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By Lady Josman
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PLS-SEM Analysis Setup with Intervening Variable
π The tutorial demonstrates data analysis using SmartPLS version 3.0 for a study investigating the effect of work motivation (X1) and work environment (X2) on employee loyalty (Y), mediated by job satisfaction (Z).
π Data used must be in .txt (notepad) or .csv format for SmartPLS to read correctly.
π The structural model includes direct effects (, , , , ) and indirect effects (mediation paths).
Measurement Model Assessment (Outer Model)
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Convergent Validity requires all indicator outer loadings to be greater than 0.5.
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Discriminant Validity (assessed via AVE) requires the AVE value for each construct to be greater than 0.5 (e.g., Job Satisfaction AVE = 0.688).
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Collinearity Check uses the VIF (Variance Inflation Factor), which must be less than 5 for all indicators to ensure no multicollinearity.
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Reliability Check assesses Composite Reliability (CR) and Rho_A, both of which must be greater than 0.7 (or 0.6 depending on the standard used) for acceptable reliability.
Structural Model Assessment (Inner Model)
π Model Fit (): The value indicates the explained variance; is strong, $0.50 - 0.75$ is moderate. Path 2 () suggests a moderate ability of exogenous variables (via Z) to explain Y.
π₯ Effect Size (): Used to assess the relative impact of exogenous variables. Values of indicate small, medium, and large effects, respectively.
π Hypothesis Testing (Direct Effects): Significance is determined by P-values $< 0.05$. The path coefficient (Original Sample) indicates directionality (positive = searah/in the same direction).
Mediation Analysis (Indirect Effects)
π Indirect Effect Significance: If the P-value for the indirect effect is $< 0.05$, the mediating variable (Job Satisfaction, Z) is confirmed to play a role in the relationship between the exogenous variable (X1 or X2) and the endogenous variable (Y).
π Non-Significant Mediation: The indirect effect of Work Environment () on Loyalty ($Y$) through Job Satisfaction ($Z$) resulted in a P-value of 0.184 ($> 0.05$), indicating that Job Satisfaction does not significantly mediate this specific relationship.
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Significant Mediation: The indirect effect of Work Motivation () on Loyalty ($Y$) through Job Satisfaction ($Z$) was significant (P-value 0.026 $< 0.05$), confirming mediation.
Key Points & Insights
β‘οΈ Document Everything: Always screenshot and save the results from every stage (outer loadings, AVE, VIF, bootstrapping results) as they are required for the appendix/attachments section of the final research report.
β‘οΈ Interpret Path Coefficients: A positive coefficient (e.g., at 0.369) implies that an increase in the predictor variable leads to an increase in the outcome variable (direct relationship).
β‘οΈ Bootstrapping is Essential: Bootstrapping must be performed to obtain the necessary P-values for testing the significance of direct effects, indirect effects, and collinearity checks.
πΈ Video summarized with SummaryTube.com on Dec 03, 2025, 03:48 UTC
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Full video URL: youtube.com/watch?v=2SeJ9ScEYg8
Duration: 28:42

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