constructs (i.e., COMP, CUSA, and LIKE), the four new driver con
structs (i.e., exogenous latent variables) on the left-hand side of the exhibit (i.e., AITR, CSOR, PERF, and QUAL) have formative mea
surement models in accordance with their role in the reputation model (Schwaiger, 2004 ). Specifically, the four new constructs are measured by a total of 21 formative indicators that have been derived from lit
erature research, qualitative studies, and quantitative pretests (for more
details, see Schwaiger, 2004). Exhibit 5.12 shows a complete list of the
formative indicators and the corresponding survey questions.
140 A Primer on Partial Least Squares
Exhibit 5.11 The Conceptualffheoretical Model
Again, we use a data set with 344 observations for our empirical PLS-SEM analyses. Unlike in the simple model that we used in the prior chapters, we now also have to consider the formative measure
ment models when deciding on the minimum sample size required to estimate the model. The maximum number of arrowheads pointing at a particular construct occurs in the measurement model of Q UAL. All other formatively measured constructs have fewer indicators.
Similarly, there are fewer arrows pointing at each of the endogenous constructs in the structural model. Therefore, when building on the
10
times rule of thumb, we would need8
·10
=80
observations.Alternatively, following Cohen's
(1992)
recommendations for multiple OLS regression analysis or running a power analysis using the G*Power program, one would need 84 observations to detect R2 values of around
0.25,
assuming a significance level of5%
and astatistical power of
80%
(Chapter1).
The SmartPLS project and data files for the extended corporate reputation model can be downloaded at http://www.pls-sem.com (i.e., Corporate_Reputation_Extended.zip). Click with the right mouse button on Corporate_Reputation_Extended.zip and save the file on your hard drive. Then, extract the Corporate_Reputation_Extended.
zip file (e.g., in the folder C:\SmartPLS\). The name of the SmartPLS project file is Corporate Reputation Extended.splsp, whereby .splsp
Exhibit 5.12 Indicators of the Formative Measurement Models Quality (QUAL)
qual_1 The products/services offered by [the company] are of high quality.
qual_2 In my opinion [the company] tends to be an innovator, rather than an imitator with respect to [industry].
qual_3 I think that [the company]'s products/services offer good value for money.
qual_ 4 The services [the company] offers are good.
qual_S Customer concerns are held in high regard at [the company].
qual_6 [The company] seems to be a reliable partner for customers.
qual_l I regard [the company] as a trustworthy company.
qual_B I have a lot of respect for [the company].
Performance (PERF)
perf_1 [The company] is a very well-managed company.
perf_2 [The company] is an economically stable company.
perf_3 I assess the business risk for [the company] as modest compared to its competitors.
perf_ 4 I think that [the company] has growth potential.
perf_S [The company] has a clear vision about the future of the company.
Corporate Social Responsibility (CSOR)
csor_1 [The company] behaves in a socially conscious way.
csor_2 I have the impression that [the company] is forthright in giving information to the public.
csor_3 I have the impression that [the company] has a fair attitude toward competitors.
csor_ 4 [The company] is concerned about the preservation of the environment.
(Continued)
142 A Primer on Partial Least Squares
Exhibit 5.12
(
Continued)
csor_S I have the feeling that [the company] is not only concerned about profits.
Attractiveness (ATTRJ
attr_1 In my opinion [the company] is successful in attracting high-quality employees.
attr_2 I could see myself working at [the company].
attr_3 I like the physical appearance of [the company] (company, buildings, shops, etc.).
stands for a project that can be directly imported into the SmartPLS software (Ringle, Wende, & Will,
2005).
Run the SmartPLS software and click on File -> Import in the menu. When the Import box appears on the screen, click on Next and then on Browse to locate and import Corporate Reputation Extended.splsp as described in detail in Chapter2.
Thereafter, a new project appears with the name Corporate Reputation Extended in the SmartPLS Projects window on the lefthand side. This project contains several models (.splsm files) and the data set Full Data.csv. Highlight Corporate Reputation Extended and click on the option that expands all
(
· e-t ). Several files will be shown.The files include Base Model.splsm, Convergent Validity A1TR.
splsm, Convergent Validity CSOR.splsm, and so forth, plus a data file called Full Data.csv. Next, double-click on Base Model.splsm, and the
extended PLS path model for the corporate reputation example opens as displayed in Exhibit
5.13.
Alternatively, if you want to practice using the SmartPLS soft
ware, you can create the extended model by yourself. Following the description in Chapter
2,
we use the SmartPLS software to extend the simple model. For this purpose, right-dick on the Corporate Reputation project in the Projects window and select the option Copy Resource (Exhibit5.14).
A menu opens and gives you the option to select a name for the copy of the existing project; for example, type in the name Corporate Reputation Extended or something similar. By clicking on OK, SmartPLS will copy the initial project under the new name in the project folder window. Unfold the Corporate Reputation Extended project by dicking on the plus symbol in the Projects window (to the left of your new file name). You will then see the same files in the Corporate Reputation Extended project as were in the
File View Selection Calculate Report Window Help
:�:� ©.. El I g DOI I tfJ) � D � I � d d" � rtl Default
Ll !'(Base Model.splsm �
ltl··Gm Corporate Reputation
EJ .. [im Corporate Reputation Extended
.... !".: Base Model.splsm
... !'( Convergent Validity ATIR.splsm ... !'( Convergent Validity CSOR .. splsm ... !'( Convergent Validity PERF.splsm
144 A Primer on Partial Least Squares
Corporate Reputation project: (1) the SmartPLS model Simple Model .splsm and
(2}
the data set Full Data.csv.Next, rename the Simple Model.splsm file as Base Model .splsm. After clicking with the right mouse button on the Simple Model.splsm file in the Corporate Reputation Extended project ( �
SmartPLS Projects window), a dialog with several options opens (Exhibit 5.14). Select the Rename Resource option in this dialog and enter Base Model, and then click OK (the file extension .splsm will automatically be added to your new model name). After unfolding the Corporate Reputation Extended project in the Projects window, you will find that Simple Model.splsm has been renamed as Base Model.splsm. Moreover, you will see the Full Data.csv file in the new project.
Now, you can start extending the simple PLS path model on cor
porate reputation. Double-<lick on the Base Model.splsm file in the Corporate Reputation Extended project-which is the copy of the Simple Model.splsm file-and the existing PLS path model elements