Title: Testing design-oriented auxiliary theories using PLS path modeling
Authors: Florian Schuberth - University of Twente (Netherlands) [presenting]
Joerg Henseler - University of Twente (Netherlands)
Abstract: Auxiliary theories are indispensable to operationalize abstract concepts in structural equation modeling (SEM). While for behavioral concepts, such as traits or attitudes, auxiliary theories already exist, the current literature lacks of auxiliary theories for design concepts. Obviously, this is particularly disadvantageous for disciplines that investigate design concepts or an interplay of design and behavioral concepts. To fill this gap, an auxiliary theory for design concepts is provided, i.e., how design concepts can be translated into constructs and observed variables. In doing so, the composite is introduced as a way to model design constructs - so-called artifacts - in SEM. To estimate structural equation models containing composites, the study at hand employs partial least squares path modeling (PLS-PM), a variance-based estimator to SEM. To assess the overall model fit in order to obtain empirical evidence for the built composites, a bootstrap-based testing procedure is applied. It compares the distance between the empirical and the model-implied variance-covariance matrix of the indicators to a critical value from its corresponding reference distribution in order to draw conclusions about the usefulness of the artifacts. This allows for answering new research questions of the sort ``Is the built construct useful?''