A Note on How to Conduct a Factor-Based PLS-SEM Analysis

Ned Kock

645 citations0/0 files storedInternational Journal of e-Collaboration

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Psychometric Methodologies and Testing Statistical Methods and Applications Advanced Statistical Methods and Models

Abstract

The composite-factor estimation dichotomy has been the epicenter of a long and ongoing debate among proponents and detractors of the use of the partial least squares (PLS) approach for structural equation modeling (SEM). In this brief research note the author discusses the implementation of a new method to conduct factor-based PLS-SEM analyses, which could be a solid step in the resolution of this debate. This method generates estimates of both true composites and factors, in two stages, fully accounting for measurement error. The author's discussion is based on an illustrative model in the field of e-collaboration. A Monte Carlo experiment suggests that model parameters generated by the method are asymptotically unbiased. The method is implemented as part of the software WarpPLS, starting in version 5.0. This note provides enough details for the method's implementation in other venues such as R and GNU Octave.

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References

1951Coefficient Alpha and the Internal Structure of Tests 2012Principles and Practice of Structural Equation Modeling 1998Principles and Practice of Structural Equation Modeling 2012Lateral Collinearity and Misleading Results in Variance-Based SEM: An Illustration and Recommendations 2008On the Use, the Misuse, and the Very Limited Usefulness of Cronbach’s Alpha 1934The Method of Path Coefficients 1989Latent Variable Path Modeling with Partial Least Squares

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