Table 1.

Simulation results

ConstructIndicatorsaCorrelation weightsDifference in indicators’ correlations weightsbPercentage of CEI values above the 0.95 threshold (%)Percentage of simulation runs where PLS-SEM weights offer superior predictions compared to equal weights (%)
Y2y1,20.8010045.7
y4,20.848.0
y1,20.80.110082.8
y4,20.784.4
y1,20.80.210096.1
y4,20.696.3
y1,20.80.310099.2
y4,20.598.5
y1,20.80.410099.8
y4,20.498.6
y1,20.80.579.299.8
y4,20.397.8
y1,20.80.65.399.9
y4,20.297.3
Y4y1,40.8010034.6
y4,40.834.0
y1,40.80.1100100
y4,40.799.4
y1,40.80.2100100
y4,40.6100
y1,40.80.3100100
y4,40.5100
y1,40.80.4100100
y4,40.4100
y1,40.80.585.2100
y4,40.3100
y1,40.80.62.6100
y4,40.299.9

Notes:

aWe report the results of indicators 1 and 4 in this table; the results of indicator 2 are similar to those of indicator 1 and the results of indicator 3 are similar to those of indicator 4. bThe correlation weights of indicators 1 and 2 are fixed at 0.8. The correlation weights of indicators 3 and 4 systematically obtain lower values so that the difference of these indicators increases. The column shows the difference between the correlation weights of indicators 1 and 2 and indicators 3 and 4 per composite

Source: Authors’ own work

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