Algorithm for outer 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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John8888
PLS Junior User
Posts: 1
Joined: Fri Feb 04, 2022 5:30 am
Real name and title: John

Algorithm for outer loadings

Post by John8888 »

I understand how to use PLS-SEM to produce outer loadings. However, can anyone explain how PLS calculates outer loadings? Or possibly provide the formula (that can be done by hand or in Excel, SPSS; a procedure, or theory? Can anyone recommend any resources (videos, etc.)? I'd like to understand the workings behind the numbers? What causes a high loading? What causes a low loading etc.?

Thank you for any help that can be provided.
jmbecker
SmartPLS Developer
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Joined: Tue Mar 28, 2006 11:09 am
Real name and title: Dr. Jan-Michael Becker

Re: Algorithm for outer loadings

Post by jmbecker »

In a normal PLS algorithm, where both latent variables and indicators are standardized, the outer loadings are simply the correlations between the indicator and the estimated latent variable score.

As the latent variable score is a weighted sum of the indicators, you usually have higher outer loadings, if you indicators of a construct correlate highly. Because then also the correlation between the resulting latent variable composite and the indicators is higher.
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
padmika
PLS Junior User
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Joined: Fri Jan 06, 2023 4:55 am
Real name and title: Padmika Herath

Re: Algorithm for outer loadings

Post by padmika »

Hi Scholars , PLS-SEM experts;

What causes for a high loading? and
What causes for a low loading ?

BR
Padmika
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