endogenous formative construct

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Andrea21
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endogenous formative construct

Post by Andrea21 »

Hello everyone,

I am developing a PLS-Model and I do have one question concerning the endogenous latent variable:

Is it possible to analyse a PLS-Model with a formative endogenous variable?

I am not quiete sure, because I have never seen an analysis with a formative endogenous variable.

Thanks for your help!

Andrea
Sarste01
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Post by Sarste01 »

Dear Andrea,

Using formatively measured endogenous latent variables is not an issue in PLS. However, from a conceptual standpoint, this type of approach is not without problems (cite from Diamantopoulos/Riefler/Roth: "Advancing Formative Measurement Models," JBR 2008:

"Concerning future research, one major issue concerns the conceptual plausibility of formatively-measured constructs occupying endogenous positions in structural models. While a number of studies incorporate formative latent variables in such positions (e.g., Edwards, 2001; Jarvis et al., 2003; MacKenzie et al., 2005), Wiley (2005, p. 124, emphasis in original) notes that there is “no mechanism by which an antecedent variable can influence a formative index”. Since the set of causal indicators and the disturbance term jointly account for the total variation of a formatively-measured construct, the specification of an additional source of variation (i.e., an antecedent con- struct) is conceptually questionable. Given the conceptual and practical importance of this issue, a debate on the use of formatively-measured constructs as endogenous variables is urgently required."

I recently found the following manuscript but haven't had a chanc to take a closer look at it yet: http://www.research-training.com/index_ ... T_2010.pdf

Best
Marko
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