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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)
... Basic statistical analysis and R2-based data normality tests are needed to evaluate the model's fitness. Table 6 shows that the three core components of UTAUT -social influence, effort expectancy, and performance expectancy -explain 55.2% of the variations in social media adoption for business purposes, indicating a moderate relationship (Chin, 1998). Social media adoption for business, attitude toward digital entrepreneurship, and entrepreneurship education explain 50.9% of technology-based entrepreneurship behavior variations with moderate effect (Chin, 1998). ...
... Table 6 shows that the three core components of UTAUT -social influence, effort expectancy, and performance expectancy -explain 55.2% of the variations in social media adoption for business purposes, indicating a moderate relationship (Chin, 1998). Social media adoption for business, attitude toward digital entrepreneurship, and entrepreneurship education explain 50.9% of technology-based entrepreneurship behavior variations with moderate effect (Chin, 1998). ...
Technology and the internet have altered business activities by enabling organizations to reach customers, develop markets, enhance profitability, and raise brand awareness. With 167 million social media users, Indonesia’s internet economy provides numerous entrepreneurial possibilities; however, just 0.43% of entrepreneurs are technology-based. This demonstrates the need for digital entrepreneurship education and effective social media use, particularly among tech-savvy college students. The present study aims to examine the effects of social media utilization, digital entrepreneurship education, and attitude toward digital business on the technology-based entrepreneurial behavior of Indonesian university students, using the frameworks of the unified theory of acceptance and use of technology and the theory of planned behavior. This study employs quantitative research using a non-probability sampling method with a judgmental technique, focusing on 391 university students engaged in entrepreneurial activities using social media. The study employed SmartPLS to analyze the research data. The results indicate that social influence, work and performance expectations, and attitude toward digital entrepreneurship positively influence the use of social media for technology-based entrepreneurial activities. Moreover, the paper unveiled that the provision of digital entrepreneurship education and the utilization of social media for commercial purposes had a beneficial influence on behavior that is predisposed toward technology. The present study demonstrates that the adoption of social media functions as a mediator in the association between digital entrepreneurship education and the adoption of social media, therefore exerting an impact on technology-based entrepreneurial behavior. AcknowledgmentsThe research team would like to thank the Ministry of Education, Research and Technology of the Republic of Indonesia for providing funding for the research program based on Decree number 0667/E5/AL.04/2024 with university internal decree number: 0038-RD-LPPM-UMN/P-HD/VI/2024, and Universitas Multimedia Nusantara for supporting the implementation of this investigation.
... As discussed earlier, this study aims to examine the e-customer satisfaction as a mediator variable that links between e-service quality as an independent variable, and e-customer loyalty as a dependent variable. To be able to obtain valid and reliable results, this study followed the two steps approach of reporting PLS results as suggested by (Chin, 1998). Therefore, the process was to confirm the construct validity before proceeding to test the hypothesis. ...
... According to Hair et al., (2010), Chin (1998) that in order to confirm the content validity of the measurement model, researchers could use factor loading of the item. Particularly, in order to measure a particular construct, all items should be loaded highly on the construct, which they were deliberately constructed to measure. ...
... Olmedo Noguera, C. N., Vela Reyna, J. B., & Ibarra-Cisneros, M. A. E-commerce y la dinámica del cliente en México: análisis de factores clave para optimizar la compra | 1-18 Con respecto a la R2, es importante mencionar que este coeficiente representa el porcentaje de varianza explicado por el modelo para cada variable dependiente, lo que indica que también los datos se ajustan al modelo, y su función es evaluar la capacidad predictiva del mismo (Chin, 1998;Cohen, 1998;Hair et al., 2017). Los datos de las cargas factoriales estandarizadas en el modelo mostraron que todos los ítems presentaron una confiabilidad individual superior a λ > 0.707, como lo recomienda Hair et al. (2017). ...
... Este método sirve para evaluar si el modelo es útil para predecir los resultados de cada variable. Los valores obtenidos, llamados Q2 (también conocido como Stone-Geisser Q2 en honor a sus autores), son superiores a 0, lo cual es considerado como un indicador positivo según los autores que desarrollaron este método (Chin, 1998;Geisser, 1974;Ruiz et al., 2009;Stone, 1974), indicando que los resultados son significativos. ...
El objetivo del estudio fue analizar la relación entre variables como conveniencia, confianza, seguridad, satisfacción del cliente y experiencia del usuario con la intención de compra en e-commerce, así como explorar su optimización para mejorar la experiencia de compra en línea. La metodología fue cuantitativa transversal donde, por medio de una encuesta electrónica aplicada entre 2022 y 2023, se obtuvieron 2085 datos de personas en México y posteriormente se analizaron mediante un modelo de ecuaciones estructurales. Los resultados revelan una correlación entre experiencia del usuario y lealtad del cliente, destacando la seguridad en la promoción de la confianza y satisfacción. Aunque el estudio se centró en México, sus hallazgos sugieren que mejorar la experiencia del usuario y seguridad puede incrementar la lealtad e intención de compra. La literatura respalda la adopción masiva del e-commerce a nivel mundial, impulsada por su conveniencia y diversidad de opciones. El modelo integral de este estudio permite identificar factores clave para optimizar estrategias de e-commerce.
... To validate the study hypotheses and interpret if the proposed model is appropriate, the coefficient of determination R 2 , which is shown in three forms of predictability; 0.10 = weak; 0.33 = moderate; 0.67 = substantial was computed as suggested by Chin (1998). The study's R 2 outcome of 0.541 indicates that EO accounts for 54.1% of the variance in the SCR, hence falling within the moderate range. ...
The increasing supply chains disruptions globally often leave many businesses and SMEs vulnerable. The question is whether entrepreneurial orientation of SMEs will make them more resilient to supply chain disruptions. With limited research on the relationship between entrepreneurial orientation and SMEs’ supply chain resilience (SCR) this study seeks to extend our knowledge in that respect. Grounded on the resource-based view and dynamic capabilities theory, this study examined the influence of entrepreneurial orientation on the supply chain resilience of SMEs. Five constructs of entrepreneurial orientation were adapted from literature. A cross-sectional study was employed wherein an online questionnaire was used to collect data from a sample of 173 SMEs owners/or managers. Structural equation modelling (SEM) with partial least square (PLS) technique was used to test the hypothesised model. The overall findings point towards the significant influence of EO on the SCR of SMEs as evidenced by the significant positive effect of innovativeness, risk-taking, pro-activeness and competitive aggressiveness, and autonomy dimensions of entrepreneurial orientation. These results imply that it is critical that SMEs adopt an intentional entrepreneurial oriented management philosophy which can be fostered in several ways including the promotion of a flexible organizational culture that promotes and rewards innovativeness among SME employees, and collaborative efforts between SME owners/managers and policy makers on risk management awareness and competitive aggressiveness literacy and training campaigns.
... Three primary evaluation criteria for the structural model: the R² measure for the Fig. 5. Results of assessment of structural model endogenous constructs, the predictive relevance of the model (Q 2 ), and the level and significance of the path coefficients were conducted (Chin, 2010;Hair et al., 2011). Chin (1998) suggested that values of 0.67, 0.33 and 0.19 as measures of R 2 to be considered substantial, moderate, and weak respectively. The R 2 value of the endogenous construct in this study was 0.377 (See Fig. 3); therefore, this value was considered moderate and acceptable. ...
ARTICLE INFO ABSTRACT A Graduates' marketable skills have now become the major key of success in today labor market and have increasingly concerned by employers around the globe. This study aimed to examine the effect of Yemeni graduates' marketable skills on their perceived marketability in the Arab Gulf countries labor market. Graduates' marketable skills was assessed by way of a multi-dimensional scale which was inclusive of seven dimensions of skills: analytical thinking and problem solving skills, continuous learning and information management skills, communication skills, entrepreneurship skills, information technology application skills, leadership and management skills, and teamwork and interpersonal skills. Participants were 85 Yemeni graduates at public and private universities. The data was analyzed using Partial Least Squares-Structural Equation Modeling. The findings showed a significant positive effect for graduates' marketable skills on their perceived marketability. The study results also demonstrated the acceptability of marketable skills as an integrated construct formed by the dimensions identified. This study make a significant theoretical and methodological contribution to both the graduates' marketable skills on their perceived marketability by assessing marketable skills as an integrated reflective construct and by examining the overall marketable skills of Yemeni graduates on their perceived marketability. Copyright©2017, Fatihya Mahdi Ahmed Ali et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
... The coefficient of determination (R 2 ) quantifies the variation in the endogenous variable that is explained by the independent variable constructs [100]. Chin [101] demonstrated that R 2 values of approximately 0.19, 0.33, and 0.67, are generally considered as indicating weak, moderate, and substantial relationships, respectively. In the current study, the adjusted R 2 values for telepresence, focused attention, time distortion, and tourists' behavioral intention are 0.555, 0.646, 0.488, and 0.789, respectively, indicating that the structural model has a strong prediction ability for these constructs. ...
Tourism advertising and tourism promotion have over the years been the core functions of tourism departments and major tourist sites. In relation to the progressing development of new media, the mobile short-form videos, which are short, focused, and have an engaging content, appear to be a useful means of advertising tourist destinations. In the digital era, short videos have become a new communication tool between destinations and consumers. This current study, based on the S-O-R model and flow experience, investigated the psychological processes through which TikTok attributes and technology evoke flow and lead to tourists’ behavioral intention. Moreover, the TAM, i.e., PU and PEOU, as two technology factors, as well as three content attributes (entertainment, informativeness, and interactivity) were examined. The study utilized a quantitative approach and collected data from 412 respondents in China. The authors adopted the PLS-SEM method to confirm the directions hypothesized in this model. There are significant effects of PU, PEOU, and entertainment on flow experience (telepresence, time distortion, and focused attention). Interactivity impacts telepresence and time distortion, while informativeness impacts focused attention. Moreover, time distortion and focused attention impact tourists’ behavioral intention. The results highlight several limitations and offer implications for future research as well.
... Although each path coefficient should be significant, the value of the R 2 coefficient is highly dependent on the field of study. Chin [83] suggests values of 0.67, 0.33 and 0.19 as, respectively, substantial, moderate and weak measures of R. In behavioral studies, a value of 0.2 for R 2 is generally considered acceptable [84,85]. ...
The leadership literature suggests that a servant leadership style can reduce negative employee outcomes, even in challenging work environments such as the educational sector, where teachers play a key role in social development. This research aimed to evaluate the effect of servant leadership on work happiness and organizational justice. An explanatory study was carried out including 210 men and women who declared that they perform teaching activities, aged between 21 and 68 years (M = 38.63, SD = 10.00). The data were collected using a self-report scale of servant leadership, work happiness and organizational justice, obtaining an adequate measurement model (α = between 0.902 and 0.959; CR = between 0.923 and 0.963; AVE = 0.604 and 0.631; VIF = between 1.880 and 2.727). The theoretical model was evaluated using the Partial Least-Squares PLS-SEM method. According to the results, the hypotheses were confirmed, demonstrating that there is a significant positive effect of servant leadership on work happiness (β = 0.69; p < 0.001) and organizational justice (β = 0.24; p < 0.001) and a positive effect of work happiness on organizational justice (β = 0.61; p < 0.001). This research provides valuable insight for educational leaders seeking to improve perceptions of happiness and justice in their organizations and promotes servant leadership to achieve this goal.
Employees implement alterations to their work responsibilities, termed "job crafting." Based on this phenomenon, this research assesses the impact of skill diversity, a component of work characteristics, on employee job crafting. It examines the influence of employee readiness and external resources, such as job security, autonomy, and feedback, on job design. The research aims to understand the interaction and influence of these factors on workers' job-crafting behaviors. The present study investigated the relationships among several aspects within the IT sector. A random sample of 350 workers was collected using an online questionnaire for data analysis utilizing probability sampling. Data analysis has been conducted using SPSS 26 and Smart PLS 3.0. This research enhances our comprehension of employee work customization by illustrating a correlation between the Job Characteristics Model (JCM) and job crafting. It indicates that people are optimally positioned to choose their job alterations and that job attributes influence this process. This study investigates the relationship between the Job Characteristics Model (JCM) and job crafting, which has yet to be extensively studied. By incorporating social support as a variable and utilizing expert data, this study offers a fresh perspective, distinguishing it from most research that primarily depends on employee data. This method provides new perspectives in the field.
Enhancing employee performance involves setting clear expectations and providing continuous feedback. It is essential to create a positive workplace. This study creates the necessity of performance appraisal activities to improve employee performance and achieve organizational goals. It investigates the impact of performance appraisal on employee performance in Higher Education Institutions (HEIs) in Sindh, Pakistan. Structural Equation Modeling (SEM) was employed using SmartPLS to analyze the relationships between variables. It includes Performance Appraisal, Organizational Commitment, Job Involvement, and Employee Performance. A sample of 127 participants was selected from various HEIs in Sindh, Pakistan. The findings reveal a significant mediating effect of organizational commitment and job involvement on the relationship between performance appraisal and employee performance. On the other hand, effective performance appraisals enhance employee performance when supported by strong organizational commitment and job involvement. It includes recommendations that hold valuable knowledge and implications for executive bodies and policymakers of HEIs.
Sharia banking has been established in Indonesia for approximately 33 years, but its market share is still very small, namely around 7.21% of total commercial bank assets. This study aims to explain the effect of Islamic Financial Literacy, Attitudes and Perceptions of Finance on Interest in Using Islamic Banking Services with Religiosity as a Moderating Variable in Sharia Economics Students in Region 3 Cirebon. Quantitative research with purposive sampling data collection with 100 respondents. The data obtained was analyzed using SEM-PLS version 3.0 software. The results showed that Sharia Financial Literacy and Financial Attitudes did not have a significant effect on interest in using Islamic banking services, this was due to several factors including the lack of maximum Islamic financial literacy carried out so that it has not fostered understanding among students, as well as the financial attitudes of students, especially in region 3 Cirebon, have not reached the stage of making the right decisions in planning and managing their finances. While perceptions have a significant effect on interest in using Islamic banking services, this is influenced by information obtained from unpleasant past experiences related to conventional finance, news that develops about Islamic finance and the values adopted in the environment where they study. Religiosity cannot moderate Islamic Financial Literacy, Financial Attitudes, and Perceptions of Interest in Using Islamic Banking Services, this is because the value of religiosity used as a benchmark by students is still focused on matters of worship, but has not expanded to matters of muamalah.
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.