One-Tailed or Two-Tailed P Values in PLS-SEM?

Abstract

Should P values associated with path coefficients, as well as with other coefficients such as weights and loadings, be one-tailed or two-tailed? This question is answered in the context of structural equation modeling employing the Partial Least Squares Method (PLS-SEM), based on an illustrative model of the effect of e-collaboration technology use on job performance. A one-tailed test is recommended if the coefficient is assumed to have a sign (positive or negative), which should be reflected in the hypothesis that refers to the corresponding association. If no assumptions are made about coefficient sign, a two-tailed test is recommended. These recommendations apply to many other statistical methods that employ P values, including path analyses in general, with or without latent variables, plus univariate and multivariate regression analyses.