Let's say I want to find the subdimension of psychological capital (formative construct) that best predicts work engagement. I know in linear regression, that is possible but how about in PLS-SEM? Is there a way to go about it?
Hi, Emmanuel! The predictive relevance for both reflective and formative constructs is assessed using the same method. For PLS-SEM, the recommended method to assess the predictive relevance at indicators’ level is PLSpredict. See Schmueli, G., Sarstedt, M., Hair, J.F., Cheah, J.H., Ting, H., & Ringle, C.M. (2019). Predictive model assessment in PLS-SEM: Guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322-2347. Or Hair, J.F., Hult, G.T.M., Ringle, C.M., & Sarstedt, M. (2022). A Primer on Partial Least Square Equation Modelling (PLS-SEM) (3rd ed). Thousand Oaks, CA: Sage.