On the relationships among latent variables and residuals in PLS path modeling: The formative-reflective scheme |
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| Affiliation: | 1. Department of Management, University of Toronto Scarborough, Canada;2. Centre for Industrial Relations, University of Toronto, Canada;3. Department of Economics, University of Leicester, United Kingdom;4. Department of Economics, University of Strathclyde, United Kingdom;1. Medical School, Estácio de Sá University, Rio de Janeiro, RJ, Brazil;2. Estácio de Sá University, Rio de Janeiro, RJ, Brazil;3. University Hospital of Federal University of Rio de Janeiro, Rio de Janeiro, RJ, Brazil;1. Álvaro MARTÍNEZ Universidad Politécnica de Madrid (UPM), ETSI de Montes, 28040, Madrid, Spain;2. Ángel Julián MARTÍN Universidad Politécnica de Madrid (UPM), ETSI de Montes, 28040, Madrid, Spain;1. Dipartimento di Ingegneria Elettrica e dell’Informazione – Università di Cassino e del Lazio meridionale, Via di Biasio 43, 03043 Cassino, Italy;2. Istituto per le Applicazioni del Calcolo M. Picone, CNR, Via Amendola 122, 70126 Bari, Italy;1. Politecnico di Milano, Department of Energy, via Lambruschini 4, 21056 Milan, Italy;2. Università di Roma “Sapienza”, Department of Mechanical and Aerospace Engineering, via Eudossiana 18, Rome, Italy;1. Department of Mechanical Engineering, Faculty of Engineering, Czech University of Life Sciences Prague, Kamycka 129, Prague, Czech Republic;2. Department of Material Sciences and Manufacturing Technology, Faculty of Engineering, Czech University of Life Sciences Prague, Kamycka 129, Prague, Czech Republic;3. Institute for Nanomaterials, Advanced Technologies and Innovation, Technical University of Liberec, Studentska 1402, Liberec, Czech Republic |
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| Abstract: | A new approach for the estimation and the validation of a structural equation model with a formative-reflective scheme is presented. The basis of the paper is a proposal for overcoming a potential deficiency of PLS path modeling. In the PLS approach the reflective scheme assumed for the endogenous latent variables (LVs) is inverted; moreover, the model errors are not explicitly taken into account for the estimation of the endogenous LVs. The proposed approach utilizes all the relevant information in the formative manifest variables (MVs) providing solutions which respect the causal structure of the model. The estimation procedure is based on the optimization of the redundancy criterion. The new approach, entitled redundancy analysis approach to path modeling (RA-PM) is compared with both traditional PLS Path Modeling and LISREL methodology, on the basis of real and simulated data. |
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