You may not be aware that you can create a shortcut to a folder from the InstallShield IDE.
All you have to do is set the Target setting of a shortcut to a directory identifier inside square brackets. Here is a screenshot from an InstallShield project that shows a shortcut for a documents component.
The target of a shortcut can be a folder
To set the target of a shortcut to a folder, you want to enter the target by typing it from the keyboard, rather than trying to browse to the folder by clicking the ellipsis button.