VIF values

[Ingrid Snijders]

What does it mean when the inner and/or outer VIF values are to high? How to report and does it mean that the measurement model is insufficient and therefore bootstrapping the model as is, is not appropriate? Looking for an answer. Thank you!

[jmbecker]

Inner model: High VIFs can pose a problem in terms of finding significant relations and also in terms of biased standardized estimates.

Outer model: You need to differentiate between reflective and formative measures. For reflective measures, high VIFs are not a problem. In fact, for reflective measures high VIFs are good, because indicators should correlate highly. For formative measures, the same problem as for inner models apply. In addition, high VIFs in formative measure indicate measurement model problems as indicators should represent different aspects of the construct and therefore (ideally) not correlate.

[Ingrid Snijders]

Dear Dr. Becker,

Thank you very much for your reply! Fortunately it is about reflective measures, so it sure seems alright.

-Ingrid