lower outer loadings

[toshali]

Dear all,

In my reflective model, considering outcomes from two different perspectives (source and recipient of knowledge) with the same number of observed variables, outer loadings of source are consistently low for all constructs (below 0.5). What can be the significance of such findings?

Note: I have run the model with the same number of observed variables for each perspective separately and combined the scores to form a final model.

I would appreciate any advice you all might have.


Thanks,
Toshali

[rohit315]

Basically it means that your construct (assuming its reflective model), does not explain even 16% of the variance in the indicators or vice-versa. Thus, your construct is not able to substantially explain the variance, which it would if outer loadings were > 0.7 (In that case r square would be just about 0.50, indicating that your construct explained approximately half of the indicator variance).

Thats why 0.7 is recommended.

Hope that helps.