Hi,
Could anyone please let me know how to interpret the total effect in bootstrapping results?
I have the following relationship among the variables: profitability -> problem -> performance
The coefficient and t statistics between profitability and problem are -0.166 and 1.51
The coefficient and t statistics between profitability and performance is -0.078 and 1.4031
Can we say anything about the relationship between profitability and performance.
Any suggestion will be appreciated.
Regards
Dr Mohammad Faisal Ahammad
Senior Lecturer
Nottingham Business School
Nottingham Trent University
United Kingdom
Bootstrapping - Total Effect
Bootstrapping - Total Effect
Mohammad Faisal Ahammad PhD MSc PGCHE BA
Senior Lecturer
Division of Accounting and Finance
Nottingham Business School
Nottingham Trent University
United Kingdom
Senior Lecturer
Division of Accounting and Finance
Nottingham Business School
Nottingham Trent University
United Kingdom
-
- PLS User
- Posts: 16
- Joined: Tue Jan 24, 2012 9:57 am
- Real name and title:
Total effects are the sum of direct and indirect effects from one LV to another in the inner model (Albers 2009; Henseler, Ringle, Sinkovics 2009: 304). Using total effects you avoid the issue of direct effects, that are often underestimated and increasing the probability of a type 1 error - especially when other LVs have a moderating effect on the direct path.
In general if the absolute value of the t-statistic is greater than 1.96 the path is significant at the 5%-level, while if the t-statistic is greater than 2.58 it is significant at the 1%-level.
If the t-statistic is between -1,95 and 1,95 then you cannot say that there is a significant relationship between the two, at the 5%-level.
In general if the absolute value of the t-statistic is greater than 1.96 the path is significant at the 5%-level, while if the t-statistic is greater than 2.58 it is significant at the 1%-level.
If the t-statistic is between -1,95 and 1,95 then you cannot say that there is a significant relationship between the two, at the 5%-level.