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Saturday, July 11, 2015

Testing for common method bias in PLS-SEM using full collinearity VIFs


Full collinearity variance inflation factors (VIFs) can be used for common method bias tests that are more conservative than, and arguably superior to, the traditionally used tests relying on exploratory factor analyses. Full collinearity VIFs and their use for common method bias tests, as well as other tests, are addressed in the following publications (also available from WarpPLS.com):

Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1-10.

PDF file:

https://drive.google.com/file/d/0B76EXfrQqs3hYlZhTWdWcXRockU/view

Kock, N., & Lynn, G.S. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations. Journal of the Association for Information Systems, 13(7), 546-580.

PDF file:

http://www.scriptwarp.com/warppls/pubs/Kock_Lynn_2012.pdf

Essentially, testing for the existence of common method bias through this method entails comparing the full collinearity VIFs calculated by WarpPLS for all latent variables to the threshold of 3.3 (or 5.0, if factor-based algorithms are used). If all full collinearity VIFs are equal to or lower than the threshold, this can be seen as an indication that the model is free from common method bias.

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