How can I find lambda for 2nd order factor??

Questions about the implementation and application of the PLS-SEM method, that are not related to the usage of the SmartPLS software.
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s043077
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How can I find lambda for 2nd order factor??

Post by s043077 »

Dear all,

I have two questions about 2nd order factors.

First, there have three 1st order factors and one 2nd order factor in my research model. All of the 1st order factors are reflective constructs. And the 2nd order is formative construct. I use the repeat indicators approach to perform my research model. But I couldn’t understand how to use the repeat indicators approach correctly.

Approach A          Approach B
indicators ← 1st → 2nd    indicators ← 1st → 2nd
           ↑                ↓
          repeat             repeat
         indicators            indicators

Which approach is correct?

Second, in the repeat indicator approach, I can get lambda of 1st order factors, but the path coefficient between 1st order factors and 2nd factor should be gamma, how can I find lambda for 2nd order factor??

Thank you very much for your help.

Jerry
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Diogenes
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Post by Diogenes »

Hi Jerry

1st) The B approach is the correct, see viewtopic.php?t=660&highlight=repeated+indicator (WOLD, 1982, p.40-42).

2nd) The coefficients between 1st and 2nd order LVs should be interpreted and used as lambdas when we have reflective 2nd order LV(see viewtopic.php?t=640), but in your case (formative 2nd order LV) this coefficients are like weights in a multiple regression.

Best regards.
Bido
s043077
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Post by s043077 »

Dear Professor

Thanks for your reply.

According to yours and others suggestions, I read the book "Systems under indirect observation"(Wold 1982), and solve my questions.

Thank you very much.

Best Regard,
Jerry
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