Path Coefficient for Indirect effect <1 but significant

[Tabinda]

Hi

I need to know that I am running a model where path coefficient for the indirect effect ate coming to be 0.091; 0.070, 0.064 but they are all significant. How should I interpret it. As I have read that beta should be at least .1 and above ...is it only for smart pls ...Please help me in interpreting these results.


Thanks

[jmbecker]

There is a difference between statistical significant (i.e., high probability that the effect is different from zero and thus the observed effect just because of random chance) and a substantial effect (the variable has practical relevance in explaining the target construct). For the second, you usually look at the contribution to R² (or the f-square effect size) or the size of the standardized effect.
You can have an effect which is statistical significant (i.e., different from zero), but not very large / not substantial (and thus probably not practically relevant). What is substantial is often defined by your area of research and the nature of your variables.