Dear all,
I am using Smart PLS. In my measurement model, I noticed I have to delete quite a number of indicators (> 20%) that is below than 0.4 loading (Hulland, 1999). The current construct has Composite Reliability (> 0.7) and AVE (>0.5) and the estimated model fit (SRMR < 0.08). The measurement model now is fit for hypothesis testing. My question is, is it okay to delete such amount of indicators? If okay, do you have reference to assist me to know more? If not okay, why? I would love to hear from you. Thanks.
Dear Michael,
This is a rule of thumb and you don´t need to follow it always. The mininum score is .30. It depends on the mumber of your sample. According to Stevens (1996), for a N = 50 you need loadings higher than 2*.361, for a N = 80, higher than 2*.286, for a N = 140, you need 2* .217 = .434, (..) and for a N = 1000 you only need loadings higher than 2*.081.
Also according to Hair, Anderson, Tatham, & Black, 2005, p. 107, for a N = 50 you nedd loadings higher than .50, buit for a N = 350 you only need loadings higher than .30
Stevens, J. (1996). Applied multivariate statistics for the social sciences (3rd ed.).Mahwah, NJ: Lawrence Erlbaum Associates.
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1999). Multivariate data analysis. NJ: Prentice-Hall.
This is worth reading as an up to date review
Exploratory structural equation modeling: An integration of the best features of exploratory and confirmatory factor analysis
http://www.vanderbilt.edu/psychological_sciences/graduate/programs/quantitative-methods/quantitative-content/marsh_morin_parker_kaur_2014.pdf
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