{"id":3397,"date":"2021-08-26T11:23:44","date_gmt":"2021-08-26T11:23:44","guid":{"rendered":"https:\/\/researchwithfawad.com\/?page_id=3397"},"modified":"2021-09-11T10:51:53","modified_gmt":"2021-09-11T10:51:53","slug":"validating-formative-indicators-using-smart-pls","status":"publish","type":"page","link":"https:\/\/researchwithfawad.com\/index.php\/lp-courses\/basic-and-advance-data-analysis-using-smart-pls\/validating-formative-indicators-using-smart-pls\/","title":{"rendered":"Validating Formative Indicators using SMART-PLS"},"content":{"rendered":"\t\t
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How to Validate Formative Model in SMART-PLS<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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How to Validate Formative Model in SMART-PLS\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Before Discussing How to Validate Formative Model, To Review What is Formative Construct and How does it differ from Reflective Construct, Click Here<\/a>
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Assessment of formative measurement model for collinearity issues <\/b><\/p>

Since the indicators are not essentially inter-changeable, high correlations are not expected between indicators in formative measurement models. In fact, high correlations between two formative indicators are known as collinearity (Hair et al. 2014).<\/p>

High levels of collinearity between formative indicators are problematic because they have an impact on the estimation of weights and their statistical significance.<\/p>

In order to assess the level of collinearity in PLS-SEM, Variance Inflation Factor (VIF) is looked at. There are two widely accepted rules of thumbs:<\/p>