Consistent PLS

Abstract

The consistent PLS (PLSc) algorithm performs a correction of reflective constructs' correlations to make results consistent with a factor-model.

Description

The consistent PLS (PLSc) algorithm performs a correction of reflective constructs' correlations to make results consistent with a factor-model (Dijkstra 2010; Dijkstra 2014; Dijkstra and Henseler 2015; Dijkstra and Schermelleh-Engel 2014). In principle, the correction builds on Nunnally’s (1978) well-known correction for attenuation formula.

PLSc Settings in SmartPLS

Initial Calculations: One can decide whether the initial PLS path model should be taken as it is or if all LVs should be connected to generate latent variable scores when running the PLS algorithm. Dijkstra and Henseler (2012) advise to use connections between all LVs for the estimation of the latent variables scores to get more stable results.

Until now, no additional parameter specifications are required for the correction that PLSc performs on the results of the basic PLS algorithm. However, parameter settings for the underlying PLS algorithm are important and should be checked.

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