What are the latest guidelines for hierarchical latent variables?

06 June 2018 0 6K Report

Hi ,

There is some ambiguity in the literature about the reflective-reflective higher order constructs (Becker et al. 2012, Lee and Cadognan 2013 and Temme et al. 2016).

SmartPLS forum also reports that SmartPLS-3 does not compute AVE of HOCs correctly?

In light of these, what are the latest recommendations regarding Formative-Formative (Component HOC) models in PLS-SEM? What are the key indicators to ascertain the model is correct? What are the reporting guidelines?

Thank you in advance.

Regards... Saradhi.

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