VIF, t- values for formative , outer weights or loadings

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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ruchi
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VIF, t- values for formative , outer weights or loadings

Post by ruchi »

Hello

I need to validate my formative indicators. For this I need to check the significance level of the indicators measuring a construct(Variable). Example
quality = w1* coverage + w2* customer care.

to validate this construct , I need to check significance lebel of these indicators . Am i right and then also check the VIF .
My doubts is

1) How will I calculate this VIF between these indicators in PLS
2) here w1 and w 2 are -- outer loadings or outer weights in report after running bootstrap.
3) In the report for validating formative construct which t- values should i see. ( outer weights or outer loadings t values)

I am very much confused on this , Please clear my doubts.

Thanks
Ruchi
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Diogenes
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Post by Diogenes »

Hi

1) How will I calculate this VIF between these indicators in PLS
It is not possible; you must compute it using SPSS or other regression software.

2) here w1 and w 2 are -- outer loadings or outer weights in report after running bootstrap.
They are outer weights after PLS algorithm.

3) In the report for validating formative construct which t- values should i see. ( outer weights or outer loadings t values)
Outer weights

Best regards,

Bido
Bjerg54
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Post by Bjerg54 »

Hi Bido,
A question to your answer above:

3) In the report for validating formative construct which t- values should i see. ( outer weights or outer loadings t values) Outer weights

Does this mean, that we in a formative LV can remove indicator variables rejected in the t-test? Are this then interpreted as, the indicator does not provide significance support to the formative LV?
I thought this could only be tested in a reflective model, that the only way to test the formative LV construct, was using a tetrad test?

BR
Wilke
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