T-statistic difference in Path Coefficient and Outer Loading

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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rizka.khairunnisa
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Real name and title: Rizka Khairunnisa, S.ST

T-statistic difference in Path Coefficient and Outer Loading

Post by rizka.khairunnisa »

If we do bootstrapping, we can see T-statistic value in Path Coefficient and in Outer Loading tab. What are the differences between them?
Based on literatures I read, T-statistic value in Path Coefficient describes whether the the hypothesis is rejected or accepted. Then, what are described by the T-statistic value in Outer Loading?

Thank in advance.
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cringle
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Re: T-statistic difference in Path Coefficient and Outer Loading

Post by cringle »

Exactly what you say: the t value of the outer loading (which usually are very high). But you should rather use the 95% bias-corrected and accelerated (BCa) bootstrap confidence intervals for significance resting (and report those results).

Regards
Christian
elenag2
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Real name and title: Elena Gorokhova

Re: T-statistic difference in Path Coefficient and Outer Loading

Post by elenag2 »

I would like to elaborate on this question. When optimizing the model - what is more important: to get more significant path coefficient for IV-LV path or significant indicators for LV? In my model, both are on the border of significance threshold and by increasing the one I decrease the other...
/Elena
jmbecker
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Re: T-statistic difference in Path Coefficient and Outer Loading

Post by jmbecker »

First, it depends on what type of measures you have. For reflective measures you always want high and significant loadings of all your indicators to ensure the reliability of your measurement of the constructs.

Second, you want to test the significance of your paths, i.e., find out if one construct has an influence on another as hypothesized by your theory.

Finally, you should not fudge with the significance. Don't optimize your model to get more or better results. Model according to your theoretical considerations and interpret the results.
Dr. Jan-Michael Becker, BI Norwegian Business School, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
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