Categorical IV?

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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bi@nc@
PLS Junior User
Posts: 3
Joined: Fri Jul 22, 2016 9:30 am
Real name and title: bianca harms

Categorical IV?

Post by bi@nc@ »

Dear all,
I am new to SEM as well as the PLS-software. Whereas I understand the basics now, I am currently encountering problems with understanding how to analyse data including a categorical IV (2 groups). So I want to see what the effect is on 4 latent constructs (continuous) which in turn affect a behavioural construct (continuous). Who knows how to approach this with smart-pls? PLS-MGA does not work as the categorical IV is in the model.
I hope someone can help me out with this problem or can refer me to papers with a similar model/experimental data using smart-pls.
Thank you in advance!
Best,

Bi@nc@
jmbecker
SmartPLS Developer
Posts: 1284
Joined: Tue Mar 28, 2006 11:09 am
Real name and title: Dr. Jan-Michael Becker

Re: Categorical IV?

Post by jmbecker »

Just use a dummy variable for your categorical variable in your model. It is almost the same as in regression, but you have to be careful with the interpretation as you are getting standardized estimates, which are not straightforward to interpret for dummies. Yet, you can unstandardized the effects and should get what you want.

Multi-Group analysis is like using your dummy in a moderation (interaction term). You would expect that the effect of the other variables changes based on your grouping (experimental manipulation). Whereas including the dummy implies that you are expecting a change in the mean of your variables.
Dr. Jan-Michael Becker, BI Norwegian Business School, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
GoogleScholar: http://scholar.google.de/citations?user ... AAAJ&hl=de
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