Introduction to Partial Least Square: Common Criteria and Practical Considerations

2013 ◽  
Vol 779-780 ◽  
pp. 1766-1769 ◽  
Author(s):  
Ke Hwa Lee ◽  
Shih Chih Che
Keyword(s):  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Social Science Research ◽  
Science Research ◽  
Research Area ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Common Criteria

In the social science research area, there are two important statistical methodologies, one is covariance-based structural equation modeling (CBSEM), and the other one is variance-based partial least square (PLS). Compared with CBSEM, PLS lacks comparatively the reference books and full applications. The main purpose of this study is to develop a paradigm to demonstrate how to assess the reliability, convergent validity, discriminant validity, and path analysis in a proposed research model by using Smart PLS. We hope this study’s result can offer some correct steps when using PLS.

scholarly journals Validity and Reliability Testing on Train Driver Performance Model Using a PLS Approach

2013 ◽  
Vol 10 ◽  
pp. 361-366 ◽  
Author(s):  
Jalil Azlis-Sani ◽  
Siti Zawiah Md. Dawal ◽  
Zakuan Norhayati Mohmad
Keyword(s):  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Performance Model ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Validity And Reliability ◽  
Driver Performance ◽  
Train Driver

The purpose of this paper is to explain the assessment of validity and reliability of measured items used in survey research. The structural equation modeling techniques and Partial Least Square (PLS) will be adopted to assess the goodness of measures of constructs used in a model to examine the performance of the Malaysian train drivers. The measurement process involves assessment of construct validity of the items and followed by convergent validity. Then, the composite reliability was assessed with internal consistency measure of Cronbachs alpha. Lastly, discriminant validity was tested to assess the validity of the measurement. The constructs are not supposed to measure other constructs or overlapping constructs.

scholarly journals Pengaruh Advertising Dan Brand Ambassador Terhadap Keputusan Pembelian Melalui Brand Image Pada Konsumen Produk Pembalut Charm Di Kota Depok

2020 ◽  
Vol 3 (3) ◽  
pp. 419-433
Author(s):  
Erlita Dwi Anggraeni
Keyword(s):  
Structural Equation Modeling ◽  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Brand Image ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Inner Model ◽  
Composite Reliability

Tujuan penelitian ini adalah menganalisis pengaruh advertising dan brand ambassador terhadap keputusan pembelian melalui brand image pada konsumen produk pembalut Charm di Kota Depok. Metode analisis pada penelitian ini menggunakan SEM (Structural Equation Modeling) dengan pendekatan PLS (Partial Least Square) (SEM - PLS). Tahap uji yang dilakukan menggunakan (outer model) yaitu uji convergent validity, discriminant validity, composite reliability dan (inner model) yaitu uji R - Square, Bootstrapping serta uji analisis SEM dengan efek mediasi. Data yang digunakan dalam penelitian ini menggunakan instrument kuesioner (online) dan data valid yang berhasil dikumpulkan sebanyak 100 responden. Metode pengambilan sampel dalam penelitian ini adalah purposive sampling. Alat bantu pengujian yang digunakan adalah SmartPLS 3. Hasil penelitian menunjukkan bahwa (1) Tidak terdapat pengaruh signifikan advertising terhadap keputusan pembelian, (2) Terdapat pengaruh yang positif dan signifikan brand ambassador terhadap keputusan pembelian, (3) Terdapat pengaruh yang positif dan signifikan brand image terhadap keputusan pembelian, (4) Terdapat pengaruh yang positif dan signifikan advertising terhadap brand image, (5) Terdapat pengaruh yang positif dan signifikan brand ambassador terhadap brand image, (6) Terdapat pengaruh yang positif dan signifikan advertising terhadap keputusan pembelian melalui brand image, (7) Terdapat pengaruh yang positif dan signifikan brand ambassador terhadap keputusan pembelian melalui brand image.

Factors Influencing Consumers’ Purchase Behaviour towards Green Packaged Products

2021 ◽  
Vol 1 (1) ◽  
pp. 52-56
Author(s):  
Goh Mei Ling ◽  
Ho Sew Tiep ◽  
Yeo Sook Fern ◽  
Teh Wei Lun
Keyword(s):  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Structural Model ◽  
Negative Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Future Research ◽  
Environmental Attitude

The disposal of plastic packaging has caused the amount of waste generation, which have a negative impact on the environment. Green packaging, which is more eco-friendly packaging, is harmless to human health and biodegradable. Many businesses have turned to the movement of going green by providing green products and services. Hence, the objective of this study is to investigate the factors that influence the purchase behaviour of consumers towards green packaged products. A total of 200 respondents was recruited using convenience sampling. Data were collected with a set of self-administered questionnaires that covered respondents' profiles and all the variables in the research model. Partial Least Square Structural Equation Modeling was used to assess the measurement model and structural model. Both convergent validity and discriminant validity were deemed satisfactory. The findings have revealed 0.444 of R2 means that the model explains 44.4% of the total variation of purchase behaviour. Environmental concern and environmental attitude were found to affect consumers’ purchase behaviour positively towards green packaged products. Environmental knowledge and social influence, however, were found to be non-significant. This study will be able to provide valuable information to the marketers to focus not only on their products but the packaging of their products as well. This study also provides an insight into the consumers’ purchase behaviour towards green packaged products. It is recommended for future research to recruit more respondents with a more diversified background.

Customer Satisfaction towards Mobile Food Delivery Apps during Covid-19 Pandemic

2021 ◽  
Vol 6 (3) ◽  
pp. 191-201
Author(s):  
Goh Mei Ling ◽  
Ho Sew Tiep ◽  
Ng Zhu Er
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Convergent Validity ◽  
Discriminant Validity ◽  
Food Delivery ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Quality Service ◽  
Website Quality

Objective - The objective of this study is to investigate the determinants of customer satisfaction towards the mobile food delivery apps during the COVID-19 pandemic. Methodology/Technique - Website quality, service quality, price, and convenience were hypothesised to explain customer satisfaction towards mobile food delivery apps. 200 respondents were recruited using convenience sampling. Due to COVID-19, the data collection was done using Google Form which consisted of respondents' profile and measurements for all the constructs in this study. All the instruments of the variables were adapted from previous studies. Partial Least Square Structural Equation Modeling (PLS-SEM) was performed to assess the measurements' validity and test the relationship among the variables. Findings - Convergent validity and discriminant validity which were assessed via measurement model were satisfactory. The R-square value obtained was 0.565. This indicates that, the model explains customer satisfaction by 56.5% towards mobile food delivery apps during the COVID-19 pandemic. The findings show that website quality and convenience have significantly influenced customer satisfaction towards mobile food delivery apps. Service quality and price, however, were found insignificant. Website quality has been found as the most important predictor of customer satisfaction. Novelty - This study provided an insight into the customer satisfaction towards the mobile food delivery apps from the new norm of COVID-19 measured perspective. The apps' website quality and the convenience of using the apps were revealed as important factors that impact customer satisfaction significantly during the pandemic period. Type of Paper - Empirical. Keywords: Customer Satisfaction; Mobile Food Delivery Apps; COVID-19; Website Quality; Service Quality; Price; Convenience. JEL Classification: M15

Development and validation of multi-factor employee engagement measuring instrument: a formative measurement model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Puneet Kumar ◽  
Nayantara Padhi
Keyword(s):  
Employee Engagement ◽  
Convergent Validity ◽  
Structural Equation ◽  
Measurement Model ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Equation Modeling ◽  
Organizational Setting ◽  
Content Type

PurposeThe purpose of this study is to bring about an exhaustive measurement instrument of employee engagement and validate the same in Indian settings.Design/methodology/approachThis descriptive and cross-sectional study initiates with reviewing the available literature in the field of employee engagement to identify factors affecting and the corresponding items defining them. Following the discussion with experts and industry professionals, an instrument was, thus, obtained to administer the primary data from employees working in public and private power companies in India. The study used Partial Least Square-Structural Equation Modeling (PLS-SEM) 3 to demonstrate employee engagement as a first-order reflective and second-order formative construct. Thereafter, reliability and convergent validity were assessed to validate the instrument.FindingsThis paper conceptualized employee engagement as a multi-factor construct (nine in numbers). The factors are “Respect”, “Supervisor's support and recognition”, “Growth and development”, “Creative and challenging job”, “Job significance”, “Perceived self-worth”, “performance evaluation and recognition” and “Organizational bureaucracy”. These factors are exhaustive and collectively define employee engagement. Distortion or omission in any of these items may distort the nature of construct as well.Originality/valuePrevious studies have defined the concept of employee engagement as unidimensional and thus observe serious lacunas. This study identified employee engagement as a multi-factor construct that incorporates the exhaustive nature of the organizational setting. Not only this study adds value to the existing body of knowledge in the field of employee engagement but also specify the measurement model as a formative one concerning employee engagement.

Customer Benefits on Bitcoin as a Medium of Exchange

2019 ◽  
Vol 5 (1) ◽  
pp. 22
Author(s):  
Maryam Jameelah Hashim ◽  
Mohd Faizal Kamarudin ◽  
Nur Afizah Muhamad Arifin ◽  
Mohd Rahim Khamis
Keyword(s):  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Structural Model ◽  
Partial Least Square ◽  
Least Square ◽  
Future Research ◽  
Interesting Insight ◽  
Klang Valley ◽  
Insight Into

Cryptocurrency is a digital currency that is powered by blockchain technology. One of it is bitcoin, a system that is digitally created and traded tokens to which value is assigned. The level of adoption of bitcoin has accelerated due to several fiscal crises that leads to financial crashes that have affected the lives of millions of people. This has created a demand for new kinds of niche money. Issues need to be closely discussed before it is fully accepted by customers as a medium of exchange. Even though bitcoin is used as a medium of exchange, there is still no specific guidance and benefits to the users. The issues concernedare whether the customers will get the benefits of privacy, lower transaction costs and freedom in payment. Therefore, the aims of this paper are to identify the relationship between transaction cost, privacy and digital payment as a benefit of bitcoin as a medium of exchange. This research will be conducted in Klang Valley area and the questionnaires will be disseminated directly to respondents. These respondents will be identified using probability simple random sampling. A regression analysis will be conducted comprising 200 observations in Klang Valley, Malaysia. Partial least square-structural equation (PLS-SEM) will be used. In the measurement model, reliability will be assessed by examining the Composite Reliability (CR), while validity will be assessed by convergent validity and discriminant validity. Subsequently, structural model testing with 500 re-samples was applied to test the hypothesized relationships between exogenous variables and endogenous variable. Digital payment and privacy are statistically significant towards the benefit of using bitcoin as a medium of exchange. It was found that the digital payment contributes the highest benefit to the customers followed by privacy. The results provide interesting insight into the determinants for the customers benefit using bitcoin. Although the findings show significant results customers should always decide the good and bad thoroughly before finalizing their decisions on the usage of bitcoin. Therefore, it is hoped that this study will enrich the growing literature on the subject and future research needs to explore on the benefits of using bitcoin among the real users. This study is expected to give guidelines to the policymakers on the implementation of bitcoin as a medium of exchange. It is also expected that the results may provide interesting insight into the determinants of customer benefits using bitcoin. Simultaneously, it will contribute to the elements of industry, innovation and infrastructure.

scholarly journals Development and Validation of Extended Multi-Dimensional Scale of Entrepreneurial Ecosystem in the context of Pakistan

2021 ◽  
pp. 17-34
Author(s):  
Waqar Ahmed Sethar ◽  
Adnan Pitafi ◽  
Arabella Bhutto
Keyword(s):  
Structural Equation ◽  
Discriminant Validity ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Entrepreneurial Ecosystem ◽  
Homogeneous Sample ◽  
Average Variance ◽  
Development And Validation ◽  
Confirmatory Factory Analysis

The purpose of this research is to validate the multi-dimensional scale of EntrepreneurialcEcosystem in the context of Pakistan. This research is based on 7 constructs with 54 items that affect the entrepreneurial ecosystem in any given region. The sample of 244 respondents are the owners of companies and, startups who participated in this research.The Confirmatory factory analysis showed factor loadings of all constructs greater than 0.40, while partial least square structural equation modeling showed acceptable values of construct reliability, composite reliability, however, average variance extracted was shown to be greater than 0.40 and less than the acceptable value of 0.5 for some constructs, while the HTMT ratio established discriminant validity of the constructs another criterion i.e. Fornell-Larcker criterion also established the discriminant validity of the constructs with some constructs having values less than 0.705, while some of the item outer loadings were found to be between 0.6-0.70 however, within the acceptable range. This research has validated the multi-dimensional scale of the entrepreneurial ecosystem with new sub-domain i.e. support professions and support finance. This scale can be used to measure the strength of the entrepreneurial ecosystem of any region with appropriate homogeneous sample

scholarly journals The Effect of Internal Control on the Financial Performance of the North Gorontalo Regency Government

2021 ◽  
pp. 60
Author(s):  
Yanti Aneta ◽  
Abdul Wahab Podungge
Keyword(s):  
Data Analysis ◽  
Local Government ◽  
Financial Performance ◽  
Internal Control ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
The North

This study aims to determine and describe whether there is an influence of internal supervision on the financial performance of the North Gorontalo Regency Government. Design/Methodology/Approach: The sample involved 84 respondents of local government officials from the planning division, and those in charge of activities at all regional organizations in North Gorontalo District-Indonesia. This study used an explanatory method with a quantitative approach. Furthermore, the reflective model measurement used convergent and discriminant validity. In addition, the Partial Least Square-Structural Equation Modeling (PLS-SEM) technique was used as the data analysis. The results showed that Internal Control had a positive but not significant effect on the Government's Financial Performance of North Gorontalo Regency. The results of data analysis explain that the higher the Internal Control carried out by APIP, the significant value of the influence of the North Gorontalo Regency Government's Financial Performance, on the contrary, the lower the Internal Control carried out by APIP, the lower the significant value of the influence of the North Gorontalo Regency Government's budget performance. The supervision in question is the supervision carried out internally by the local government by the Government Internal Supervisory Apparatus (APIP), and is directly responsible to the regional head of the Regent/Deputy Regent. In carrying out its functions, APIP conducts independent assessments within the organizational unit based on the relevant authority, with the aim of knowing the entire process of activities starting from planning, implementation, programs and activities, until the evaluation of audit reviews, monitoring, and other supervisory activities on the implementation of tasks. and organizational functions.

scholarly journals ANALISIS PENGARUH MANAJEMEN RANTAI PASOK TERHADAP KINERJA PERUSAHAAN PT. SEMESTA MITRA SEJAHTERA CABANG SIDOARJO MENGGUNAKAN STRUCTURAL EQUATION MODEL (SEM)-PARTIAL LEAST SQUARE (PLS)

JUMINTEN ◽  
2021 ◽  
Vol 2 (3) ◽  
pp. 95-106
Author(s):  
Santi Wulandari ◽  
Dira Ernawati
Keyword(s):  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Structural Model ◽  
Measurement Model ◽  
Equation Model ◽  
Partial Least Square ◽  
Least Square ◽  
Model Fit ◽  
Inner Model

Dengan meningkatnya pertumbuhan dunia industri berimplikasi pula dengan meningkatnya permintaan pasar akan suatu produk yang diinginkan. Perusahaan selaku salah satu pelaku kegiatan di sektor industri dituntut untuk bisa mempertahankan produk di pasaran serta terus berinovasi dalam strategi dan integrasi yang baik dari tiap sektor. PT. Semesta Mitra Sejahtera Cabang Sidoarjo adalah perusahaan yang berfokus di bidang peternakan (farm) ayam pullet yang peternakannya tersebar di berbagai daerah di Jawa Timur. Diketahui bahwa di perusahaan ini seringkali terjadi perubahan kebijakan mendadak terkait proses pemeliharaan ayam pullet di peternakan. Dikarenakan lokasi farm yang tidak dalam satu daerah, perusahaan mengalami kesulitan dalam penyampaian informasi untuk secara efektif terkait penerapan kebijakan baru terhadap farm. Dari latar belakang diatas, peneliti ingin mengetahui bagaimana pengaruh manajemen rantai pasok terhadap kinerja perusahaan dengan menggunakan SEM-PLS dengan tahap pertama yaitu Evaluation of Measurement Model yang dilakukan dengan Uji Validitas dan Uji Reliabilitas. Uji Validitas dilakukan dengan dua tahap yaitu Convergent Validity dan Discriminant Validity. Uji Reliabilitas dilakukan dengan dua tahap yaitu Composite Reliability dan Cronbach’s Alpha. Tahap kedua yaitu Evaluation of Structural Model yang dilakukan dengan suatu pengujian yang dinamakan Inner Model Test yang dilakukan dengan lima langkah, yaitu R-Square hingga Model Fit

scholarly journals Validity and Reliability of Adapted Self-Efficacy Scales in Malaysian Context Using PLS-SEM Approach

2021 ◽  
Vol 11 (11) ◽  
pp. 676
Author(s):  
Najah Hazirah Mohd Dzin ◽  
Yoon Fah Lay
Keyword(s):  
Self Efficacy ◽  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Study Data ◽  
Partial Least Square ◽  
Least Square ◽  
Validity And Reliability ◽  
Specific Domain ◽  
Average Variance

Self-efficacy scales have been used widely across curriculum and demographic structures, while retaining their objectivity in a specific domain. This pilot study aimed to test the validity and reliability of adapted scales that incorporated four sources of self-efficacy (mastery experiences, vicarious experiences, social persuasion, and emotional and physiological states), as well as science self-efficacy in the Malaysian context. A total of 109 students participated in this study. Data were analyzed through confirmatory factor analysis (CFA), by using the partial least square structural equation modelling (PLS-SEM) approach. The reliability criteria were determined through outer loading and composite reliability (CR). The assessment of convergent validity was performed using the average variance extracted (AVE), while the discriminant validity of this instrument was confirmed using the heterotrait–monotrait criterion (HTMT), along with the bootstrapping procedure. The CR values were at a satisfactory level, and two indicators were eliminated (PM3 and PMPR6) to improve the AVE values of the construct. All the values were assessed in the HTMT criterion, along with the confidence intervals in the range recommended to prove discriminant validity. The assessment of validity and reliability, through PLS-SEM, indicated that the scales used in this study are valid and statistically reliable.

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