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Hi,
I estimated my model with two second orders with two stage approach. My model only has reflective constructs. I stated that I used two stage approach because: “First, the number of indicators per lower order component should be balanced (Becker et al., 2012). Otherwise the estimated relationships between the higher and the lower order components may be biased. Second, researchers usually do not evaluate the higher order constructs, although the same evaluation criteria (and their critical values) used for the lower order components apply. Hence, information about relevant evaluation criteria outcomes is important and should be provided.
In such situations, a two-stage approach (Ringle et al., 2012) should be used, which allows for handling this technical limitation of the repeated indicator approach”. (Hair et al., 2013, p. 5).
Hair, J., Ringle, C. and Sarstedt, M. (2013), “Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance”, Long Range Planning, Vol. 46 No. ½,pp. 1-12.

Would it be okay?

Thank you!

Sorry I stated this saying hat repeated indicator approach has several pitfalls such as ....“First, the number of indicators per lower order component should be balanced (Becker et al., 2012). Otherwise the estimated relationships between the higher and the lower order components may be biased. Second, researchers usually do not evaluate the higher order constructs, although the same evaluation criteria (and their critical values) used for the lower order components apply. Hence, information about relevant evaluation criteria outcomes is important and should be provided. (…) In such situations, a two-stage approach (Ringle et al., 2012) should be used, which allows for handling this technical limitation of the repeated indicator approach”. (Hair et al., 2013, p. 5).
Hair, J., Ringle, C. and Sarstedt, M. (2013), “Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance”, Long Range Planning, Vol. 46 No. ½,pp. 1-12.

You may be interested in the chapter on higher-order constructs in the new book on advanced issues in PLS-SEM:
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. https://www.smartpls.com/documentation/advanced

Best
CR

Hi Dr Ringle,

I have four Reflective-Reflective constructs (three exogenous and 1 endogenous).Should I use repeated indicators approach or two-way approach to test the second order constructs?

Thanks in advance