Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach
This paper describes the process of validating “business success”as a reflective-formative construct using the Partial Least Squares-Structural Equation Modeling (PLSSEM) approach. This second-order latent variable has been operationalized with four dimensions, namely perceived financial performance...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Universiti Malaysia Terengganu
2019
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| Subjects: | |
| Online Access: | http://eprints.sunway.edu.my/1125/ http://eprints.sunway.edu.my/1125/1/Tehseen%20Assessing%20perceived%20business.pdf |
| _version_ | 1848801981069524992 |
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| author | Tehseen, Shehnaz * Qureshi, Zuhaib Hassan Fatema Johara, Ramayah, T |
| author_facet | Tehseen, Shehnaz * Qureshi, Zuhaib Hassan Fatema Johara, Ramayah, T |
| author_sort | Tehseen, Shehnaz * |
| building | SU Institutional Repository |
| collection | Online Access |
| description | This paper describes the process of validating “business success”as a reflective-formative construct using the Partial Least Squares-Structural Equation Modeling (PLSSEM) approach. This second-order latent variable has been operationalized with four dimensions, namely perceived financial performance, perceived non-financial
performance, perceived business growth and perceived performance relative to competitors. These dimensions do not share a common theme and are distinctly different.
Moreover, business success is a phenomenon that occurs with the presence of these constructs. In other words, it is formed by these constructs, thus, it should be measured
as a Type II reflective-formative second-order construct. This paper has established the reflective-formative relationship among first-order and second-order constructs.
We recommend considering and measuring business success as a reflective-formative second-order latent variable because the misspecification at second-order construct
could cause drastic changes in R 2 values and in the values of path coefficients. |
| first_indexed | 2025-11-14T21:16:05Z |
| format | Article |
| id | sunway-1125 |
| institution | Sunway University |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T21:16:05Z |
| publishDate | 2019 |
| publisher | Universiti Malaysia Terengganu |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | sunway-11252019-11-25T02:02:07Z http://eprints.sunway.edu.my/1125/ Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach Tehseen, Shehnaz * Qureshi, Zuhaib Hassan Fatema Johara, Ramayah, T HD28 Management. Industrial Management This paper describes the process of validating “business success”as a reflective-formative construct using the Partial Least Squares-Structural Equation Modeling (PLSSEM) approach. This second-order latent variable has been operationalized with four dimensions, namely perceived financial performance, perceived non-financial performance, perceived business growth and perceived performance relative to competitors. These dimensions do not share a common theme and are distinctly different. Moreover, business success is a phenomenon that occurs with the presence of these constructs. In other words, it is formed by these constructs, thus, it should be measured as a Type II reflective-formative second-order construct. This paper has established the reflective-formative relationship among first-order and second-order constructs. We recommend considering and measuring business success as a reflective-formative second-order latent variable because the misspecification at second-order construct could cause drastic changes in R 2 values and in the values of path coefficients. Universiti Malaysia Terengganu 2019-10 Article PeerReviewed text en cc_by_nc_4 http://eprints.sunway.edu.my/1125/1/Tehseen%20Assessing%20perceived%20business.pdf Tehseen, Shehnaz * and Qureshi, Zuhaib Hassan and Fatema Johara, and Ramayah, T (2019) Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach. Journal of Sustainability Science and Management, 14 (5). pp. 84-114. ISSN 1823-8556 http://jssm.umt.edu.my/ |
| spellingShingle | HD28 Management. Industrial Management Tehseen, Shehnaz * Qureshi, Zuhaib Hassan Fatema Johara, Ramayah, T Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach |
| title | Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach |
| title_full | Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach |
| title_fullStr | Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach |
| title_full_unstemmed | Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach |
| title_short | Assessing perceived business success as a reflective-formative (Type II) second-order construct using PLS-SEM approach |
| title_sort | assessing perceived business success as a reflective-formative (type ii) second-order construct using pls-sem approach |
| topic | HD28 Management. Industrial Management |
| url | http://eprints.sunway.edu.my/1125/ http://eprints.sunway.edu.my/1125/ http://eprints.sunway.edu.my/1125/1/Tehseen%20Assessing%20perceived%20business.pdf |