PARTIAL LEAST SQUARES (PLS-SEM) 2016 Edition
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PARTIAL LEAST SQUARES (PLS-SEM) 2016 Edition Copyright @c 2016 by G. David Garson and Statistical Associates Publishing Page 1 Single User License. Do not copy or post. PARTIAL LEAST SQUARES (PLS-SEM) 2016 Edition @c 2014, 2015, 2016 by G. David Garson and Statistical Associates Publishing. All rights reserved worldwide in all media. No permission is granted to any user to copy or post this work in any format or any media unless permission is granted in writing by G. David Garson and Statistical Associates Publishing. ISBN-10: 1626380392 ISBN-13: 978-1-62638-039-4 The author and publisher of this eBook and accompanying materials make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this eBook or accompanying materials. The author and publisher disclaim any warranties (express or implied), merchantability, or fitness for any particular purpose. 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David Garson, President Statistical Publishing Associates 274 Glenn Drive Asheboro, NC 27205 USA Email: [email protected] Web: www.statisticalassociates.com Copyright @c 2016 by G. David Garson and Statistical Associates Publishing Page 2 Single User License. Do not copy or post. PARTIAL LEAST SQUARES (PLS-SEM) 2016 Edition Table of Contents Overview ......................................................................................................................................... 8 Data ................................................................................................................................................. 9 Key Concepts and Terms ............................................................................................................... 10 Background ............................................................................................................................... 10 Models ...................................................................................................................................... 13 Overview .............................................................................................................................. 13 PLS-regression vs. PLS-SEM models .................................................................................... 13 Components vs. common factors ........................................................................................ 14 Components vs. summation scales ..................................................................................... 16 PLS-DA models ..................................................................................................................... 16 Mixed methods .................................................................................................................... 16 Bootstrap estimates of significance .................................................................................... 17 Reflective vs. formative models .......................................................................................... 17 Confirmatory vs. exploratory models .................................................................................. 20 Inner (structural) model vs. outer (measurement) model .................................................. 21 Endogenous vs. exogenous latent variables ....................................................................... 21 Mediating variables ............................................................................................................. 22 Moderating variables ........................................................................................................... 23 Interaction terms ................................................................................................................. 25 Partitioning direct, indirect, and total effects .................................................................... 28 Variables ................................................................................................................................... 29 Case identifier variable ........................................................................................................ 30 Measured factors and covariates ........................................................................................ 30 Modeled factors and response variables ............................................................................ 30 Single-item measures .......................................................................................................... 31 Measurement level of variables .......................................................................................... 32 Parameter estimates ................................................................................................................ 33 Cross-validation and goodness-of-fit ....................................................................................... 33 PRESS and optimal number of dimensions ......................................................................... 34 PLS-SEM in SPSS, SAS, and Stata ................................................................................................... 35 Overview .................................................................................................................................. 35 PLS-SEM in SmartPLS .................................................................................................................... 35 Overview .................................................................................................................................. 35 Estimation options in SmartPLS ............................................................................................... 36 Running the PLS algorithm ....................................................................................................... 37 Options ................................................................................................................................ 37 Data input and standardization ........................................................................................... 40 Setting the default workspace ............................................................................................. 41 Creating a PLS project and importing data .......................................................................... 41 Validating the data settings ................................................................................................. 43 Drawing the path model ...................................................................................................... 44 Reflective vs. formative models .......................................................................................... 47 Copyright @c 2016 by G. David Garson and Statistical Associates Publishing Page 3 Single User License. Do not copy or post. PARTIAL LEAST SQUARES (PLS-SEM) 2016 Edition Displaying/hiding the measurement model ........................................................................ 48 Saving the model ................................................................................................................. 49 Model report output ........................................................................................................... 52 Checking for convergence ................................................................................................... 57 OUTPUT ............................................................................................................................... 58 Path coefficients for the inner model.................................................................................. 58 Direct, indirect, and total path coefficients ........................................................................ 59 Outer model measurement loadings and weights .............................................................. 60 Bootstrapped significance output ....................................................................................... 62 Assessing model fit: Overview ............................................................................................. 62 Measurement fit for reflective models ............................................................................... 63 Measurement fit for formative models ............................................................................... 73 Goodness of fit for structural models ................................................................................. 79 Latent variable correlations output ..................................................................................... 85 Analyzing residuals .............................................................................................................