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i have a higher order model, 7 latent variable namely Kanban, SMED, JIT, TPM, 5S, Kaizen and VSM. all these connect to a second order latent variable named "lean tool adoption level".

just wondering if i can just make a simple by get the mean of first order latent variable" Kanban, SMED, JIT, TPM, 5S, Kaizen and VSM" and make it become indicator of "Lean tool adoption level"(latent variable) to form a simple PLS-SEM model? as attached

Hi

You could run a factor analysis for each lower order construct. If the reliability is high (e.g., Cronbach's alpha > 0.8), this approach may work.

Alternatively, you can use the repeated indictor approach or 2-stage approach in PLS-SEM to analyze second-order models. You find a chapter on this topic in the advanced PLS-SEM book: https://www.smartpls.com/documentation/ ... sem-issues

Best regards
Christian