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.
An outer model is also called measurement model.
It displays the relationships between the constructs and the indicator variables (rectangles).
An inner model is also called structural model that represents the constructs (circles or ovals).
It also displays the relationships (paths) between the constructs.
Constructs to be explained in the model.
Variable that is influenced/affected by other variables.
Variable that has arrow(s) pointing into it.
Construct that explains other constructs in the model.
Variable that is not affected by other variables, rather it affects ather
Variable that has arrow(s) pointing out from it.
The Variable that is not directly observed but are rather inferred (through a mathematical model) from other variables that are observed (directly measured).
This variable needs a manifest variable assigned to it as an indicator.
Variable that can be directly measured or observed.
To assess construct validity of the model (i.e., the relationships between latent variable & its manifest variables.
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.
Step 1 : Load SmartPLS Software.
Step 2 : Create new project – assign name and data.
Step 3 : Double click to get menu bar.
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.