Chapter 4: Assessing PLS-SEM Results Part I - Evaluation of the Reflective Measurement Models

Learning Outcomes

  1. Gain an overview of Stage 5 of the process for using PLS-SEM, which deals with the evaluation of measurement models.
  2. Describe Stage 5a: evaluating reflectively measured constructs.
  3. Use the SmartPLS software to assess reflectively measured constructs in the corporate reputation example.

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Having learned how to create and estimate a PLS path model, we now focus on understanding how to assess the quality of the results. Initially, we summarize the primary criteria that are used for PLS path model evaluation and their systematic usage. Then, we focus on the evaluation of reflective measurement models. The PLS path model of corporate reputation is a practical application enabling you to review the relevant measurement model evaluation criteria and the appropriate reporting of results. This discussion provides a foundation for the overview of formative measurement models in Chapter 5 and how to evaluate structural model results, which is covered in Chapter 6.