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Article
Publication date: 2 July 2018

Paulo Duarte and Suzanne Amaro

This paper aims to discuss the estimation of PLS models with second-order formative constructs as existing research has mainly focused on second-order constructs with a…

Abstract

Purpose

This paper aims to discuss the estimation of PLS models with second-order formative constructs as existing research has mainly focused on second-order constructs with a reflective measurement.

Design/methodology/approach

Using a model grounded on Roger’s innovation diffusion theory applied to online travel shopping, an empirical application is used to assess and compare the different approaches used to estimate a formative second-order construct. The proposed model examines the innovations characteristics that have an impact on intentions to purchase travel online, using data from a convenience sample of 1,732 responses.

Findings

The findings show that all approaches produce similar results regarding the path coefficients, the predictive relevance of the model and the explained variance. The main differences between the approaches are related to the weights of the first-order constructs on the second-order construct and the significance of those weights. Several recommendations are made for researchers on which approach to use.

Originality/value

Since most research has focused on second-order constructs with a reflective measurement and there is limited research with formative second-order constructs, this paper provides a comparison of the different approaches typically used to estimate a formative second-order construct and present useful guidelines for researchers to decide the method to analyse a model with second-order constructs and how to assess formative second-order constructs.

研究目的

由于现有文章大多数研究反应性结构的二阶模型, 所以本论文讨论以二阶形成性结构的PLS模型。

研究设计/方法/途径

本论文以罗杰斯的创新扩散模型以基础, 应用其在在线旅游购物行为的研究。通过模型建立和背景研究, 多种预估形成性二阶结构的方法得以比较。建立的模型, 通过1,732份样本采样, 分析了各种对于在线购买旅游产品意图的创新特性。

研究结果

本论文发现, 各种方法产生相似的分析结果, 比如径路系数、模型预测相关、以及被解释变量等。三种方法的主要区别在于, 第一阶段结构与第二阶段结构的比重值, 还有这些比重值的显著程度。本论文结果对于未来理论采用哪种方法做出启示。

研究原创性/价值

由于大多数研究都集中在以反应性二阶结构分析, 很少的文章研究形成性二阶结构。因此, 本论文全面地比较了三种衡量形成性二阶结构的方法, 并且提供有效建议, 采用哪种方式以分析二阶结构, 以及如何衡量形成性二阶结构。

关键词

旅游业、在线旅游购物行为、偏最小二乘回归,二阶形成性结构

纸张类型

研究论文

Content available
Article
Publication date: 10 April 2017

Allard C.R. van Riel, Jörg Henseler, Ildikó Kemény and Zuzana Sasovova

Many important constructs of business and social sciences are conceptualized as composites of common factors, i.e. as second-order constructs composed of reflectively…

Abstract

Purpose

Many important constructs of business and social sciences are conceptualized as composites of common factors, i.e. as second-order constructs composed of reflectively measured first-order constructs. Current approaches to model this type of second-order construct provide inconsistent estimates and lack a model test that helps assess the existence and/or usefulness of a second-order construct. The purpose of this paper is to present a novel three-stage approach to model, estimate, and test second-order constructs composed of reflectively measured first-order constructs.

Design/methodology/approach

The authors compare the efficacy of the proposed three-stage approach with that of the dominant extant approaches, i.e. the repeated indicator approach, the two-stage approach, and the hybrid approach by means of simulated data whose underlying population model is known. Moreover, the authors apply the three-stage approach to a real research setting in business research.

Findings

The study based on simulated data illustrates that the three-stage approach is Fisher-consistent, whereas the dominant extant approaches are not. The study based on real data shows that the three-stage approach is meaningfully applicable in typical research settings of business research. Its results can differ substantially from those of the extant approaches.

Research limitations/implications

Analysts aiming at modeling composites of common factors should apply the proposed procedure in order to test the existence and/or usefulness of a second-order construct and to obtain consistent estimates.

Originality/value

The three-stage approach is the only consistent approach for modeling, estimating, and testing composite second-order constructs made up of reflectively measured first-order constructs.

Details

Industrial Management & Data Systems, vol. 117 no. 3
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 2 September 2020

Florian Schuberth, Manuel Elias Rademaker and Jörg Henseler

The purpose of this study is threefold: (1) to propose partial least squares path modeling (PLS-PM) as a way to estimate models containing composites of composites and to…

Abstract

Purpose

The purpose of this study is threefold: (1) to propose partial least squares path modeling (PLS-PM) as a way to estimate models containing composites of composites and to compare the performance of the PLS-PM approaches in this context, (2) to provide and evaluate two testing procedures to assess the overall fit of such models and (3) to introduce user-friendly step-by-step guidelines.

Design/methodology/approach

A simulation is conducted to examine the PLS-PM approaches and the performance of the two proposed testing procedures.

Findings

The simulation results show that the two-stage approach, its combination with the repeated indicators approach and the extended repeated indicators approach perform similarly. However, only the former is Fisher consistent. Moreover, the simulation shows that guidelines neglecting model fit assessment miss an important opportunity to detect misspecified models. Finally, the results show that both testing procedures based on the two-stage approach allow for assessment of the model fit.

Practical implications

Analysts who estimate and assess models containing composites of composites should use the authors’ guidelines, since the majority of existing guidelines neglect model fit assessment and thus omit a crucial step of structural equation modeling.

Originality/value

This study contributes to the understanding of the discussed approaches. Moreover, it highlights the importance of overall model fit assessment and provides insights about testing the fit of models containing composites of composites. Based on these findings, step-by-step guidelines are introduced to estimate and assess models containing composites of composites.

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Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

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Article
Publication date: 11 December 2017

Robin Nunkoo, Viraiyan Teeroovengadum, Peta Thomas and Llewellyn Leonard

The study conceptualizes service quality as a second-order factor and analyzes its influence on customer satisfaction, perceived value, image, consumption emotions and…

Abstract

Purpose

The study conceptualizes service quality as a second-order factor and analyzes its influence on customer satisfaction, perceived value, image, consumption emotions and customer loyalty by testing a structural equation model.

Design/methodology/approach

The model is tested using data collected from 672 guests staying in accommodation establishments located in South Africa. The study follows a hierarchical approach using confirmatory factor analysis to test the second-order factor model and structural equation modeling to test the overall model.

Findings

The results indicate that the second-order factor model is acceptable both empirically as well as conceptually and performs better than other competing models of service quality. The findings provide support for all hypotheses and evidence of a structural model with a high explanatory power.

Research limitations/implications

The second-order factor model is less useful when fine-grained analyses are needed, such as when a detailed assessment of the level of quality of service offered by a hospitality organization is required.

Practical implications

The second-order factor model allows for an analysis of service quality at different levels of abstraction. Accommodation managers interested in customers’ evaluation of service on a cumulative basis can make use of the global measure to determine service quality evaluations. Practitioners can also use the findings to manage the different dimensions of service quality.

Originality/value

The study demonstrates that service quality is best represented as a second-order factor, and in doing so, it provides an improved measurement of the construct. More so, by integrating the variable in a nomological network, the research develops a more parsimonious model than the existing ones.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 12
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 8 August 2019

Gopal Kumar and Mohit Goswami

Sustainable supply chain (SSC) provides one opportunity to achieve competitive advantage. To achieve SSC through triple bottom line (TBL) – economic, environment and…

Abstract

Purpose

Sustainable supply chain (SSC) provides one opportunity to achieve competitive advantage. To achieve SSC through triple bottom line (TBL) – economic, environment and social – is extensively discussed. Most literature in dealing with environmental issues undermine social dimension even though its potential to bring outstanding results by earning customers loyalty and commitment is immense. Local orientation and different context motivate firms to prioritize sustainability dimensions differently. The purpose of this paper is to conceptualize SSC performance as three dimensional second-order formative construct which is caused by three first-order reflective constructs. Further, the authors examined effect of sustainable performance on barriers to sustainability through collaboration.

Design/methodology/approach

The model is validated by data collected from industries in India using both partial least squares and covariance based structural equation modeling. The authors find the model is valid for both manufacturing and service sectors.

Findings

In Indian context, social dimension is most and environmental dimension is least important differentiating it from developed economy. The authors find sustainable performance subsequently mitigates barriers and risks to sustainability, thereby reducing its impact over time.

Originality/value

This study conceptualizes SSC performance as three dimensional second-order formative construct which is caused by three first-order reflective constructs. Given criticisms to TBL for being western-centric, this study unearths insightful phenomena having implications for both developing and developed world. Further, the authors find sustainable performance reduces effects of barriers to collaboration necessary to achieve SSC. This study contributes to both theory and practice by modeling sustainability performance.

Details

International Journal of Productivity and Performance Management, vol. 68 no. 8
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 5 October 2012

Thomas Mayr and Andreas H. Zins

The purpose of this paper is to test and compare different conceptual approaches for perceived value in a service context.

Abstract

Purpose

The purpose of this paper is to test and compare different conceptual approaches for perceived value in a service context.

Design/methodology/approach

Perceived value is an outcome construct that results from various benefits received and sacrifices devoted to achieve a particular exchange of a service. The paper compares three different modeling approaches (Type 1, Type 2, and Type 4) for perceived value using data from an in‐flight survey. The questionnaire covered topics such as perceived service quality and overall satisfaction, price perception, customer value, and customer retention.

Findings

The theoretical discussion repeatedly emphasizes that only the formative modeling of perceived value fits the arguments put forward in the existing literature. This study replicates and extends a study by Lin et al. in the airline service context. The paper reports details about the impact of the proposed seven “get” and “give” components, together with an analysis of the consequences perceived value has on satisfaction, loyalty, and word‐of‐mouth.

Research limitations/implications

The findings suggest extensions and improvements concerning measurement and conceptual issues.

Practical implications

Perceived value shows a substantial effect on behavioral consequences. Service operations must observe the perception of atmospherics emerging from the main service encounters next to considering functional aspects.

Originality/value

Misconceptualizations of multi‐item constructs are well known. However, critical discussions and empirical tests are still scarce in the tourism field. This paper tests and compares different conceptual approaches for perceived value in a service context.

Details

International Journal of Culture, Tourism and Hospitality Research, vol. 6 no. 4
Type: Research Article
ISSN: 1750-6182

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Article
Publication date: 18 October 2019

Sartaj Chaudhary and Ajoy Kumar Dey

Materialism has become a topic of increasing interest to researchers and policymakers because it can influence consumer behavior. However, a clear picture of how this…

Abstract

Purpose

Materialism has become a topic of increasing interest to researchers and policymakers because it can influence consumer behavior. However, a clear picture of how this phenomenon impacts consumers has proven to be elusive. Using an integrated framework, this paper aims to derive hypotheses from theoretical concepts of materialism and consumer decision-making styles and uses a survey of 1,216 respondents in India to test the hypotheses.

Design/methodology/approach

The present study is the first of its kind to test the impact of materialist values on consumer decision-making styles among a sample of 13-18 years old school children. The constructs are validated through a first- and second-order confirmatory factor analysis and an integrated second-order structural model is developed.

Findings

This study finds that materialism is a positive predictor of “recreation/ hedonistic”,; “confused by over-choice”; “brand consciousness”; “perfectionistic high-quality consciousness”; and “habitual brand loyal” style of consumers. Further, materialism has a negative impact on “price value consciousness” of consumers. These findings have important implications for theory and practice.

Research limitations/implications

This study is restricted to school children in the National Capital Region and hence cannot be generalized to the whole young population in India.

Originality/value

Conceptualizing both materialism and consumer decision-making styles as second-order constructs, this is a maiden study that examines the impact of materialistic values on the consumer decision-making styles of young consumers.

Details

Journal of Indian Business Research, vol. 12 no. 2
Type: Research Article
ISSN: 1755-4195

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Article
Publication date: 6 March 2017

Karnica Tanwar and Asha Prasad

The purpose of this paper is to conceptualise, develop and validate a scale to measure the employer brand from the perspective of existing employees.

Abstract

Purpose

The purpose of this paper is to conceptualise, develop and validate a scale to measure the employer brand from the perspective of existing employees.

Design/methodology/approach

The methodology entailed the compilation of a literature review and conduction of qualitative interviews to generate items. Five employer brand dimensions have been derived through exploratory factor analysis and further validated through confirmatory factor analysis by using a separate data of 313 employees. Also, the employer brand has been specified as a second-order factor that is determined by five first-order factors.

Findings

A final 23-item EB scale covering five dimensions of the employer brand has been developed. The dimensions identified are: a healthy work atmosphere, training and development, work-life balance, ethics and corporate social responsibility, and compensation and benefits. Also, the higher order measurement model suggests that employer brand is most influenced by the “healthy work atmosphere” dimension. These dimensions reflect the perceptions of existing employees regarding their organisation. The scale is found to be psychometrically sound for measuring the employer brand.

Practical implications

The scale is useful for both researchers and practitioners. A deeper insight into the dimensions may help managers to identify their impact on organisational outcomes like employee satisfaction, employee retention, commitment and productivity. Also, organisations can measure the perceptions of employees for identifying improvement gaps and developing effective attraction and retention strategies. The scale also provides researchers with a sought-after conceptualisation of employer brand.

Originality/value

The authors believe that the study is the first of its kind wherein the employer brand has been modelled as a second-order factor from the perspective of the existing employees.

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Article
Publication date: 12 June 2017

Kaveh Abhari, Elizabeth J. Davidson and Bo Xiao

The importance of co-innovation platforms has been well established, but a valid and reliable instrument to measure the affordances of these platforms for co-innovation…

Abstract

Purpose

The importance of co-innovation platforms has been well established, but a valid and reliable instrument to measure the affordances of these platforms for co-innovation behavior has not yet been reported in the literature. A robust, validated instrument to measure co-innovation platform affordances (PAs) will facilitate the conduct of studies across different platforms and contribute to enhanced understanding of co-innovation behaviors, outcomes, and platform design. The purpose of this paper is to conceptualize co-innovation PAs, develop a reliable measurement instrument capturing critical facets of co-innovation, namely ideation, collaboration, and communication, and validate the instrument.

Design/methodology/approach

The construct of PAs was conceptualized based on the findings from two case studies of co-innovation networks and the key characteristics of social mediating technology affordances. The measurement items newly developed via a case study underwent a two-round exploratory analysis to ensure face validity and content validity. The resulting instrument was subjected to a pilot study and a field study to establish the necessary reliability and validity.

Findings

The findings of the study reveal that co-innovation PAs have three distinctive components, namely ideation, collaboration, and communication. Furthermore, the results of the study suggest that PAs are most appropriately operationalized as a second-order construct comprising all three components. The empirical results from the field study show a high degree of confidence in both translation validity and criterion-related validity.

Originality/value

Drawing from co-innovation and affordances literature, this study develops and validates a general instrument to measure co-innovation PAs. The result is a reliable and parsimonious instrument with 12 items. The authors believe that the instrument can contribute significantly to future empirical investigations of co-innovation behavior on virtual platforms.

Details

Industrial Management & Data Systems, vol. 117 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

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