Error terms

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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rathor1072@gmail.com
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Real name and title: shekhu

Error terms

Post by rathor1072@gmail.com »

Hi
I need to do power analysis using the technique mentioned in this paper. For that, I need error terms. I have reflective and formative variables in my research model. How can I find error terms for these variables(formative)?

Aguirre-Urreta, M., & Rönkkö, M. (2015). Sample Size Determination and Statistical Power Analysis in PLS Using R: An Annotated Tutorial. Communications of the Association for Information Systems, 36, 3. doi:10.17705/1CAIS.03603

Thank you
jmbecker
SmartPLS Developer
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Real name and title: Dr. Jan-Michael Becker

Re: Error terms

Post by jmbecker »

For the approach you need the error variance. For reflective measures these can easily be calculated as 1-loading^2. For example, a loading of 0.7 has 1-0.7^2=0.51 error variance and a loading of 0.8 has 1-0.8^2=0.36 error variance (as also shown in their example).

Formative measures are assumed to be error free in PLS (i.e., composite indicators). Thus, the error variance of the construct should be zero.
Dr. Jan-Michael Becker, BI Norwegian Business School, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
GoogleScholar: http://scholar.google.de/citations?user ... AAAJ&hl=de
rathor1072@gmail.com
PLS User
Posts: 16
Joined: Wed May 18, 2016 6:59 pm
Real name and title: shekhu

Re: Error terms

Post by rathor1072@gmail.com »

Thank you Dr. Becker. This is very helpful.
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