Hi,
For SmartPLS, (Hair et al, 2016) suggests that if the exogenous constructs or/and moderators are formative, use two-stage moderation. I have two exogenous reflective-formative constructs and one exogenous reflective construct. My endogenous construct is also reflective formative. I have a moderator which is reflective and moderating the relationship both exogenous reflective-formative constructs and endogenous construct. I have chosen two-stage moderation, but orthogonalizing approach gives me better results. I can understand that the two-stage approach for moderation will be more appropriate but can anyone guide me if the orthogonalizing approach of moderation can also be used? If yes, what is the justification for that? Any source which can help me.
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