DİRSEHAN, TAŞKIN2022-12-272022-12-272022-01-01DİRSEHAN T., Henseler J., "Modeling indices using partial least squares: How to determine the optimum weights?", Quality and Quantity, 20220033-5177https://avesis.marmara.edu.tr/api/publication/9615c4df-386e-4efc-a92c-78811ea03fc8/filehttps://hdl.handle.net/11424/284228© 2022, The Author(s).Indices are often used to model theoretical concepts in economics and finance. Beyond the econometric models used to test the relationships between these variables, partial least squares path modeling (PLS-PM) allows the study of complex models, but it is an estimator that is still in its infancy in economics and finance research. Thus, the use of PLS-PM for composite analysis needs to be explored further. As one such attempt, this paper is focused on the determination of the indices’ optimum weights. For this purpose, the effects of the market potential index (MPI) on foreign direct investment (FDI) and gross domestic product (GDP) were analysed by implementing different weighting schemes. The assessment of the model shows that PLS Mode B leads to better model fit.enginfo:eu-repo/semantics/openAccessSosyal ve Beşeri BilimlerSosyolojiSocial Sciences and HumanitiesSociologyTemel Bilimler (SCI)Sosyal Bilimler (SOC)MatematikSosyal Bilimler GenelİSTATİSTİK & OLASILIKNatural Sciences (SCI)Social Sciences (SOC)MATHEMATICSSOCIAL SCIENCES, GENERALSTATISTICS & PROBABILITYİstatistik ve OlasılıkFizik BilimleriGenel Sosyal BilimlerSosyal Bilimler ve Beşeri BilimlerStatistics and ProbabilityPhysical SciencesGeneral Social SciencesSocial Sciences & HumanitiesComposite measurementIndicesPartial least squares path modelingPLS Mode APLS Mode BWeighting schemesarticle10.1007/s11135-022-01515-5