future Time Perspective Scale to Advertising Research, International Journal of Advertising, 33(1), 113-136.
Ringle, C. M., M. Sarstedt, and D. W. Straub (2012). A Critical Look at the Use of PLS-SEM in MIS Quarterly, MIS Quarterly, 36 (1), iii-xiv.
Hair, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. 2018. Advanced Issues in Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks, CA: Sage.
Dr. Jan-Michael Becker, University of Cologne, SmartPLS Developer
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