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Karl-Werner Hansmann / Christian M. Ringle SmartPLS Manual

© Förderverein Industrielles Management an der Universität Hamburg e.V. (2004), Postfach 130342, 20103 Hamburg, Germany (Registered society to support the Institute for Operations Management and Organizations at the University of Hamburg, Germany) All rights reserved Institute for Operations Management and Organizations at the University of Hamburg: http://ibl-unihh.de Weppage of the SmartPLS project : http:// www.smartpls.de Manual Version 1.0 (8/13/2004) For SmartPLS Version 0.9 Beta

Table of Contents 1. INTRODUCTION..................................................................................................... 4 2. INSTALLATION....................................................................................................... 4 2.1. System Requirements.....................................................................................................................4 2.2. Start SmartPLS ................................................................................................................................4 3. MAIN WINDOW....................................................................................................... 5 3.1. Create New Model............................................................................................................................5 3.2. Open Model.......................................................................................................................................6 4. MODEL EDITOR..................................................................................................... 7 4.1. Options..............................................................................................................................................8 4.1.1. Output Options............................................................................................................................8 4.1.2. Data Options...............................................................................................................................8 4.1.3. Algorithm Options.......................................................................................................................8 4.2. Working Area....................................................................................................................................8 4.2.1. Drawing Area..............................................................................................................................8 4.2.2. Tool Bar......................................................................................................................................8 4.3. Indicators Management.................................................................................................................15 5. EXTENDED MAIN WINDOW................................................................................. 17 5.1. Edit...................................................................................................................................................17 5.2. View.................................................................................................................................................17 5.3. PLS..................................................................................................................................................17 5.3.1. Calculate model .......................................................................................................................17 5.3.2. Resampling...............................................................................................................................18 5.3.3. Reimport of Model Data............................................................................................................18 5.3.4. Report.......................................................................................................................................19 5.3.5. Export........................................................................................................................................19 5.4. Window...........................................................................................................................................20 6. SHORTCUTS......................................................................................................... 21 SmartPLS Manual Page 3

1. Introduction SmartPLS is a software application for the design of structural equation models (SEM) on a graphical user interface (GUI). These models can be measured with the method of partial least squares (PLS)-analysis. Hence, it is possible to import data of manifest (indicator) variables in the model. This software was created in a project at the Institute of Operations Management and Organiza- tions (School of Business), University of Hamburg (Germany). 2. Installation SmartPLS employs the Java WebStart technology. Thus, it is applicable on all computer operating systems and the latest version is always provided. 2.1. System Requirements In order to use SmartPLS, the Java Runtime Environment (JRE) version 1.4. (or later) has to be installed on the computer system. The JRE is available for almost every computer operating system and can directly be downloaded for free from the Webpage of Sun Microsystems, Inc.: http://java.sun.com/j2se/1.4.2/download.html 2.2. Start SmartPLS Step 1: Step 2: Step 3: Step 4: Open the Webpage http://www.smartpls.de. Select the English version of the Webpage. Click on SmartPLS. Click on SmartPLS WebStart. SmartPLS Manual Page 4

3. Main Window After opening SmartPLS, the main window appears. It is possible to either create a new model or to open an existing model. Neues Modell anlegen Modelle öffnen 3.1. Create New Model When selecting the option Create new model, the following dialog opens. A model name, the data source and name for the model indicators as well as a separator for the CSV (comma separated value) file are required to start a new project. SmartPLS Manual Page 5

A CSV file as source for the manifest variables in the model must be chosen. Such files can be generated with several software applications, e.g. Excel or SPSS. 3.2. Open Model SmartPLS models are saved with the extension .splsm and can be opened with the function Select SmartPLS file. Note: A SmartPLS model file (.splsm) consists of both the model structure as well as the data for the manifest variables. Thus, all required information are saved in one file and models can be easily transferred. SmartPLS Manual Page 6

4. Model Editor After selecting either the function create new model or open model, the SmartPLS model editor can be used to create, change and calculate models. It is also possible to work with more than one model in the same session. Every model appears in its own window. The model editor is divided into three different areas: manifest variables, properties and drawing board. SmartPLS Manual Page 7

4.1. Options 4.1.1. Output Options Settings for the report file format can be changed in the format field. The current version only supports HTML (hypertext markup language). 4.1.2. Data Options The option replace missing values and missing values defines, if and how missing values in the indicator data files shall be replaced before the model calculation starts. 4.1.3. Algorithm Options Different settings for the PLS algorithm can be selected in this field: data metric, weighting scheme, maximum number of iterations and stop crite- rion. 4.2. Working Area New models are designed or existing models are changed in this area. The required modeling functions are provided in the tool bar. 4.2.1. Drawing Area In the drawing area, new models can be created or existing models can be changed with the functionalities that are provided in the tool bar. 4.2.2. Tool Bar The tool bar allows to quickly access all functionalities that are necessary to create and change models. a) Modelling Modes SmartPLS has three different modelling modes that can be used for the design and change of models: selection mode, drawing mode and connection mode. SmartPLS Manual Page 8

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