PLS-SEM, formative indicator: Interpretation loading of 0.000

07 July 2017 1 870 Report

Hello,

I am doing an exploratory (PLS-)SEM and I am trying to evaluate the effect of different aspects on a certain latent construct. While doing so I got a significant (reasonable) negative weight for a formative indicator with an associated loading of 0.000. Does someone know how to interpret a loading of 0.000? (the indicator is coded correctly)

Kind regards,

Robert

Yevgen Bogodistov

If I understood you correctly, it means that it explains only a very few variance in the superordinate construct. Formative means it measures (predicts) directly a construct. By a reflective item you would need a bundle of them.

Consequently, I would drop this item since it has to few predictive power.

Best,

Eugene

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