Partial Least Squares - Structural Equation Modeling (PLS - SEM)

Using SmartPLS 3.0

Associate Professor Dr. S. Mostafa Rasoolimanesh

School of Hospitality, Tourism, and Events
Taylor’s University
11th June – 2nd July, 2020
 Mediator Analysis
• A mediating variable transmits the effect of an independent
variable on a dependent variable. (MacKinnon et al., 2007,
p.593)
 Mediator Analysis

• Mediating variables are behavioral, biological,

psychological, or social constructs that transmit the
effect of one variable to another variable.
Mediation is one way that a researcher can explain
the process or mechanism by which one variable
affects another. (MacKinnon et al., 2007, p.594)
 Mediator Analysis

• Cause-effect-relationships imply that independent

variables directly effect dependent variables without any
systematic influences.
• Complex cause-effect-relationships might be different
regarding the following aspect:
• The relationship between an independent and a dependent variable is
mediated by one or more variables
 Mediator Analysis

• We examined all 454 empirical articles published in the 2011 and

2012 volumes and identified 71 (15.6%) that included at least one
mediation analysis. The number of articles in a single issue with
such an analysis ranged between 1 and 6, with an average of 2.9
articles per issue. One cannot read an issue of Psychological
Science ( IF=4.543) without encountering at least one statistical
mediation analysis. (Hayes & Scharkow, 2013, p.1919)
Mediator Analysis
(Hair et al., 2017)
Mediator Analysis
(Hair et al., 2017)
Mediator Analysis
Mediator Analysis
 Assessment of Mediator

• MacKinnon et al. (2002) reviewed 14 tests to assess mediation and

indirect effect, and categorized them into three groups.
• The first group included causal steps as presented by Baron and
Kenny (1986);
• The second group discussed the differences in direct coefficient;
and
• The third group focused on the product of coefficients of indirect
effects (XM, MY).
 Assessment of Mediator

• Baron and Kenny (1986) suggested some important causal steps to test the
mediation; namely;
• i) The direct effect between X and Y should be significant;
• ii) The effect of X on M (mediator) and M on Y must be significant; and
• iii) The magnitude of the direct effect between X and Y after including mediator should
be reduced.
 However MacKinnon et al. (2002) revealed that this approach to test mediation which has
low statistical power and needs a large sample size to increase the statistical power of the
test.
 Assessment of Mediator
• Currently, there are other approaches to testing mediation focus
not on the individual paths in the mediation model but instead on
the product term a*b (See Hayes, 2009; Preacher & Hayes, 2008).

• Many authors argue that the requirement for a significant total

effect (c) of X  Y is not necessary for mediation to occur.
(MacKinnon et al., 2002, Fairchild & McQuillin, 2010, Rucker et
al., 2011)
 Assessment of Mediator
• There are different methods to test indirect effects (Hayes & Scharkow, 2013)
• Delta methods (Sobel test)
• Percentile and bias-corrected bootstrap CIs
• Distribution of the product
• Monte Carlo CI
• Joint significance
• Taking into account the results of a simulation study, Hayes & Scharkow (2013)
recommend:
• The bias-corrected bootstrap CI as the most trustworthy test if power is of utmost concern
• The percentile bootstrap CI. This is a good compromise test.
Assessment of Mediator

• Hayes & Scharkow (2013)

recommend to avoid the
Sobel test (i.e., either delta
version). It is the least
powerful and least
trustworthy of all methods
when there is an indirect
effect in the population.
 Assessment of Mediator
• The bootstrapping procedure to test the indirect effects with PLS (adapted from Chin, 2010):
1. Use the specific model in question including both the direct and the indirect paths,
2. Perform N bootstrap resampling
3. Explicitly calculate the product of the direct paths that form the indirect path/s
under assessment (a*b)
4. Estimate the significance using percentile bootstrap CIs
(where z.975 is equal to the constant 1.96)
Zhao et al. (2010)
Nitzl, C., Roldan, J.L. and Cepeda, G. (2016), "Mediation analysis in partial least squares path modeling:
Helping researchers discuss more sophisticated models", Industrial Management & Data Systems, Vol.
116 No. 9, pp. 1849-1864. https://doi.org/10.1108/IMDS-07-2015-0302
Gannon, M., Rasoolimanesh, S. M., & Taheri, B. (2020). Assessing the mediating role of residents’
perceptions toward tourism development. Journal of Travel Research, 0047287519890926.
Thank you for your attention
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