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The Partial Least Squares Approach to Structural Equation Modeling
Abstract
Provides a nontechnical introduction to the partial least squares (PLS) approach. As a logical base for comparison, the PLS approach for structural path estimation is contrasted to the covariance-based approach. In so doing, a set of considerations are then provided with the goal of helping the reader understand the conditions under which it might be reasonable or even more appropriate to employ this technique. This chapter builds up from various simple 2 latent variable models to a more complex one. The formal PLS model is provided along with a discussion of the properties of its estimates. An empirical example is provided as a basis for highlighting the various analytic considerations when using PLS and the set of tests that one can employ is assessing the validity of a PLS-based model. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
... All constructs have up to the mark reliability except dispositional fear of isolation and willingness to self-censor. Chin (1998) suggested that the Average Variance Extracted (AVE) should be minimum .50 to attain reasonable convergent validity. As shown in the above table, four constructs attitude strength towards the army, attitude strength towards religion, dispositional fear, and willingness to self-censor don't fulfill this criterion due to lower AVE. ...
... The R 2 value is helpful in evaluating the PLS-SEM measurement model Figure 2. According to Falk and Miller (1992), it should be at least 0.10. In the opinion of Chin (1998), the R 2 value of 0.67, 0.33, and 0.19 are considered as powerful, moderate, and weak. The R 2 value of willingness to self-censor is moderate and attitude strength has extremely lower R 2 values. ...
Adopting the spiral of silence framework, this study examines the association between fear of isolation on social networking sites and willingness to self-censorship. Moreover, this study investigates the mediating role of attitude strength in the relationship between contextual fear of isolation and social media users' willingness to self-censorship. Based on a cross-sectional survey design, this study collected data through a self-administered questionnaire from 600 university students. Findings through structural equation modeling showed that dispositional fear of isolation and contextual fear of isolation regarding judiciary lead social media users towards willingness to self-censorship. A significant relationship was also observed between contextual fear of isolation and attitude strength. Attitude strength significantly predicted willingness to self-censorship in all institutions except the army. Locale and ethnicity were significant predictors of the willingness to self-censorship. The findings further revealed that attitude strength towards judiciary and religion significantly mediates between contextual fear of isolation and willingness to self-censorship.
... The '10 times rule of thumb', which states that the minimum sample size should be 10 times the complexity of the relationships in the research model (Goodhue et al., 2012;Hair et al., 2011). Additionally, the sample size is adequate to analyse PLS-SEM results (Chin, 1998). Table 1 displays the respondents' complete demographic profile. ...
... Henseler et al. (2015) calculate a structural model's explanatory power by multiplying the squared multiple correlations (R 2 ) by the path coefficients' significance level. SmartPLS provides an analysis of the overall goodness-of-fit index, as well as the validity of the model by examining R 2 and the structural path of the regression model (Chin, 1998). The analysis's results elucidate the data substantiating the hypotheses of the model. ...
Despite rising recognition that addictive smartphone use is a significant concern, there has been insufficient study into how social stress, self-regulation, addictive smartphone use, and social media usage relate to Generation Z's overall psychological aspects. The current study focused on Generation Z students in Bangladesh, a developing country, who are now pursuing higher education. The current study aims to provide a quantitative assessment of the linkages between social stress and self-regulation as they relate to addictive smartphone use, which leads to social media usage in both direct and indirect ways. Furthermore, Generation Z's academic performance is regarded as a moderating construct between addictive smartphone and social media usage behaviour. Primary data were gathered using the non-probability, purposive sampling technique. The structured questionnaire survey was completed by 841 Generation Z university students in total. The study model was evaluated using the Smart PLS-SEM software programme. The study's results demonstrated the significant direct and indirect impacts of self-regulation and social stress. According to the results, a mediating relationship is evident. On the other hand, the moderating construct of academic performance did not find any statistical significance. The results of this study add to the body of knowledge about social stress, regulation, addictive smartphone use, and Generation Z's use of social media, particularly in the setting of developing nations. This study also addressed the study limitations and looked at the practical consequences of its findings.
... If there were AVE values that did not meet the criteria, latent variables also had to be removed from the model. Meanwhile, in convergent validity testing with outer loading, the expected value was greater than 0.7 in confirmatory research and greater than 0.5 in developmental research, and could use a scale of 0.5 -0.6 (Chin, 1998;Ghozali & Latan, 2014), where if there were outer loading values less than 0.4, they had to be removed from the model (Sarwono & Narimawati, 2015). ...
... There were three categories of R-Square values: substantial, moderate, and weak. R-Square values higher than 0.67 were categorized as strong, values of 0.33 were moderate, and 0.19 were weak (Chin, 1998). In this study, both direct effect and indirect effect hypothesis tests were conducted. ...
Background:Health policies in Indonesia facilitate public access to healthcare information in efforts to improve public health. These policies rely on the support of electronic healthcare information systems to provide health data and information. However, the usage of these systems faces various challenges that affect their sustainability. Objective:To determine the effect of healthcare information technology assets on the sustainability of healthcare management information systems and the role of healthcare information technology strategies as a moderating variable. Methods:This is a quantitative and explanatory research study. The sample consisted of 350 respondents, with a significance level of 0.05. Latent variables included the sustainability of healthcare management information system usage, healthcare information technology assets, and information system strategies, which also served as an intervening variable. Results:The direct effect test yielded a p-value of 0.000 (<0.05), leading to the rejection of the null hypothesis. Thus, healthcare information technology assets and healthcare information technology strategies have a positive and significant effect on the sustainability of healthcare management information system usage. The indirect effect test yielded a p-value of 0.003 (<0.05), also leading to the rejection of the null hypothesis. These results indicate that the healthcare information technology strategies variable moderates the effect of healthcare information technology assets on the sustainability of healthcare management information system usage. Conclusion:Healthcare information technology strategies strengthen the effect of healthcare information technology assets on the sustainability of healthcare management information system usage. Keywords:Health Policy; Health Information Systems; Information Technology; Indonesia
... Cụ thể, độ tin cậy của thang đo đã được đánh giá thông qua chỉ số Cronbach's Alpha và độ tin cậy tổng hợp (CR) nhằm đảm bảo nghiên cứu đạt độ tin cậy về thống kê. Theo Fornell và Larcker (1981) Hệ số xác định (R 2 ) và hệ số đường dẫn (β) được dùng để đánh giá mức độ ảnh hưởng giữa các biến nghiên cứu được đề xuất trong mô hình (Chin, 1998;Hair và cộng sự, 2012). Trong khi giải thích mức độ sai lệch trong các biến nội sinh tiềm năng (Akter và cộng sự, 2011) và các giá trị được đánh giá là mạnh (0,67), trung bình (0,33) và yếu (0,19) (Chin, 1998). ...
... Theo Fornell và Larcker (1981) Hệ số xác định (R 2 ) và hệ số đường dẫn (β) được dùng để đánh giá mức độ ảnh hưởng giữa các biến nghiên cứu được đề xuất trong mô hình (Chin, 1998;Hair và cộng sự, 2012). Trong khi giải thích mức độ sai lệch trong các biến nội sinh tiềm năng (Akter và cộng sự, 2011) và các giá trị được đánh giá là mạnh (0,67), trung bình (0,33) và yếu (0,19) (Chin, 1998). Trong khi đó, Falk và Miller (1992) cho rằng, giá trị nếu không lớn hơn 0,10 thì mô hình cấu trúc nghiên cứu có thể xem như là không đạt yêu cầu. ...
ONLINE PURCHASE INTENTION SUPPORTED BY ARTIFICIAL INTELLIGENCE: THE ROLE OF USEFULNESS AND CUSTOMIZATION
The trend of applying Artificial Intelligence (AI) to e-commerce platforms is becoming popular to attract customers to purchase products and services (Wang et al., 2023). To contribute to this explanation, research was conducted to explain the factors that influence AI-powered online purchase intentions. Through PLS-SEM analysis results from 366 questionnaires, collected from people who have made online purchases in Ho Chi Minh City, show that perceived usefulness and perceived customization affect attitudes towards AI and online purchasing intention. The study also found that the moderating effect of perceived risk did not influence the relationships between perceived usefulness, perceived customization, and online purchase intention. This shows that in the context of AI-powered online purchases, perceived usefulness and perceived customization are still the most important factors influencing consumers' purchase intentions, even when consumers feel risky when purchasing online. Results from the research help add to the theoretical foundation of customer purchasing behavior and suggest management implications for businesses in the field of e-commerce.
... According to Sholihin & Ratmono (2013), it demonstrates a poor ability to explain. Because the value is more than zero, predictive relevance research with a number of 0.180 is considered good (Chin, 1998), indicating that the model can explain 18% of the data utilized in the study. The model employed in this study is predictive or can explain the data utilized in the investigation. ...
... The predictive relevance research of 0.357 is also good because the number is more than zero. Chin (1998), indicating that the model can explain 35.7% of the data utilized in the study. The path analysis outcome for the first hypothesis that GCG has a positive effect on financial performance is 0.545 with a p-value 0.001 which is less than 0.05, indicating that if the GCG mechanism increase, then financial performance will also increase (see Table 6). ...
Companies engage in CSR and GCG activities because they believe it will improve their financial performance. Income uncertainty as an impact of pandemic makes it interesting to examine how company will operate throughout 2019-2021. This study uses data on financial dan sustainability reports from five sectors of manufacturing companies. The proportion of institutional ownership and independent commissioners, as well as the audit quality, are used to calculate GCG. The disclosed activities in SR are measured for CSR. The modified Jones model is used to measure earnings management. ROA, EPS, and Tobin's Q are used to measure financial performance. PLS method and WarpPLS v.8.0 was used to examine the hypotheses in this study. The study’s findings demonstrate that GCG significantly affect financial performance and earnings management. CSR has a substantial effect on financial performance while having no effect on earnings management. Earnings management have no significant effect on financial performance. Meanwhile, earnings management is considered unable to mediate the effect of GCG and CSR on financial performance.
... H₄.₁: Self-promotion positively mediates the relationships between Instagram use, Impulsive and Conspicuous Buying Behavior. In general, the model developed is characterized as a reflexive model (Chin, 1998;Edwards & Bagozzi, 2000;Henseler et al., 2009) based on other empirical research (Aragoncillo & Orus, 2018;Burnasheva & Gu, 2020;Taylor & Strutton, 2016), that partially relate the use of social networks with narcissism, the desire for self-promotion and behaviors of conspicuous and impulsive consumption. Due to this, the model presented in the current research differs from other models for having an integrative approach, relating at the same time all the aforementioned variables from the use of Instagram. ...
Purpose: The main objective of the present research was to investigate the influence of the use of Instagram, by Brazilian users, on narcissistic behaviors and the desire for self-promotion, and its possible impacts on impulse and conspicuous consumption. Design/methodology/approach: Based on 316 responses collected through an online survey on the behaviors related to Instagram use, Narcissism, Self-Promotion Desire, and Conspicuous and Impulse Consumption of Brazilian users, a conceptual model was developed and validated through the multivariate statistical technique of structural equation modeling with partial least squares estimation (Partial least squares structural equation modeling-PLS-SEM). Findings: Our results suggest that Instagram use has direct causal influences on both conspicuous consumption behavior and impulse consumption behavior and that narcissism and the desire for self-promotion in conjunction with Instagram use, have important roles in conspicuous consumption behavior. In this sense, the analyzed constructs contain in themselves a feedback relationship. The greater the use of Instagram, the greater the Narcissism, the Desire for Self-Promotion, and the Conspicuous Consumption Behavior.
... In order to assess the reliability of individual items, the factor loadings or simple correlations between the indicators and their corresponding constructs, a basic rule ̶ indicators with loadings equal to or greater than 0.7 are acceptable to be part of the construct ̶ ; however, some researchers, more flexible with the initial stages of scale development, allow values above 0.6 or even 0.5 (Chin, 1998;Barclay;Higgins;Thompson, 1995). They also suggest that indicators with loadings below 0.4 should be removed (Hair et al., 2014). ...
The objective of this research is to analyse the factors that influence hotel booking decisions. In Spain, the hotel industry plays a crucial role, making it essential to understand what elements motivate consumers to make hotel reservations. To address this issue, several key factors are considered, such as the IACM theory of eWOM, habit, attitude, and enjoyment. These elements are considered fundamental to understanding consumer motivations in the hotel booking process. In this study, structural equation analysis is used to examine and measure the relationships between these factors. The goal is to determine the influence that each of these factors has on consumers' final hotel booking decisions. The findings of this research will contribute to the knowledge and understanding of consumer behaviour in relation to hotel reservations. They will also be highly beneficial to the hotel industry, as these insights can be used to enhance the offerings and consumer experience in hotel establishments.
... The inner path model is evaluated through the coefficient of determination (R 2 ) of the endogenous latent variables. In PLS model the R 2 value is 0.67, 0.33and 0.19 which is substantial, moderate and week respectively (Chin, 1998). According to the readings in thye table given below employee engagement variable is at substantial level, employee empowerment, external employee job satisfaction and internal employee job satisfaction are at moderate level because their values are less than 0.67, respectively. ...
The success of companies or industries (especially working in service industry as a bank or university) greatly relies on the performance of its employees. Real brand ambassadors are those service industry employees who are able to leave an intact and deep impact on the stakeholders by an in-depth vision of their selling brand and its value proposition.y. Brand-centered HRM refers to the implementation of HR-related practices & policies, such as hiring, training & development, compensation & benefits etc. to make employees positive and productive towards their brands. Few characteristic vital pillars of the organizations to create competitive advantage as suggested by academicians and practitioners are well-trained, motivated and fairly recruited employees (Asad ur rehman 2019). The purpose of this study is to investigate the impact of internal brand management on employee job satisfaction through the mediating effect of brand commitment. Data has been collected from 300 front-line employees of commercial banks working in MCB, SCB, Bank Al Habib and Bank Alfalah, with the help of an adopted instrument. Data analysis has been done with the help of PLS SEM and Exploratory Factor Analysis (EFA) technique is used to analyze the dimensions of Internal Brand Management (IBM), Brand Commitment (BC) and Job Satisfaction (JS). The findings of this this study suggest that internal brand management has major contribution to develop brand commitment with the organization and this commitment leads towards employees' job satisfaction. It is also empirically evidenced that brand identification plays a significant role in developing the sound of internal brand management but the brand leadership, brand communication and brand centered human resource management are not individually supported by IBM. However, these dimensions become strong due to the involvement of mediator-employee engagement and employee empowerment.
... Additionally, it is crucial to employ the heterotrait-monotrait ratio (HTMT) in PLS-SEM, where the mean variance of a factor should surpass its TA B L E 1 Sample size and distribution of geographical location. (Chin, 1998 ...
Conflicts arising from human activities and biodiversity value affect the conservation efficacy of protected areas. Resolving these conflicts requires conservation‐compatible livelihoods, such as through agroecology. Here, we built a comprehensive social–psychological framework to explore and understand farmers' intentions to adopt agroecological approaches in tea management in Wuyishan National Park, China.
We extended the theory of planned behaviour (TPB) by integrating household livelihood assets (LAs) as a material precondition for the social–psychological decision‐making process. We proposed geographical location (GL) and livelihood strategy (LS) as moderating factors for this agroecology intention. We collected 369 valid household samples through structured interviews. We then used partial least square‐structural equation (PLS‐SEM) modelling to explore the determinants that affect tea farmers' agroecological intentions.
Livelihood assets were a material foundation influencing the intention to adopt agroecology and were also mediated by three psychological constructs to take effect. Perceived behavioural control explained the largest proportion of the variance for intention and exerted the most significant mediation effects. Subjective norm was another vital independent predictor and exerted a positive influence on both perceived behavioural control and attitude. The direct and mediating impacts of attitude on the intention were weaker but showed that farmers' ecological rationality outweighed value rationality.
Livelihood strategies measured by operational scale and livelihood diversity were able to moderate farmers' psychology. Subjective norm had positively significant influence on perceived behavioural control and attitude, indicating that social support to farmers enhanced their feeling of control over adopting agroecology and that important referent groups as sources of information helped farmers' attitude formation. Perceived behavioural control positively and significantly influences farmers' attitudes as well.
Synthesis and applications. Our findings provide evidence of the necessity to optimise rural farmers' livelihood assets to enhance their confidence and control over agroecology. Resolving the conservation‐development dilemma in protected areas through agroecology should aim at comprehensive support that respects bioculture and improves farmers' ability. We suggest knowledge co‐production of traditional wisdom and modern technologies, reducing management costs and risks, strengthening park‐people communication and diversifying incentives to farmers with different livelihood strategies.
The objective of this study is to propose an instrument for identifying the level of maturity of purchasing and supply management in relation to Strategic Sourcing. Based on an initial model, a maturity measurement instrument was applied to a case study company in a chemical industry company in Vale dos Sinos, in order to validate the tool. Based on this, a survey was carried out with the aim of capturing the perception of purchasing professionals on the topic. By sending a questionnaire to 250 professionals in the purchasing and supply management area, a return rate of 28% (70 respondents) was obtained from this sample. For the data obtained, structural equation model-ing (SEM) was carried out using Smart PLS 3.0® software. With the modeling, a load of 0.428 was obtained for the suppliers construct, 0.555 for the inventory construct and 0.158 for the indicators construct. Overall, the satisfactory constructs for this sample positively impact 67.8% on the Strategic Sourcing construct. Therefore, for this specific sample, the constructs referring to suppliers, inventory and indicators jointly impact Strategic Sourcing. The research in question proposed a model for a better understanding of Strategic Sourcing structures and aims to contribute to practical and organizational contexts regarding the maturity of this topic among purchasing professionals. This understanding aims to provide readers with greater empirical and academic understanding of this emerging and important topic for business and company competitiveness.
Canonical correlation analysis is commonly considered to be a general model for most parametric bivariate and multivariate statistical methods. Because of its capability for handling multiple criteria and multiple predictors simultaneously, canonical correlation analysis has a great deal of appeal and has also enjoyed increasing application in the behavioral sciences. However, it has also been plagued by several serious shortcomings. In particular, researchers have been unable to determine the statistical significance of individual parameter estimates or to relax assumptions of the canonical model that are inconsistent with theory and/or observed data. As a result, canonical correlation analysis has found more application in exploratory research than in theory testing. This paper illustrates how these problems can be resolved by expressing canonical correlation as a special case of a linear structural relations model.