AVE and communality

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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pagliuca
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AVE and communality

Post by pagliuca »

Hi,
I'm new to pls and particularly SmartPls. I've 3 questions:
1)why does it calculate AVE only for riflessive models?
2)in this case, why does AVE is equal to communality?
3)what does communality means in formative models?

Thanka a lot.


Best regards
Margherita
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Diogenes
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Post by Diogenes »

Hi, see:

viewtopic.php?t=277&highlight=ave+communality

viewtopic.php?t=288&highlight=ave+communality

Trying to answer:

1) Because in reflexive mode the LV is the cause and the MVs are effects. All MVs from the same LV must be correlated with each other. We could understand AVE as % of the variance of all MVs that is explained by the LV.

2) AVE = The average of the communalities (see links above)

3) In formative mode, We don´t use communality for nothing, because ideally we should have indicators not correlated with each other (multi-collinearity) and they are the cause and LV is the effect.

I hope this help.

Bido
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