Abstract
PLSe1 and PLSe2 methods were developed in 2013. While the performance of PLSe1 under normality and non-normality conditions has been confirmed, the performance of PLSe2, proposed to provide an avenue for the resurrection of PLS as a fully justified statistical methodology, has not yet been verified under non-normality condition. For this reason, our study aims at testing the performance of PLSe2 with non-normal data based on a Monte Carlo simulation using a simple and a complex model. In addition, it aims at providing a step-by-step visual guideline on how to apply this method in estimating a simple mediation model using EQS 6.4. The results of the Monte Carlo simulations across different numbers of replications and sample sizes provided substantial support for the performance of PLSe2 under non-normality conditions since the produced estimates were unbiased and virtually identical to the parameters resulted from the traditional ML estimation. In addition, we provided evidence about the suitability of different robust test statistics for the purpose of model evaluation based on our simulation results. Regarding the empirical example, we estimated a mediation model using ML, PLSe2, and PLSc estimators, compared the results across these methods, and provided further support for our PLSe2 and ML results through running a resampling bootstrap simulation. Overall, while we empirically validated the PLSe2 method using Monte Carlo simulations, our findings suggest that PLSe2 has the advantages of both ML and PLS and performs well under non-normality (and normality) conditions, thereby suggesting it as the methodology of choice for model specification, estimation, and evaluation in social sciences empirical studies.
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Data availability
The data that support the findings of the empirical example in this study are openly available in HARVARD DATAVERSE at https://doi.org/10.7910/DVN/TNGALP.
Notes
In the measurement model displayed in matrix format, ηi are factors; λi,j are factor loadings; yi are equations for the items; and εi are the residuals of the equations.
In the structural model displayed in matrix format, ηi are factors; βi,j are path coefficients; and ζi are disturbance terms of the equations.
EQS supports model-based and resampling bootstrap simulations (Bentler 2006). The procedure of running the resampling bootstrap simulations has not been illustrated as they were not the core objective of this study. However, no convergence problems occurred in the replications (100% success with no condition code).
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Acknowledgements
We appreciate the support of our families to finish this manuscript during unprecedented global crises and workplace upheaval. We also are indebted to the editor and review team for their efforts and contributions during this time. Similarly, we appreciate the responsive support of the technical team at Multivariate Software Inc. (www.mvsoft.com). A part of this project was presented at International Symposium on Applied Structural Equation Modeling and Methodological Matters (SASEM) 2019, Melaka, Malaysia.
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This research study was supported by the Universiti Sains Malaysia (Grant Number: 304/CIPPTN/6315200).
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Appendices
Appendix A
The univariate skewness and kurtosis statistics of the items of the simulated 2-factor CFA model under the non-normality condition.
Item | Skewness | Kurtosis |
---|---|---|
λ1,1 | − 1.75 | 4.00 |
λ2,1 | 1.50 | 2.50 |
λ3,1 | − 1.50 | 4.35 |
λ4,2 | 1.00 | 2.50 |
λ5,2 | − 0.90 | 3.00 |
λ6,2 | 1.50 | 2.50 |
Appendix B
The univariate skewness and kurtosis statistics of the items of the simulated non-recursive model under the non-normality condition.
Item | Skewness | Kurtosis |
---|---|---|
λ1,1 | − 1.50 | 3.00 |
λ2,1 | 1.50 | 2.50 |
λ3,1 | − 1.00 | 3.35 |
λ4,2 | 1.00 | 2.50 |
λ5,2 | − 0.60 | 2.70 |
λ6,3 | 1.50 | 2.50 |
λ7,3 | − 1.20 | 2.70 |
λ8,3 | − 1.00 | 1.65 |
λ9,4 | − 0.10 | 2.35 |
λ10,4 | 0.30 | 2.60 |
λ11,5 | − 0.70 | 3.30 |
λ12,5 | − 0.60 | 3.20 |
λ13,5 | 1.50 | 3.80 |
Appendix C
The *.eqs file to verify the performance of ML under the non-normality condition (N = 3000, Replication = 1000).
Appendix D
The *.eqs file to verify the performance of PLSe2 under the non-normality condition (N = 3000, Replication = 1000).
Appendix E
The items of the final model of the empirical example
Construct | Code | Item |
---|---|---|
Creating value for the community | CVC1 | I emphasize the importance of giving back to the community |
CVC2 | I am always interested in helping people in the community | |
CVC3 | I am involved in community activities | |
CVC4 | I encourage others to volunteer in the community | |
Job performance | JP6 | When I want to reach a goal, I am usually able to succeed |
JP7 | I complete work in a timely and effective manner | |
JP8 | I complete a large quantity of work | |
JP9 | I perform high-quality work | |
Job satisfaction | JS2 | I feel close to the people at work |
JS3 | I feel good about working at this institution | |
JS4 | I feel secure about my job | |
JS5 | I believe management is concerned about me | |
JS9 | I get along with my supervisors | |
JS10 | I feel good about my job |
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Ghasemy, M., Jamil, H. & Gaskin, J.E. Have your cake and eat it too: PLSe2 = ML + PLS. Qual Quant 55, 497–541 (2021). https://doi.org/10.1007/s11135-020-01013-6
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DOI: https://doi.org/10.1007/s11135-020-01013-6