THE SOLUTION OF STRUCTURAL EQUATION MODELING USING PARTIAL LEAST SQUARES ESTIMATOR ON SECOND ORDER LATENT VARIABLE: CASE STUDY ON INDONESIAN BANK’S PERFORMANCE

DONNY OKTAVIAN SYAH, I Made Sumertajaya, Lilik Purwandi

Research output: Contribution to journalArticlepeer-review

Abstract

The objective of this research is to get the solution of the structural equation model using partial least square estimator (SemPLS) which latent variable do not have indicators on
case relationship of brand equity, customers engagement, and Indonesia bank’s performance. This research is using two approaches, first is down falling second-order latent variables to first order, second is using two-step measurement. The research finding is the second approach has
goodness of fit value 0.69, and the first approach has goodness of fit value 0.63, that means the second approach is better than the first approach. Both approaches are also finding that brand equity more leverage to Indonesia bank’s performance than brand engagement.
Original languageEnglish
JournalInternational Journal of Professional Business Review
Publication statusPublished - 19 Mar 2019

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