Learning Outcomes

1. Understand the basic concepts of structural model specification, including mediation, moderation, and the use of control variables.
2. Explain the differences between reflective and formative measurement models and specify the appropriate measurement model.
3. Comprehend that the selection of the mode of measurement model and the indicators must be based on theoretical reasoning before data collection.
4. Explain the difference between multi-item and single-item measures and assess when to use each measurement type.
5. Understand the nature of higher-order constructs.
6. Describe the data collection and examination considerations necessary to apply PLS-SEM.
7. Learn how to develop a PLS path model using the SmartPLS software.

Chapter Preview

This chapter introduces the basic concepts of structural and measurement model specification when PLS-SEM is used. The concepts are associated with completing the first three stages in the application of PLS-SEM, as described in Chapter 1.
To begin with, Stage 1 is specifying the structural model. Next, Stage 2 is selecting and specifying the measurement models. Stage 3 summarizes the major guidelines for data collection when the application of PLS-SEM is anticipated, as well as the need to examine your data after they have been collected to ensure the results from applying PLS-SEM are valid and reliable. An understanding of these three topics will prepare you for Stage 4, estimating the model, which is the focus of Chapter 3.