Reliability assessment in SEM models with composites and factors: A modern perspective

The article below puts forth a modern perspective on how one can conduct reliability assessments in models with composites and factors, in the context of structural equation modeling via partial least squares (PLS-SEM).

Canatay, A., Emegwa, T., Lybolt, L. M. & Loch, K. D. (2022). Reliability assessment in SEM models with composites and factors: A modern perspective. Data Analysis Perspectives Journal, 3(1), 1-6.

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Abstract:

This paper’s focus is on reliability tests for both composite-based and factor-based analysis algorithms in structural equation modeling through partial least squares (PLS-SEM). We illustrate this analysis employing a widely used PLS-SEM software tool, WarpPLS. The results show the magnitude of differences between the two approaches, suggesting that the estimates of coefficients obtained using the factor-based approach are more conservative than those obtained using the corresponding composite-based approach.

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