Complex modeling in marketing using component based SEM

Structural equation modeling (SEM) is an important tool for marketing researchers to estimate a network of causal relationships linking two or more complex concepts. The PLS approach to SEM, also known as component based SEM, is becoming more prominent in estimating complex models due to its soft modeling assumptions. This study elucidates the use of component based SEM in estimating a complex higher order model with a small sample size. The utility of the approach is illustrated empirically by estimating a third-order, reflective, hierarchical service quality model in the context of mHealth. The findings of the study confirm the conceptual and methodological advances of component based SEM to establish rigor in complex modeling.