Permutation MICOM test

Questions about the implementation and application of the PLS-SEM method, that are not related to the usage of the SmartPLS software.
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SmartPLS3
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Joined: Thu May 11, 2017 9:54 pm
Real name and title: Mr. Frederick Dayour

Permutation MICOM test

Post by SmartPLS3 »

Hello! I need your kind support. Please I am running a permutation test of group differences in structural estimates in my model. But some how, I am unable to see from previous works especially the one by Henseler et al (2016) the p-Values for the significance test. At what point can I say the test statistic is significant or otherwise for the permutation test? May I also be guided on the cut-off points at which the MICOM results for steps 1 and 2 are significant in terms of P values. How about the permutation test on group specific differences in the structural relationships?

Thank you
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cringle
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Real name and title: Prof. Dr. Christian M. Ringle
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Re: Permutation MICOM test

Post by cringle »

We do not use p values much in reporting but confidence intervals. If an original value falls out of the 95% confidence intervals (2.5% is the lower bound, 97.5% is upper bound), the result is significantly different.

That's what you do not want with MICOM. In Step 2, you do not want to have a value that is significantly lower than 1 (here 1 always is the upper bound and you look for the 5% lower bound below one to check if the original results falls into the confidence interval); in Step 3 you do not like to see that a value is significantly different from zero (here you check if the original value falls into the 95% confidence interval where 2.5% is the lower bound and 97.5% is upper bound).

Best
Christian
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