%0 Journal Article
	%A Samppa Suoniemi and  Harri Terho and  Rami Olkkonen
	%D 2012
	%J International Journal of Computer and Information Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 72, 2012
	%T The Measurement of Endogenous Higher-Order Formative Composite Variables in PLS-SEM: An Empirical Application from CRM System Development
	%U https://publications.waset.org/pdf/8748
	%V 72
	%X In recent methodological articles related to structural equation modeling (SEM), the question of how to measure endogenous formative variables has been raised as an urgent, unresolved issue. This research presents an empirical application from the CRM system development context to test a recently developed technique, which makes it possible to measure endogenous formative constructs in structural models. PLS path modeling is used to demonstrate the feasibility of measuring antecedent relationships at the formative indicator level, not the formative construct level. Empirical results show that this technique is a promising approach to measure antecedent relationships of formative constructs in SEM.

	%P 1648 - 1652