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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)
... It is also agreed by other researchers that manifest variables with outer loading that is 0.7 or higher are considered highly satisfactory (Gotz et al., 2010;Henseler et al., 2009). However, items with a loading of higher than 0.5 are also acceptable, and if it is lower than that, they should be dropped from the study (Chin, 1998;Hair et al., 2010). The other minimum level of loading suggested is 0.4 (Hulland, 1999). ...
... Meanwhile, 0.50 and 0.25 can be considered moderate and weak, respectively (Hair et al., 2011;Henseler et al., 2009). However, the benchmark stated by Chin (1998) is lower than the previous researchers, which are 0.67, 0.33, and 0.19 will be considered substantial, moderate, and weak, respectively. ...
The rising corporate scandals caused by unethical accountants have concerned various parties, especially the stakeholders. These scandals, whether in public or private sectors, will impact the economy and reputation of a country. Therefore, the role of ethical accountants in providing reliable information for decision-making is a very crucial and should be addressed seriously. Thus, the education sector is believed to be one of the ways to produce graduates with good technical skills, knowledge, and high morality to make the best judgement for society. The research is conducted to assess the influence of accounting ethics education (ethics courses and teaching styles) on the ethical behaviour of accounting graduates in Malaysia. This study uses questionnaire which distributed to accounting graduates from MIA-accredited universities. 70 usable responses were received and PLS-SEM is used to analyse the data. This study found that teaching styles used in teaching ethics courses have a positive and significant relationship on the ethical behaviour of accounting graduates in Malaysia. However, ethics courses offered in the accounting program at the university was found not be significant. thus, it is suggested that lecturers need to use various methods of teaching in delivering ethics courses to enhance the ethical behaviour of accounting graduates in Malaysia.
... The study model consists of two mediator variables Digitalization and Functions. The mediators are intermediate variables that increase or decrease the effect of the independent variables on the dependent variable [110], which means that a third mediator variable intervenes between the two other related constructs. In the study model, Functions mediates the relationships between ...
... The determination of R2 for the constructs demonstrates a moderate fit of the model for the variables Functions and Benefits, and a weak fit for Digitalization [110]. The R2 for Digitalization is 0.272, which means that the proposed model explains 27.7% variance of the variable, while respectively for the variables Functions it is 43.3% and Benefits 51.5%. ...
The objectives of this article are to examine whether the application of digitalization in enterprise budgeting affects the fulfilment of budgeting functions and their qualitative characteristics, and to investigate whether the realization of budgeting functions brings benefits. The research was conducted from the perspective of contingency theory, both internal and external conditions. The study used an online survey targeting company budgeting staff. Structural Equation Modelling was utilized to validate the structural model (PLS-SEM technique). The conclusions confirm that the application of digitalization, which particularly pertains to ERP, Business Intelligence systems and accounting systems with budgeting solutions, positively impacts the fulfilment of budgeting functions and most of their qualitative characteristics, while Blockchain makes a minor contribution. Our research suggests that contingency variables, particularly internal ones such as company size, the quality of the organizational structure, and support for competitive strategy, continue to affect budgeting implementation even with the participation of digitalization in budgeting. Budgeting functions and their qualitative aspects are notably correlated with the advantages derived from budgeting, including financial performance, sustainable development and budget task execution.
... Tamén se inclúe a validez discriminante (diagonal). A Táboa 2 mostra unha segunda validación do modelo mediante as comprobacións suxeridas por Chin (1998). Realízanse as seguintes análises para verificar a solidez de todas as variables: (1) Confiabilidade composta (CFC). ...
El sector eléctrico colombiano necesita un estilo de dirección ético asociado con un clima laboral que apoye sus principios. Además, la autoeficacia determina la voluntad creativa individual y el compromiso no siempre tiene una función integradora. Por eso, esta investigación busca analizar la relación entre liderazgo ético y clima benevolente a través de la mediación de la autoeficacia creativa y la doble moderación del compromiso de continuidad. Para ese fin se utiliza un modelo condicional. La muestra es de 448 empleados. El liderazgo ético construye un hábitat de autonomía y confianza que deriva en autopercepciones de autoeficacia creativa. Asimismo, dimensiones de la personalidad como apertura a la experiencia, escrupulosidad y extraversión normalizan la función mediadora de la autoeficacia creativa respecto al liderazgo ético y un clima benevolente e incluye a las tres variables. Por último, el compromiso de continuidad favorece la insatisfacción laboral, el agotamiento emocional y la incapacidad personal lo que detiene el comportamiento dinámico que necesita la autoeficacia creativa y al mismo tiempo interrumpe las relaciones prosociales que unen al líder ético con un clima benevolente.
... This study therefore uses PLS-SEM by using the descriptive analysis, multicollinearity test, and Cronbach's test for several reasons, with the top one being that structural equation models are superior to other models in their estimation, and this holds true for regressions mediation assessment (Hayes 2013). The robustness of the model is supported by the provision of measurement error and accurate mediating impacts estimates (Chin 1998). ...
This study aims to provide an understanding of the impact of professionalism theory constructs on the applicability of forensic accounting services, as well as reviewing the obstacles to implementing the profession of forensic accounting through a literature review. The accounting side of the study explores the profession of forensic accounting and the sociological side of the study will focus on professionalism theory, more specifically Pavalko's 1988 model. A quantitative method was used in this study; 154 questionnaires from Certified Public Accountants (CPAs) were validated and used in the data analysis. Data analysis was conducted using SmartPLS, which was used for testing the study's hypotheses. The results demonstrated that the professionalism theory constructs have a significant impact on the applicability of forensic accounting services. There was an indication that six out of eight constructs had a positive impact, which are, code of ethics, commitment, intellectual technique, motivation, training, and relevance to social values, leaving only autonomy and sense of community with no impact shown. This study recommends that forensic accountants and practitioners contribute to developing the profession of forensic accounting and to provide services with high quality. The study's significant constructs can inform the development of training programs for aspiring forensic accountants in Jordan, emphasizing ethics, commitment, technical expertise, motivation, training, and social values. These findings may also apply to other countries.
... Moreover, this study progressed with the analysis of the model"s predictive relevance based on Stone-Geisser"s Q 2 . The model is said to have predictive relevance if it produces a value of Q 2 that is above zero (Chin, 1998). However, to facilitate the interpretation, the values of 0.25, 0.50 and 0.75 are respectively considered as small, medium and large Q 2 (Hair et al., 2017). ...
The transformation of schools toward educational excellence involves the intervention of school authorities. In line with the Pelan Pembangunan Pendidikan Malaysia (PPPM) 2013-2025, the Frog VLE platforms were implemented in Malaysia as a mega-investment to connect over 10,000 elementary and secondary schools, covering over 5 million students, 500 000 teachers, and 4.5 million parents nationwide.Despite this development, usage of this platform is still quite low. In this regard, a multi-group analysis was conducted to evaluate the school authority's support in determining teachers' continued intention to use VLE platforms in primary schools. A mix of methods was used for this study. In the northern area of peninsular Malaysia, 96,748 teachers are overseeing a total of 7,418 schools. Consequently, more than 384 teachers should be included in the sample size for this study (Krejcie& Morgan, 1970) and (Salkind, 2010). For data collection, simple random sampling was applied. Based on the determined sample size, 85 schools were carefully chosen using the random calculator. From every school, ten teachers were picked as respondents. This generated 850 of the sample (85*10 = 850). Seven hundred nineteen were returned or about 84.0% response rate out of 850 distributed questionnaires. Analysis was carriedout through PLS-SEM measurement and structural analyses as well as the Multi-Group Analysis (PLS-MGA). The results showed high school authority support at mean = 3.82 and standard deviation = 0.29. The findings also found a significant correlation between the support of school leaders and the willingness of Islamic education teachers at r = 0.37. Hence, it is recommended that school leaders increase the encouragement level through motivation, monitoring and activating the Islamic Education teachers to use Frog VLE frequently so that this application will be consistent and expanded.
... 80.26% of 565 replies were sufficient for data processing, indicating sufficient survey research. This study's sample size is sufficient to yield valid SmartPLS (PLS-SEM) results and follows the "10 times rule of thumb, " which stipulates that the minimum sample size is ten times the research model's most complex interactions [15]. Table 2 shows the respondents' demographic profiles. ...
The study investigates the impact of user-generated content (UGC) and micro-celebrity posts on the online purchasing behavior of Generation Z on social networking sites. In addition, the mediator function of the user's search intent is investigated. Thus, sponsored ads employ moderation. To collect primary data, self-administered questionnaires and cross sectional studies were applied. The population is comprised of university students of Generation Z from Dhaka, Bangladesh. Systematic random sampling was used to select Generation Z members from six institutions in the city of Dhaka. Using convenience sampling, primary data were collected. The research yielded 565 standardized questionnaire samples. The study's findings demonstrated that user-generated content's direct, indirect, and mediation relationships were statistically significant. Moreover, the direct and indirect relationships of micro-celebrity posts were found to be statistically significant, but the mediation relationship was found to be insignificant. Additionally, users' search intention has a strong correlation with online purchasing behavior. Thus, the moderation analysis of sponsored ads was deemed crucial. In Bangladesh, the stimulus-organism-response (S-OR) paradigm is rarely applied to studies on the online purchasing preferences of Generation Z consumers. This study also examined its findings' implications for future research and limitations.
This study aims to analyze the influence of biogeophysical aspects, economic aspects, location aspects, socio-cultural aspects, institutional aspects, and environmental aspects on water supply and clean water demand in Medan City.The data used in the study are secondary and primary data obtained from relevant agencies and communities in Medan City. Secondary data were obtained from 1990 - 2012, and primary data were obtained from 30 respondents. The analysis model used is the Structural Equation Model (SEM) Lisrel PLS (Partial Least Square), the decision-making model or Analysis Hierarchy Process (AHP) model, and the strategic planning model or Strengths Weaknesses Opportunities Threats (SWOT) model. The results showed that: biogeophysical aspects have a positive and significant effect on water supply and clean water demand
Previous studies link Instagram contents with impulsive buying behavior, by passing evaluation stages in buying process. This study aims to fill this gap by considering the consumer behavior process leading up to the emergence of purchase intentions. specifically, this research will examine the relationship between firm-created contents and user-generated contents with the purchase intentions of Gen Z consumers towards Erigo, while considering brand awareness, brand attitude, and belief in global brand citizenship. SEM-PLS analysis was conducted on 135 sample respondents through an online questionnaire, using the purposive sampling technique. This study resulted in two findings: (1) firm-created contents positively influences belief in global brand citizenship, consequently, positively affects Gen Z consumers' purchase intentions towards the Erigo brand, (2) user generated contents positively influences brand attitudes and beliefs in global brand citizenship, both of which, consequently, positively affect Gen Z consumers' purchase intentions towards the Erigo brand.
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.