Article ID Journal Published Year Pages File Type
979936 Procedia Economics and Finance 2015 5 Pages PDF
Abstract

Partial least square structural equation modelling (PLS-SEM) provides researchers with a predictive tool for theory building. In an attempt to understand deviant behaviour which can potentially become a criminal offence, PLS-SEM opens up a valuable mean to analyse latent constructs are designed from a composite of indicators. At its basic, this is called a first-order variable. Using the first-order variable in a basic predictor-criterion research model illuminates in-depth structure on how each component of these variables affects each other. However, as an analysis moves to a more complex level, the first-order variable poses a great challenge to the researchers. This is especially true when the main focus of a study is to look at a general predisposition of a group of related first-order variables with the criterion. Nevertheless, driven by sufficient theories and validated by appropriate statistical tests, related first-order latent variables can be funnelled into a higher-order latent construct. This in turn, helps to reduce complexity of the overall research model allowing more interpretable output and concise discussions.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics