IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v120y2020icp147-156.html
   My bibliography  Save this article

Using confirmatory composite analysis to assess emergent variables in business research

Author

Listed:
  • Henseler, Jörg
  • Schuberth, Florian

Abstract

Confirmatory composite analysis (CCA) was invented by Jörg Henseler and Theo K. Dijkstra in 2014 and elaborated by Schuberth et al. (2018b) as an innovative set of procedures for specifying and assessing composite models. Composite models consist of two or more interrelated constructs, all of which emerge as linear combinations of extant variables, hence the term ‘emergent variables’. In a recent JBR paper, Hair et al. (2020) mistook CCA for the measurement model evaluation step of partial least squares structural equation modeling. In order to clear up potential confusion among JBR readers, the paper at hand explains CCA as it was originally developed, including its key steps: model specification, identification, estimation, and assessment. Moreover, it illustrates the use of CCA by means of an empirical study on business value of information technology. A final discussion aims to help analysts in business research to decide which type of covariance structure analysis to use.

Suggested Citation

  • Henseler, Jörg & Schuberth, Florian, 2020. "Using confirmatory composite analysis to assess emergent variables in business research," Journal of Business Research, Elsevier, vol. 120(C), pages 147-156.
    • Handle: RePEc:eee:jbrese:v:120:y:2020:i:c:p:147-156
    DOI: 10.1016/j.jbusres.2020.07.026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296320304665
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2020.07.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Edward E. Rigdon & Marko Sarstedt & Jan-Michael Becker, 2020. "Quantify uncertainty in behavioral research," Nature Human Behaviour, Nature, vol. 4(4), pages 329-331, April.
    2. Dijkstra, Theo, 1983. "Some comments on maximum likelihood and partial least squares methods," Journal of Econometrics, Elsevier, vol. 22(1-2), pages 67-90.
    3. Po-Hsien Huang, 2017. "Asymptotics of AIC, BIC, and RMSEA for Model Selection in Structural Equation Modeling," Psychometrika, Springer;The Psychometric Society, vol. 82(2), pages 407-426, June.
    4. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    5. Felipe, Carmen M. & Roldán, José L. & Leal-Rodríguez, Antonio L., 2016. "An explanatory and predictive model for organizational agility," Journal of Business Research, Elsevier, vol. 69(10), pages 4624-4631.
    6. Laura Rueda & Jose Benitez & Jessica Braojos, 2017. "From traditional education technologies to student satisfaction in Management education: A theory of the role of social media applications," Post-Print hal-02002366, HAL.
    7. Pittino, Daniel & Barroso Martínez, Ascensión & Chirico, Francesco & Sanguino Galván, Ramón, 2018. "Psychological ownership, knowledge sharing and entrepreneurial orientation in family firms: The moderating role of governance heterogeneity," Journal of Business Research, Elsevier, vol. 84(C), pages 312-326.
    8. Daniel Ruiz-Palomo & Julio Diéguez-Soto & Antonio Duréndez & José António C. Santos, 2019. "Family Management and Firm Performance in Family SMEs: The Mediating Roles of Management Control Systems and Technological Innovation," Sustainability, MDPI, vol. 11(14), pages 1-22, July.
    9. Florian Schuberth & Jörg Henseler & Theo K. Dijkstra, 2018. "Partial least squares path modeling using ordinal categorical indicators," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 9-35, January.
    10. Regina Nuzzo, 2015. "How scientists fool themselves – and how they can stop," Nature, Nature, vol. 526(7572), pages 182-185, October.
    11. Jose Benitez & Javier Llorens & Jessica Braojos, 2018. "How information technology influences opportunity exploration and exploitation firm’s capabilities," Post-Print hal-01774321, HAL.
    12. Foltean, Florin Sabin & Trif, Simona Mihaela & Tuleu, Daniela Liliana, 2019. "Customer relationship management capabilities and social media technology use: Consequences on firm performance," Journal of Business Research, Elsevier, vol. 104(C), pages 563-575.
    13. Jose Benitez & Gautam Ray & Jörg Henseler, 2018. "Impact of Information Technology Infrastructure Flexibility on Mergers and Acquisitions," Post-Print hal-01998000, HAL.
    14. Hamparsum Bozdogan, 1987. "Model selection and Akaike's Information Criterion (AIC): The general theory and its analytical extensions," Psychometrika, Springer;The Psychometric Society, vol. 52(3), pages 345-370, September.
    15. Theo Dijkstra & Jörg Henseler, 2011. "Linear indices in nonlinear structural equation models: best fitting proper indices and other composites," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(6), pages 1505-1518, October.
    16. Cegarra-Navarro, Juan Gabriel & Papa, Armando & Garcia-Perez, Alexeis & Fiano, Fabio, 2019. "An open-minded strategy towards eco-innovation: A key to sustainable growth in a global enterprise," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    17. Heungsun Hwang & Yoshio Takane, 2004. "Generalized structured component analysis," Psychometrika, Springer;The Psychometric Society, vol. 69(1), pages 81-99, March.
    18. S. Mostafa Rasoolimanesh & Shuhaida Md Noor & Florian Schuberth & Mastura Jaafar, 2019. "Investigating the effects of tourist engagement on satisfaction and loyalty," The Service Industries Journal, Taylor & Francis Journals, vol. 39(7-8), pages 559-574, June.
    19. Sajtos, Laszlo & Magyar, Bertalan, 2016. "Auxiliary theories as translation mechanisms for measurement model specification," Journal of Business Research, Elsevier, vol. 69(8), pages 3186-3191.
    20. Jessica Braojos & Jose Benitez & Javier Llorens, 2019. "How do social commerce-IT capabilities influence firm performance? Theory and empirical evidence," Post-Print hal-02057780, HAL.
    21. Sarstedt, Marko & Hair, Joseph F. & Ringle, Christian M. & Thiele, Kai O. & Gudergan, Siegfried P., 2016. "Estimation issues with PLS and CBSEM: Where the bias lies!," Journal of Business Research, Elsevier, vol. 69(10), pages 3998-4010.
    22. Fuller, Christie M. & Simmering, Marcia J. & Atinc, Guclu & Atinc, Yasemin & Babin, Barry J., 2016. "Common methods variance detection in business research," Journal of Business Research, Elsevier, vol. 69(8), pages 3192-3198.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manish Mohan Baral & Subhodeep Mukherjee & Rajesh Kr Singh & Venkataiah Chittipaka & Yigit Kazancoglu, 2023. "Exploring antecedents for the circular economy capability of micro, small and medium enterprises: An empirical study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5785-5806, December.
    2. Samuel Ogbeibu & Charbel Jose Chiappetta Jabbour & James Gaskin & Abdelhak Senadjki & Mathew Hughes, 2021. "Leveraging STARA competencies and green creativity to boost green organisational innovative evidence: A praxis for sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2421-2440, July.
    3. Iqbal Yulizar Mukti & Jörg Henseler & Adina Aldea & Rajesri Govindaraju & Maria E. Iacob, 2022. "Rural smartness: Its determinants and impacts on rural economic welfare," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 1943-1970, December.
    4. Muhammad Fayyaz Nazir & Shahzadah Fahed Qureshi, 2023. "Applying Structural Equation Modelling to Understand the Implementation of Social Distancing in the Professional Lives of Healthcare Workers," IJERPH, MDPI, vol. 20(5), pages 1-32, March.
    5. Yating Tian & Qeis Kamran, 2021. "A Review of Antecedents and Effects of Loyalty on Food Retailers toward Sustainability," Sustainability, MDPI, vol. 13(23), pages 1-18, December.
    6. Yáñez-Araque, Benito & Sánchez-Infante Hernández, Juan Pablo & Gutiérrez-Broncano, Santiago & Jiménez-Estévez, Pedro, 2021. "Corporate social responsibility in micro-, small- and medium-sized enterprises: Multigroup analysis of family vs. nonfamily firms," Journal of Business Research, Elsevier, vol. 124(C), pages 581-592.
    7. Enrico Ciavolino & Massimo Aria & Jun-Hwa Cheah & José Luis Roldán, 2022. "A tale of PLS Structural Equation Modelling: Episode I— A Bibliometrix Citation Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1323-1348, December.
    8. Nicolas G. A. Lorgnier & Che-Jen Su & Shawn M. O’Rourke, 2022. "Brands’ perceived sustainable development goals: index development and applications with professional sport teams and fast-food brands," Service Business, Springer;Pan-Pacific Business Association, vol. 16(1), pages 125-157, March.
    9. José Manuel Santos-Jaén & Ana León-Gómez & Daniel Ruiz-Palomo & Francisca García-Lopera & María del Carmen Valls Martínez, 2022. "Exploring Information and Communication Technologies as Driving Forces in Hotel SMEs Performance: Influence of Corporate Social Responsibility," Mathematics, MDPI, vol. 10(19), pages 1-15, October.
    10. Liu, Yuqing & Schuberth, Florian & Liu, Yide & Henseler, Jörg, 2022. "Modeling and assessing forged concepts in tourism and hospitality using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 152(C), pages 221-230.
    11. Rosa Fabbricatore & Maria Iannario & Rosaria Romano & Domenico Vistocco, 2023. "Component-based structural equation modeling for the assessment of psycho-social aspects and performance of athletes," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 107(1), pages 343-367, March.
    12. Yan, Ruihe & Gong, Xiang, 2022. "Peer-to-peer accommodation platform affordance: Scale development and empirical investigation," Journal of Business Research, Elsevier, vol. 144(C), pages 922-938.
    13. Rafael Becerra-Vicario & Daniel Ruiz-Palomo & Ana León-Gómez & José Manuel Santos-Jaén, 2023. "The Relationship between Innovation and the Performance of Small and Medium-Sized Businesses in the Industrial Sector: The Mediating Role of CSR," Economies, MDPI, vol. 11(3), pages 1-18, March.
    14. Juan A. Marin-Garcia & Tomas Bonavia, 2021. "Empowerment and Employee Well-Being: A Mediation Analysis Study," IJERPH, MDPI, vol. 18(11), pages 1-22, May.
    15. Blanco-González, Alicia & Cachón-Rodríguez, Gabriel & Hernández-Perlines, Felipe & Prado-Román, Camilo, 2023. "Effects of social responsibility on legitimacy and revisit intention: The moderating role of anxiety," Journal of Business Research, Elsevier, vol. 157(C).
    16. Cegarra-Navarro, Juan-Gabriel & Wensley, Anthony & Batistic, Sasa & Evans, Max & Para, Clara Cubillas, 2021. "Minimizing the effects of defensive routines on knowledge hiding though unlearning," Journal of Business Research, Elsevier, vol. 137(C), pages 58-68.
    17. Garcia-Perez, Alexeis & Cegarra-Navarro, Juan Gabriel & Sallos, Mark Paul & Martinez-Caro, Eva & Chinnaswamy, Anitha, 2023. "Resilience in healthcare systems: Cyber security and digital transformation," Technovation, Elsevier, vol. 121(C).
    18. Fernando Gimeno-Arias & José Manuel Santos-Jaén & Mercedes Palacios-Manzano & Héctor Horacio Garza-Sánchez, 2021. "Using PLS-SEM to Analyze the Effect of CSR on Corporate Performance: The Mediating Role of Human Resources Management and Customer Satisfaction. An Empirical Study in the Spanish Food and Beverage Man," Mathematics, MDPI, vol. 9(22), pages 1-21, November.
    19. Taleb S. T. Taleb & Norashidah Hashim & Norria Zakaria, 2023. "Entrepreneurial Leadership and Entrepreneurial Success: The Mediating Role of Entrepreneurial Opportunity Recognition and Innovation Capability," Sustainability, MDPI, vol. 15(7), pages 1-17, March.
    20. Cheah, Jun-Hwa & Amaro, Suzanne & Roldán, José L., 2023. "Multigroup analysis of more than two groups in PLS-SEM: A review, illustration, and recommendations," Journal of Business Research, Elsevier, vol. 156(C).
    21. Jörg Henseler & Manuela Guerreiro & Nelson de Matos, 2021. "The interplay of marketing and design," Review of Managerial Science, Springer, vol. 15(5), pages 1129-1137, July.
    22. Pinaz Tiwari & Rahul Pratap Singh Kaurav & Kian Yeik Koay, 2024. "Understanding travel apps usage intention: findings from PLS and NCA," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(1), pages 25-41, March.
    23. Umar Ali Bukar & Marzanah A. Jabar & Fatimah Sidi & RNH Binti Nor & Salfarina Abdullah & Iskandar Ishak, 2022. "How social media crisis response and social interaction is helping people recover from Covid-19: an empirical investigation," Journal of Computational Social Science, Springer, vol. 5(1), pages 781-809, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jessica Braojos & Jose Benitez & Javier Llorens & Laura Ruiz, 2020. "Impact of IT integration on the firm’s knowledge absorption and desorption," Post-Print hal-03160729, HAL.
    2. Florian Schuberth, 2021. "Confirmatory composite analysis using partial least squares: setting the record straight," Review of Managerial Science, Springer, vol. 15(5), pages 1311-1345, July.
    3. Marko Sarstedt & Christian M Ringle & Jun-Hwa Cheah & Hiram Ting & Ovidiu I Moisescu & Lacramioara Radomir, 2020. "Structural model robustness checks in PLS-SEM," Tourism Economics, , vol. 26(4), pages 531-554, June.
    4. Lin, Shunzhi & Lin, Jiabao, 2023. "How organizations leverage digital technology to develop customization and enhance customer relationship performance: An empirical investigation," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Fernando Gimeno-Arias & José Manuel Santos-Jaén & Mercedes Palacios-Manzano & Héctor Horacio Garza-Sánchez, 2021. "Using PLS-SEM to Analyze the Effect of CSR on Corporate Performance: The Mediating Role of Human Resources Management and Customer Satisfaction. An Empirical Study in the Spanish Food and Beverage Man," Mathematics, MDPI, vol. 9(22), pages 1-21, November.
    6. Jose Benitez & Laura Ruiz & Ana Castillo & Javier Llorens, 2020. "How corporate social responsibility activities influence employer reputation: The role of social media capability," Post-Print hal-02462583, HAL.
    7. Gyeongcheol Cho & Heungsun Hwang & Marko Sarstedt & Christian M. Ringle, 2020. "Cutoff criteria for overall model fit indexes in generalized structured component analysis," Journal of Marketing Analytics, Palgrave Macmillan, vol. 8(4), pages 189-202, December.
    8. Liu, Yuqing & Schuberth, Florian & Liu, Yide & Henseler, Jörg, 2022. "Modeling and assessing forged concepts in tourism and hospitality using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 152(C), pages 221-230.
    9. Qi Song & Yi Wang & Yang Chen & Jose Benitez & Jiang Hu, 2019. "Impact of the usage of social media in the workplace on team and employee performance," Post-Print hal-02159305, HAL.
    10. Aslı Ersoy & Zahid Mahmood & Shahbaz Sharif & Nazlı Ersoy & Rüya Ehtiyar, 2023. "Exploring the Associations between Social Support, Perceived Uncertainty, Job Stress, and Emotional Exhaustion during the COVID-19 Crisis," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    11. Hair, Joseph F. & Astrachan, Claudia Binz & Moisescu, Ovidiu I. & Radomir, Lăcrămioara & Sarstedt, Marko & Vaithilingam, Santha & Ringle, Christian M., 2021. "Executing and interpreting applications of PLS-SEM: Updates for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    12. Joon-ho Kim & Kwang-jin Kim & Bum-tae Park & Hyun-ju Choi, 2022. "The Phenomenon and Development of K-Pop: The Relationship between Success Factors of K-Pop and the National Image, Social Network Service Citizenship Behavior, and Tourist Behavioral Intention," Sustainability, MDPI, vol. 14(6), pages 1-30, March.
    13. Riggs, Randy & Felipe, Carmen M. & Roldán, José L. & Real, Juan C., 2024. "Information systems capabilities value creation through circular economy practices in uncertain environments: A conditional mediation model," Journal of Business Research, Elsevier, vol. 175(C).
    14. Marko Sarstedt & Ovidiu-Ioan Moisescu, 2024. "Quantifying uncertainty in PLS-SEM-based mediation analyses," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(1), pages 87-96, March.
    15. José Manuel Santos-Jaén & Ana León-Gómez & Daniel Ruiz-Palomo & Francisca García-Lopera & María del Carmen Valls Martínez, 2022. "Exploring Information and Communication Technologies as Driving Forces in Hotel SMEs Performance: Influence of Corporate Social Responsibility," Mathematics, MDPI, vol. 10(19), pages 1-15, October.
    16. Francisco Sánchez-Cubo & José Mondéjar-Jiménez & Alejandro García-Pozo & Guillermo Ceballos-Santamaría, 2021. "A Study of the Wages in the Spanish Energy Sector," Energies, MDPI, vol. 14(13), pages 1-10, July.
    17. Jessica Braojos & Jose Benitez & Javier Llorens, 2019. "How do social commerce-IT capabilities influence firm performance? Theory and empirical evidence," Post-Print hal-02057780, HAL.
    18. Dennis Cook, R. & Forzani, Liliana, 2023. "On the role of partial least squares in path analysis for the social sciences," Journal of Business Research, Elsevier, vol. 167(C).
    19. Meena, Rahul & Sarabhai, Samar, 2023. "Extrinsic and intrinsic motivators for usage continuance of hedonic mobile apps," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    20. Sarker, Moniruzzaman & Mohd-Any, Amrul Asraf & Kamarulzaman, Yusniza, 2021. "Validating a consumer-based service brand equity (CBSBE) model in the airline industry," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:120:y:2020:i:c:p:147-156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.