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Analysing quadratic effects of formative constructs by means of variance-based structural equation modelling

  • Research Article
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European Journal of Information Systems

Abstract

Together with the development of information systems research, there has also been increased interest in non-linear relationships between focal constructs. This article presents six Partial Least Squares-based approaches for estimating formative constructs’ quadratic effects. In addition, these approaches’ performance is tested by means of a complex Monte Carlo experiment. The experiment reveals significant and substantial differences between the approaches. In general, the performance of the hybrid approach as suggested by Wold (1982) is most convincing in terms of point estimate accuracy, statistical power, and prediction accuracy. The two-stage approach suggested by Chin et al (1996) showed almost the same performance; differences between it and the hybrid approach – although statistically significant – were unsubstantial. Based on these results, the article provides guidelines for the analysis of non-linear effects by means of variance-based structural equation modelling.

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Authors and Affiliations

  1. Institute for Management Research, Radboud University Nijmegen, The Netherlands

    Jörg Henseler

  2. Higher Institute of Statistics and Knowledge Management (ISEGI), Universidade Nova de Lisboa, Portugal

    Jörg Henseler

  3. Faculty of Business Studies and Economics, University of Kaiserslautern, Germany

    Georg Fassott

  4. Faculty of Economic and Business, University of Groningen, The Netherlands

    Theo K Dijkstra

  5. School of Media and Communication, RMIT University, Melbourne, Australia

    Bradley Wilson

Authors
  1. Jörg Henseler
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  2. Georg Fassott
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  3. Theo K Dijkstra
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  4. Bradley Wilson
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Corresponding author

Correspondence to Jörg Henseler.

Additional information

Parts of this paper were introduced at the 5th International Symposium on Partial Least Squares and Related Methods, Ås, Norway, 5–7 September 2007.

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Henseler, J., Fassott, G., Dijkstra, T. et al. Analysing quadratic effects of formative constructs by means of variance-based structural equation modelling. Eur J Inf Syst 21, 99–112 (2012). https://doi.org/10.1057/ejis.2011.36

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  • DOI: https://doi.org/10.1057/ejis.2011.36

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