Hierarchical Latent Variable Models in PLS-SEM: Guidelines for Using Reflective-Formative Type Models

Becker, Jan-Michael; Klein, Kristina; Wetzels, Martin

doi:10.1016/j.lrp.2012.10.001

Cited by 1,497 publications

(1,484 citation statements)

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“…Similarly, the discriminant validity of the constructs is also presented in Table 2, where the square root of AVE (i.e., diagonal bolded figures) of all the variables is higher than the correlation between two variables, and thus, indicating the distinctiveness of each variable (Fornell & Larcker, 1981). However, since the dependent variable (performance) is reflective-reflective type of HCM, we employed repeated indicator approach, thereby repeating the seven valid indicators of both financial and non-financial lower order components (LOCs) on performance which is the higher order component (HOC) as suggested by the HCM extant literature (Afthanorhan, 2014;Becker, Klein, & Wetzels, 2012;Ringle, Sarstedt, & Straub, 2012). Although financial and non-financial LOCs appeared in the research model, but LCOs are not taken into cognizance in both measurement and structural equation model, and therefore HOC represents the HCM in the analysis ( Hair et al, 2014).…”

Section: Analysis Of the Resultsmentioning

confidence: 99%

The Intangible Resources and Small Firms’ Multilevel Performance: A Partial Least Squares Approach

Aminu¹,

Mahmood²,

Muharram³

2015

ASS

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Previous literature testified the impact of both intellectual capital and entrepreneurial orientation on small firm performance, but the studies generally ignore the combined effect of such intangible resources on multilevel performance (i.e., financial and non-financial performance) which is the appropriate measurement system of performance. Hence, this study designed to address this issue by investigating the impact of such intangible resources on the aforesaid performance of 302 registered small and medium firms in Nigerian. To analyze the data, variance based structural equation model was employed using SmartPLS3. Consequently, the analysis established the empirical evidence of the positive significance effects of all dimensions of intellectual capital and entrepreneurial orientation on multilevel performance.

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Section: Analysis Of the Resultsmentioning

confidence: 99%

The Intangible Resources and Small Firms’ Multilevel Performance: A Partial Least Squares Approach

Aminu¹,

Mahmood²,

Muharram³

2015

ASS

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“…The approach uses different methods for data collection, including literature review, interviews with experts, workshops and an online survey, to gather different views of the concept. Our study extends the extant literature by developing a higher order construct, taking into account the most recent insights in the academic literature about how to correctly specify higher order constructs, using a Partial Least Squares (PLS) analysis (Becker et al 2012;Ringle et al 2012). …”

Section: G1mentioning

confidence: 88%

“…The repeated indicator approach with mode B on the process harmonization construct and inner path weighting scheme is used to estimate the hierarchical latent variable model (Becker et al, 2012). This approach consists of using the indicators twice: (1) for the first-order constructs and (2) for the second-order construct (BPH).…”

Section: Model Validationmentioning

confidence: 99%

“…This approach consists of using the indicators twice: (1) for the first-order constructs and (2) for the second-order construct (BPH). Having specified the measurement model in this way, the path coefficients between the first and second order constructs represent the loadings of the second order latent variable (Löhmoller, 1989;Becker et al, 2012). "This approach produces generally less biased, and therefore, more precise parameter estimates and a more reliable higher-order construct score" (Becker et al, 2012).…”

Section: Model Validationmentioning

confidence: 99%

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Measures of process harmonization

Romero

Dijkman

Grefen

et al. 2015

Information and Software Technology

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Context: Many large organizations juggle an application portfolio that contains different applications that fulfill similar tasks in the organization. In an effort to reduce operating costs, they are attempting to consolidate such applications. Before consolidating applications, the work that is done with these applications must be harmonized. This is also known as process harmonization. Objective:The increased interest in process harmonization calls for measures to quantify the extent to which processes have been harmonized. These measures should also uncover the factors that are of interest when harmonizing processes. Currently, such measures do not exist. Therefore, this study develops and validates a measurement model to quantify the level of process harmonization in an organization. Method:The measurement model was developed by means of a literature study and structured interviews. Subsequently, it was validated through a survey, using factor analysis and correlations with known related constructs. Results:As a result, a valid and reliable measurement model was developed. The factors that are found to constitute process harmonization are: the technical design of the business process and its data, the resources that execute the process, and the information systems that are used in the process.In addition, strong correlations were found between process harmonization and process standardization and between process complexity and process harmonization. Conclusion:The measurement model can be used by practitioners, because it shows them the factors that must be taken into account when harmonizing processes, and because it provides them with a means to quantify the extent to which they succeeded in harmonizing their processes. At the same time, it can be used by researchers to conduct further empirical research in the area of process harmonization.

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“…Castellanos-Verdugo et al, 2009; Cohen and Olsen, 2013;Pavlatos, 2015). SmartPLS 2.0 M3 software was utilised to analyse the data (Ringle et al, 2008).Due to its popularity in research and ability to take the whole nomological network into account, the repeated indicator approach was employed to estimate the model (Becker et al, 2012; Hair et al, 2014). …”

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confidence: 99%

Examining social customer relationship management among Irish hotels

Diffley

McCole

Carvajal-Trujillo

2018

IJCHM

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Purpose -The purpose of this study is to develop and test a model examining the key factors that emerge from the social customer relationship management (CRM) process. Specifically, the study aims to address the chain-of-effects that occurs as a result of the social CRM process, leading to superior levels of hotel performance.Design/methodology/approach -Data was collected employing a quantitative approach. Using a mail and online questionnaire, data was gathered from 120 key informants in hotels in Ireland. The proposed model was tested using partial least squares structural equation modelling.Findings -Results demonstrate that the social CRM activities of hotels enhance hotel service innovation activities. This positively impacts the ability to develop a customer-linking capability, resulting in higher levels of customer performance. In turn, higher levels of customer performance leads to higher levels of financial performance.Practical implications -Service innovation and customer-linking capability are identified as critical outcomes of the social CRM process that lead to enhanced hotel performance.Originality/value -This study explains the chain-of-effects through which the social CRM process results in higher levels of performance. Keywords: customer relationship management (CRM), innovation, social CRM, hotel industry, marketing strategy. Paper type Research paper IntroductionDespite representing a strategic imperative in the hotel industry (Padilla-Meléndez and GarridoMoreno, 2014;Rahimi, 2017), several hotels have experienced customer relationship management (CRM) failures (Rahimi and Gunlu, 2016). Whereas previous research has documented several reasons for the failure of traditional CRM technologies (e.g. Jayachandran et al., 2005; Trainor, 2012), nascent CRM research is investigating the role of social technologies in achieving success.The proliferation of social media has important implications for the hospitality industry.Social media has led to information-rich and empowered customers within a value co-creation ecosystem (Hennig-Thurau et al., 2010). "Social media have become a valuable resource for tourists' 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 experiences, where they can explicitly show their qualitative experience as well as their satisfaction/dissatisfaction with tangible attributes concerning a destination" (González-Rodríguez et al., 2016, p19-20). This user-generated content can significantly influence the travel decisions of other customers (e.g. Viglia et al., 2016). In short, social networking sites (SNSs) are having a transformative effect in the hospitality industry. They are altering and inverting the manner in which customers collect information in the purchase decision-making process (Li and Chang, 2016).Social media technologies proffer hotels a means of not only monitoring customer...

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Hierarchical Latent Variable Models in PLS-SEM: Guidelines for Using Reflective-Formative Type Models

Cited by 1,497 publications

References 69 publications

The Intangible Resources and Small Firms’ Multilevel Performance: A Partial Least Squares Approach

The Intangible Resources and Small Firms’ Multilevel Performance: A Partial Least Squares Approach

Measures of process harmonization

Examining social customer relationship management among Irish hotels

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