Communalities, AVE for 2nd order construct

[Carmen Chu]

Hi Expert,

I read your post regarding the calculation of the communalities, AVE for second order factor (with reflective 1st order construct). However, I have some question about it. Does it apply to Reflective-Reflective construct?

Quote:
viewtopic.php?t=288

Hi,

if we have the LV_2nd with 3 reflective LV_1st, with these loadings:
LV1 ==> 0.6
LV2 ==> 0.7
LV3 ==> 0.8

The communalities will be:
LV1 ==> 0.6^2 = 0.36 = 36% (variance of the LV1 explained by the LV_2nd)
LV2 ==> 0.7^2 = 0.49 = 49%
LV3 ==> 0.8^2 = 0.64 = 64%

The AVE will be: (0.36+0.49+0.64)/3 = 0.49666 = 40.6%

end of quote.

I am a bit confused. What exactly do you mean by loadings? Because as in my case, I have a Type 1 construct (reflective-reflective), when I developed the final model with all the constructs (5 reflective exogenous contruct, one Reflective-Reflective endogenous/exogenous construct, three reflective endogenous constructs). I only have the outer loadings for MVs for each construct. Does it mean to calculate LV-2nd AVE and commualities, I will need to use that outer loadings? But there will be more than one loading from each LV-1st. Please advise what to do?

Thanks!

[Diogenes]

Hi,

It is simplier:
- the relations between 2nd order LV and their 1st order LV are "measurement", for this reason, these relations should be interpreted as "outer loadings" or "factor loadings".

- but the report of SmartPLS (and others softwares) will include these relations in the path coefficient report.

Best regards,
Bido

[Carmen Chu]

Thanks. I understand that the "outer loading" or "factor loading" can be found in the PLS algorithm report. So to confirm my understanding, in order to calculate the AVE n communality for my LV-2nd, I will use these loadings? But I also noticed that these values are included in the PLS algorithm report together with the values for the LV-1st, does it mean that I still have to calculate these values or simply use those in the report?

Thanks!

[Diogenes]

Hi,

AVE and CC for the 2nd order LV, ou will have to compute by hand.

The "factor loadings" are in the report, but you should copy them from the path coefficients report.

Best regards,
Bido

[Carmen Chu]

So path coefficient report is the report from PLS algorithm => calculation results then Path coefficients? Once got those loadings, I can use the formula below as you stated to calculate the LV-2nd AVE and CC.

Thank you and really appreciated!