Note 3
Note 3
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RESEARCH STATISTICS Example 2
A researcher conducts a study to examine
the effect of Teamwork on Performance.
Using data file Data Example 2, draw the
research model, analyse and report the
results of PLS-SEM analysis for:
1. Construct validity
2. Construct reliability
DR CHUA YAN PIAW (UM)
1. Loadings ≥ 0.70
Remove indicators that have factor
loadings < .50
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Convergent validity
2. AVE ≥ 0.50
Note: If AVE smaller than 0.50, remove
items that have smallest loadings one by
one, to increase AVE.
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1. Cronbach's alpha
2. Composite reliability (a and c)
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Discriminant validity:
1. Cross loadings
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Discriminant validity:
2 Fornell-Larcker criterion
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Discriminant validity:
3. HTMT < 0.90
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Discriminant validity:
RESEARCH STATISTICS
Solving problem of discriminant validity
Remove items that has high inter-
correlation values with other variables.
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Discriminant validity:
After removing Teamwork item 1
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Multicollinearity
VIF < 0.50
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RESEARCH STATISTICS Results:
Item 2 of Teamwork was removed due to
small loading values (< 0.70).
Item 1 of Teamwork was removed due to
discriminant validity. This is because it
correlated highly with the four items of
Performance.
Teamwork has 3 valid and reliability items:
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Items 3, 4, and 5.
Performance has 4 valid and reliability
items: items 1, 2, 3 and 4.
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Example 3
RESEARCH STATISTICS
c. R-square
d. validity, reliability and multicollinearity of the
instrument items of the three variables
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RESEARCH STATISTICS DR CHUA YAN PIAW (UM) RESEARCH STATISTICS DR CHUA YAN PIAW (UM)