Abstract
We describe a practical approach to tackling observed heterogeneity using partial least squares structural equation modelling (PLS-SEM) when the number of categorical variables is high and the context of the research is exploratory. The approach is based on combining classical multigroup PLS-SEM approach and pathmox analysis. We provide practical guidance on using our hybrid multigroup PLS-SEM and illustrate its application using real data for bank employees. In investigating work climate, specifically the relationship between satisfaction and loyalty considering specific drivers (empowerment, company reputation, leadership, pay, and work conditions) and different sources of heterogeneity (gender, age, marital status, education, job level, and antiquity), the hybrid multigroup PLS-SEM identified three partitions defined by juniors, seniors, and managers, and identified significant differences between those groups, specifically in indicating that leadership and pay were more important for juniors, empowerment for seniors, and company reputation and work conditions for managers.
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The data that support the findings of this study are not available due to legal policy restrictions.
Code availability
The SmartPLS 3.2 software and the genpathmox package in R software version 0.4 provided the model estimates (global and multigroup analysis) and the pathmox analysis, respectively.
Notes
The data were obtained from an organizational study of a Spanish bank collaborating with a Spanish university statistics department. The data had been collected through a survey (run by the bank’s human resource department), consisting of a questionnaire emailed to employees, whose anonymity was guaranteed. The response rate was 94%. The collected data were processed and analyzed by the university statistics department.
We fixed to one (i.e., r = 1) the number of repetitions. According to Shmueli et al. (2019), this is adequate when the prediction is based on a single model. We maintained to 10 the number subsample (i.e., k = 10) as this value respects the minimum required training sample size.
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Appendix
Appendix
Constructs/indicators | Mean | SD | Skewness | Kurtosis |
|---|---|---|---|---|
Empowerment | ||||
Emp1—Recognition of work performed | 3.459 | 0.894 | − 0.615 | 0.067 |
Emp2—Employee treatment as responsible | 3.515 | 0.832 | − 0.555 | 0.23 |
Emp3—Teamwork is empowered | 3.291 | 0.92 | − 0.502 | − 0.172 |
Emp4—Autonomy is favoured | 3.239 | 0.863 | − 0.348 | − 0.098 |
Emp5—Confidence in performed tasks | 3.48 | 0.853 | − 0.435 | 0.168 |
Emp6—Creativity and initiative are endorsed | 3.231 | 0.821 | − 0.373 | 0.31 |
Reputation | ||||
Rep1—Organization’s reputation | 4.215 | 0.686 | -0.51 | 0.135 |
Rep 2—Organization’s values | 4.165 | 0.743 | − 0.72 | 0.791 |
Rep 3—Organization’s customer relationships | 3.949 | 0.718 | − 0.613 | 1.386 |
Rep 4—Organization’s internal relationships | 3.914 | 0.716 | − 0.371 | 0.429 |
Rep 5—Organization’s external projection | 3.959 | 0.738 | − 0.54 | 0.91 |
Pay | ||||
Pay1—Salary | 3.823 | 0.748 | − 0.817 | 1.22 |
Pay2—Social benefits | 3.672 | 0.768 | − 0.49 | 0.347 |
Pay3—My salary corresponds to my duties | 3.12 | 0.915 | − 0.278 | − 0.171 |
Pay4—My salary corresponds to my effort | 3.111 | 0.932 | − 0.326 | − 0.525 |
Conditions | ||||
Cond1—Enough personnel in the office | 3.242 | 1.016 | − 0.463 | − 0.597 |
Cond2—Enough time to perform the tasks | 2.924 | 0.961 | − 0.151 | − 0.901 |
Cond3—Conditions and tools for work | 3.693 | 0.769 | − 0.922 | 1.188 |
Leadership | ||||
Sup1—Agenda and planning | 3.489 | 1.042 | − 0.594 | − 0.253 |
Sup2—Receptiveness | 3.914 | 1.055 | − 0.966 | 0.382 |
Sup3—Encouraging | 3.607 | 1.054 | − 0.567 | − 0.248 |
Sup4—Communication | 3.326 | 1.101 | − 0.376 | − 0.573 |
Sup5—Celebrating success | 3.761 | 1.132 | − 0.803 | − 0.102 |
Satisfaction | ||||
Sat1—Overall rating of satisfaction | 4.037 | 0.699 | − 1.043 | 2.646 |
Sat2—Tasks in accordance with capabilities | 3.537 | 0.855 | − 0.927 | 0.506 |
Sat3—Possibility to know efficiency | 3.595 | 0.768 | − 0.762 | 0.696 |
Sat4—Possibility to learn new things | 3.624 | 0.839 | − 0.754 | 0.512 |
Sat5—Usefulness of performed job | 3.86 | 0.658 | − 0.867 | 2.157 |
Sat6—Fulfilment of expectations | 3.489 | 0.858 | − 0.857 | 0.374 |
Loyalty | ||||
Loy1—I am unwilling to leave in case of not finding alternative | 3.586 | 0.908 | − 0.74 | 0.467 |
Loy2—I am committed to the institution | 4.134 | 0.789 | − 1.03 | 1.796 |
Loy3—I trust in the proper direction of the management | 3.84 | 0.825 | − 0.651 | 0.779 |
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Lamberti, G. Hybrid multigroup partial least squares structural equation modelling: an application to bank employee satisfaction and loyalty. Qual Quant 57 (Suppl 4), 683–705 (2023). https://doi.org/10.1007/s11135-021-01096-9
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DOI: https://doi.org/10.1007/s11135-021-01096-9