Over the last years, institutional image management has become a critical element to the competitiveness of higher education institutions. The aims of this study are to review the organizational image construct; explore the process of image formation and analyze the impact of the different source factors on university's image. A sample of 1024 university student was surveyed to test a conceptual model of university image formation trough structural equations. The results show that, nevertheless all factors being significant to image formation, the university social life atmosphere and employment opportunities are the most important predictors. As a result, this study is important for researchers and practitioners, as it presents a different approach to image measurement, it provides a new framework to assess university image formation and, at the same time, helps managers to understand that educational related factors aren't the only ones where they should focus to successful differentiate their institutions and remain competitive.
Purpose
This paper aims to discuss the estimation of PLS models with second-order formative constructs as existing research has mainly focused on second-order constructs with a reflective measurement.
Design/methodology/approach
Using a model grounded on Roger’s innovation diffusion theory applied to online travel shopping, an empirical application is used to assess and compare the different approaches used to estimate a formative second-order construct. The proposed model examines the innovations characteristics that have an impact on intentions to purchase travel online, using data from a convenience sample of 1,732 responses.
Findings
The findings show that all approaches produce similar results regarding the path coefficients, the predictive relevance of the model and the explained variance. The main differences between the approaches are related to the weights of the first-order constructs on the second-order construct and the significance of those weights. Several recommendations are made for researchers on which approach to use.
Originality/value
Since most research has focused on second-order constructs with a reflective measurement and there is limited research with formative second-order constructs, this paper provides a comparison of the different approaches typically used to estimate a formative second-order construct and present useful guidelines for researchers to decide the method to analyse a model with second-order constructs and how to assess formative second-order constructs.
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