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Data Analysis with SmartPLS 3.3.3
Data Analysis with SmartPLS 3.3.3
One of the techniques to analyze multivariate data is by using Structural Equation Modeling (SEM) Approach.
One of the popular SEM software is SmartPLS.
It is a graphical user interface for variance-based SEM using the partial least squares path modeling method. By using this software, the relationship between variables can be examined.
Basic Composition of PLS-SEM Model
Basic Composition of PLS-SEM Model
Outer & Inner Models
Outer & Inner Models
Outer Model
Outer Model
An outer model is also called measurement model.
It displays the relationships between the constructs and the indicator variables (rectangles).
Inner Model
Inner Model
An inner model is also called structural model that represents the constructs (circles or ovals).
It also displays the relationships (paths) between the constructs.
Endogenous vs Exogenous Variables
Endogenous vs Exogenous Variables
In SEM, the terms of independent and dependent variables are no longer used as suggested by Gefen et al., (2000) (Download here). As a replacement to those terms, SEM is using endogenous and exogeneous variables.
In some condition, a variable can be an endogenous in one situation, it can be also exogeneous in another situation.
Endogenous Variable
Endogenous Variable
Constructs to be explained in the model.
Variable that is influenced/affected by other variables.
Variable that has arrow(s) pointing into it.
Exogenous Variable
Exogenous Variable
Construct that explains other constructs in the model.
Variable that is not affected by other variables, rather it affects others
Variable that has arrow(s) pointing out from it.
The 2-Step Approach in SEM
The 2-Step Approach in SEM
This approach was suggested by Anderson and Gerbing (1988) (Download here).
This approach is also the same approach done in SPSS. However, if we use SPSS, we don not label them as measurement model and structural model assessment.
Step 1: Building & Testing Measurement Model
Step 1: Building & Testing Measurement Model
To assess construct validity of the model (i.e., the relationships between latent variable & its manifest variables.
Step 2: Building & Testing Structural Model
Step 2: Building & Testing Structural Model
To test hypotheses (i.e., the relationships between latent variables).
The measurement model serves to create a structural model including paths representing the hypothesized associations among the research constructs.
If the model involves both reflective and formative constructs, then below is the procedure:
Brief Instruction of Using SmartPLS
Brief Instruction of Using SmartPLS
Step 1 : Load SmartPLS 3 Software.
Step 2 : Create new project – assign name of project.
Step 3 : Double click to import data.
Step 4 : Draw model
Step 5 : Save model
Step 6 : Click on Calculate icon, select PLS-Algorithm on the drop-down list. Now, accept the default options, then click Finish.
Step 7 : Click on calculate icon, select Bootstrapping on the drop-down list. Now, accept the default options, then click Finish.
SmartPLS 2.0
SmartPLS 2.0
SmartPLS 3.0
SmartPLS 3.0
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