Latent and Manifest Variables of PLS-SEM Model in the Decision Making of PIKNET Sound Wave-Based Attractor Innovation by Fishermen in Bulak Sub-District, Surabaya, Indonesia

Abstract

A study of the diffusion process of sound wave-based attractor innovation in fishing groups needs to be done because the application of innovation requires an adaptation process so that one can adopt the new subject through the established stages. The innovation-decision process is a mental process by which a person or institution goes from initial knowledge about an innovation. This research aims to analyze the measurement model and the relationship between variables in the decision-making of Piknet innovation by fishermen in Bulak Surabaya. SEM PLS data analysis was used to determine the relationship between latent and manifest variables. The test results showed that the CR value is above 0.7; therefore, it can be said that the variable has been met. The AVE values for X1-X5, Y1 and Y2 are above 0.5. Therefore, each latent variable has a valid measurement model. The conclusions from the research are as follows: (1) The analysis results of the measurement model met the requirements with good characteristics. Therefore, it can be continued to the next stage of structural model analysis; (2) Furthermore, 11 eliminated indicator variables did not meet the standard requirements of the outer loading value ; (3) A significant relationship was found in the latent variables of X1-X5, Y1 and Y2; (4) Indicator variables related to the latent variable are X1.4, X2.1, X3.2, X4.1-X4.3, X5.1, X5.2, Y1.1-Y1.3 and Y2.1,-Y2.3. To develop this research, continuous research is needed by examining each of the variables used in depth.