Specifying Servant Leadership as Reflective-Formative Hierarchical Component Models (HCM) in the Context of PLS-SEM

Abstract

Using the Partial Least Squares-Structural Equation Modelling (PLS-SEM) approach, this paper explains the method of validating Servant Leadership (SL) as a reflective-formative construct. Conceptual Skills, Empowerment, Subordinate Growth, Subordinate Prioritization, Ethical Behaviour, Emotional Healing and Creating Value for the community are the seven dimensions of this higher order latent variable. As each Servant Leadership dimension represents a separate concept, these dimensions are therefore not conceptually integrated and do not share a common cause among themselves. Thus, this paper suggests that these dimensions are to be assessed as formative construct to Servant Leadership to fill the methodological gap. In another word, the instrument is measured as a reflective-formative Hierarchical Component Models (HCM).  For data analysis purpose, SPSS version 26.0 and Smart-PLS software were used. As this is a result of a pilot study with a rather small sample size, it is recommended to use PLS-SEM as a promising tool, not only for factor analysis but for a complex, hierarchical or higher order model as well. The results of this paper has successfully provided the empirical evidence for Servant Leadership to be considered as the reflective-formative HCM via the assessment of the Measurement Model accordingly. The key implication is that it had highlighted useful guidelines to aid researchers in assessing Servant Leadership as a reflective-formative HCM and the benefits in implementing it. Researchers could report reliable findings about the relationships between the variables of Servant Leadership if they measured the principle of Servant Leadership in the best manner.