Latent variable (two-way) connection?

[shakashaka]

Hi there,

Is it possible and how would it be possible to connect two latent variables in both directions? from my theory it seems that lv 5 and 6 (look at the picture bellow) have positive effect on each other and I would like to know if it's true in my scenario.



What I thought to do is this:



although I am not sure if this would be the correct way to do this to test my hypothesis..

[janschreier]

Such relationsships cannot be modeled with PLS according to page 16 of Hair, J.F., Hult, G.T.M., Ringle, C.M., Sarstedt, M., 2014. A Primer on Partial Least Squares Structural Equation Modeling. Sage, Los Angeles.
PLS can only work recursive models (that don't have causal loops or circular relationsships).
You can use CB-SEM (e .g. AMOS) for such cases. Working with dummies as you propose is probably a bad idea. A suggestion I heard (sorry, no official quote) is to work with two parallel models. model 1 with an arrow from construct 5 to 6 and for models 2 the arrow from 6 to 5.