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.

Best regards to all!

True composite and factor reliabilities

The menu option “Explore additional coefficients and indices”, available in WarpPLS starting in version 6.0,  allows you to obtain an extended set of reliabilities. The extended set of reliabilities includes the classic reliability coefficients already available in the previous version of this software, plus the following, for each latent variable in your model: Dijkstra's PLSc reliability (also available via the new menu option “Explore Dijkstra's consistent PLS outputs”), true composite reliability, and factor reliability. When factor-based PLS algorithms are used in analyses, the true composite reliability and the factor reliability are produced as estimates of the reliabilities of the true composites and factors. They are calculated in the same way as the classic composite reliabilities available from the previous version of this software, but with different loadings. When classic composite-based (i.e., non-factor-based) algorithms are used, both true composites and factors coincide, and are approximated by the composites generated by the software. As such, true composite and factor reliabilities equal the corresponding composite reliabilities whenever composite-based algorithms are used.

Related YouTube video:

Explore True Composite and Factor Reliabilities in WarpPLS

http://youtu.be/DwslOCEvOd4