Dependent Formative construct

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osohaib
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Dependent Formative construct

Post by osohaib »

Hello,

I am still new to SmartPLS. Can a dependent variable be modeled as formative? For example, in my research model, my final dependent construct is "firm performance".
It is a formative construct based on the definition. But is it statistically OK to model the final dependent variable as a formative?

Many thanks.
jmbecker
SmartPLS Developer
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Real name and title: Dr. Jan-Michael Becker

Re: Dependent Formative construct

Post by jmbecker »

Sure, PLS can handle formative constructs in any position (i.e., both independent and dependent).
Dr. Jan-Michael Becker, BI Norwegian Business School, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
GoogleScholar: http://scholar.google.de/citations?user ... AAAJ&hl=de
osohaib
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Re: Dependent Formative construct

Post by osohaib »

Thanks Becker.

Just one more question. I have high-order model.
The first and the last third order constructs are formative factors while second order constructs are reflective.
Can I choose PLS consistent to estimate? If yes should I use two stage or repeated indicator approach?
I am comparing the results with PLS. In PLS all values are good (loadings and p-values etc.) but with PLSc some of the reflective factors loadings and p values for path are not significant.

In short, PLS and PLSc results are different for the same model.

Many thanks
Marsha Sabrina
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Real name and title: Marsha Sabrina Lillah

Re: Dependent Formative construct

Post by Marsha Sabrina »

Hello Sir,

My thesis using firm performance too as dependent variabel. But now i'm a bit confusing, is firm performance use reflective construct or formative construct?. Hope you will answer my question. Thank you.
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