Second Order vs. Interaction Terms

[Pat79]

Hello everyone,

this is probably a question for the experts among you, hope there are some in this forum :-).

I just want to clarify when to use a second-order construct and when to use an interaction term approach. To give you more insight a very precise description first, followed by the questions!

I want to test the impact of an organisational concept consisting of 3 subelements: Separation, Integration and Balance. The subelements have further dimensions so I modeled them as First-Order Constructs of which 2 are formative and 1 is reflective. To measure the impact of the organisational concept, all of the 3 elements have to implemented contemporarily.

In my current model, I therefore created a reflective 2-Order Construct for the organisational concept because so its LV depends on the LV of all the 3 subelements. Now I doubt my approach as maybe an interaction term is required to measure the organisational concept and its impact.

So here my questions:

1) What is right approach Second Order Construct or Interaction?
2) If Interaction, how to make an interaction term of 3 constructs that in addition are formulated in different modes (2 reflective, 1 formative).

Need really your help to move on!!! Thanks a lot

Patrick

[Hengkov]

Hi,

Used two-stage approach.

Regards,

[bwilson]

Hi,

Used two-stage approach.

Regards,

See The Handbook of Partial Least Squares.
http://link.springer.com/book/10.1007/9 ... 7-8/page/1
Chapter 27. Using PLS to Investigate Interaction Effects Between
Higher Order Branding Constructs.
Best regards,
BradleyWilson