Can a direct effect be greater than one with plsc?

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jsegarra
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Joined: Fri Sep 26, 2014 5:58 am
Real name and title: Jose Ramon Segarra

Can a direct effect be greater than one with plsc?

I obtained all the values of direct effects with pls (these values are between 0 and 1). But if I use plsc, one of them is greater than one (1.10) and there are other direct effect that it is negative (-0.26)

cringle
SmartPLS Developer
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Real name and title: Prof. Dr. Christian M. Ringle
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Re: Can a direct effect be greater than one with plsc?

PLSc is a little bit tricky. Only use it if you have a data set that is large enough (e.g., a sample size > 300) and reflective measurment models with many indicators (e.g., more than 3) and high loadings of all indicators (e.g., >0.7 better >0.8). Then, you should not obtain odd outcomes. Otherwise, there always is a possibility to get outcomes as described by you.

Best
CR

jsegarra
PLS Junior User
Posts: 2
Joined: Fri Sep 26, 2014 5:58 am
Real name and title: Jose Ramon Segarra

Re: Can a direct effect be greater than one with plsc?

Thanks, I think I have the solution with your support.

The problem was in the number of reflective indicators because the sample contains 281 observations. My model has three second order factors (value, brand and relationship) as antecedents of loyalty. Value for example, has three dimensions or first order factors: functional, emotional and social.

When I applied the dimensions from method of the two-step as indicators (Wright 2012: latent variable scores), then PLS estimators were between 0 and 1, but they were very different in PLSC (value was greater than 1, brand was zero and relationship was negative).

However, if I apply all original indicators of the dimensions corresponding to each one of the three second order factors, then PLSC estimators are between 0 and 1 and they are very similar to PLS too.

But now I have other problem: I don't have a second order model with PLSC and some indicators with individual fiability are lower than 0.707.

cringle
SmartPLS Developer
Posts: 815
Joined: Tue Sep 20, 2005 9:13 am
Real name and title: Prof. Dr. Christian M. Ringle
Location: Hamburg (Germany)
Contact:

Re: Can a direct effect be greater than one with plsc?

Hi

2nd order models do not work with PLSc.

Best
CR

lplotnick
PLS User
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Joined: Mon Jun 15, 2015 10:38 am
Real name and title: Dr. Linda Plotnick

Re: Can a direct effect be greater than one with plsc?

Will it ever be possible to use PLSc with models that have 2nd order formative constructs?

I have a model for which there are some problems with multicollinearity so I would like to use PLSc but I have 2 formative constructs which are predictors. I want to be able to use Gaskin's 2 step approach for PLS (use latent variable scores) but, although I can do this in the regular PLS, I cannot in PLSc. Is there a solution? I apologize for showing my ignorance in this question.

Thanks,
Linda

jmbecker
SmartPLS Developer
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Joined: Tue Mar 28, 2006 11:09 am
Real name and title: Dr. Jan-Michael Becker

Re: Can a direct effect be greater than one with plsc?

If you want to do a two-step approach, you can use the latent variable scores from the first step of a normal PLS and then use PLSc only for the second step. That should work quite well.

However, I don't understand why PLSc should be advantageous when you have multicollinearity in your model.
Dr. Jan-Michael Becker, University of Cologne, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker