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All Journal Jurnal Aplikasi Statistika & Komputasi Statistik
Bhakti, Diana
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Computer Science & IT Decision Sciences, Operations Research & Management Mathematics

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Comparison of Binary and Traditional Partial Least Squares Structural Equation Modeling: A Study on The Role of Multidimensional Poverty Dimension to Social Protection in Java Island Bhakti, Diana; Adji, Ardi; Mubarok, Endang Saefuddin; Sukmono, Renny; Salam, Rudi
Jurnal Aplikasi Statistika & Komputasi Statistik Vol 17 No 1 (2025): Jurnal Aplikasi Statistika & Komputasi Statistik
Publisher : Politeknik Statistika STIS

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.34123/jurnalasks.v17i1.795

Abstract

Introduction/Main Objectives: The traditional Partial Least Squares Structural Equation Modeling (PLS-SEM) method uses an ordinary least squares regression approach that assumes that indicators must have a continuous scale. When the indicators are categorical, the use of traditional PLS-SEM becomes less appropriate. Background Problems: Multidimensional poverty consists of dimensions that are measured by a binary scale. The use of binary PLS-SEM is better than traditional PLS-SEM in modeling the effect of dimensions on social protection on Java Island. Novelty: The use of binary PLS-SEM with factor scores from the item response theory model applied to the role of dimensions of multidimensional poverty to social protection has not been carried out yet. Research Methods: This study introduces binary PLS-SEM, which is modified from traditional PLS-SEM by changing the data input using a tetrachoric correlation matrix. Finding/Results: Empirical results show that the binary PLS-SEM measurement model is better than traditional PLS-SEM. Evaluation of the structural model shows that the path coefficients of binary PLS-SEM are better than traditional PLS-SEM. Both approaches have an overall model fit. The order of multidimensional poverty dimensions that affect social protection are education, living standard, and health.
Co-Authors Ardi Adji, Ardi Mubarok, Endang Saefuddin Renny Sukmono, Renny Rudi Salam