“…To illustrate, we contrast Henseler et al's representation of the composite factor model with a more accurate depiction of a composite-based measurement model in Figure 1, where: (a) the measurement-level pathways lead from the indicators to the composites, consistent with the manner in which composite variables are formed in PLS-PM models; (b) the indicators are specified as having no measurement error; and (c) the composites also have no error, meaning that they are exact weighted linear combinations of their indicators (Bollen, 2011;Bollen & Bauldry, 2011;Grace & Bollen, 2008;Kline, 2013a). This composite measurement model can be estimated using PLS-PM, other component-based modeling techniques (e.g., Hwang & Takane, 2004;Hwang, 2008Hwang, , 2009Tenenhaus, 2013;Tenenhaus & Tenenhaus, 2011), or even SEM provided that modified parameterizations are used (Bollen, 2011, Bollen & Bauldry, 2011Bollen & Davis, 2009;Dolan, 1996;Dolan, Bechger, & Molenaar, 1999;McDonald, 1996;Treiblmaier, Bentler, & Mair, 2011).…”