Search results

1 – 10 of 65
Open Access
Article
Publication date: 3 September 2021

Ellen Roemer, Florian Schuberth and Jörg Henseler

One popular method to assess discriminant validity in structural equation modeling is the heterotrait-monotrait ratio of correlations (HTMT). However, the HTMT assumes…

6125

Abstract

Purpose

One popular method to assess discriminant validity in structural equation modeling is the heterotrait-monotrait ratio of correlations (HTMT). However, the HTMT assumes tau-equivalent measurement models, which are unlikely to hold for most empirical studies. To relax this assumption, the authors modify the original HTMT and introduce a new consistent measure for congeneric measurement models: the HTMT2.

Design/methodology/approach

The HTMT2 is designed in analogy to the HTMT but relies on the geometric mean instead of the arithmetic mean. A Monte Carlo simulation compares the performance of the HTMT and the HTMT2. In the simulation, several design factors are varied such as loading patterns, sample sizes and inter-construct correlations in order to compare the estimation bias of the two criteria.

Findings

The HTMT2 provides less biased estimations of the correlations among the latent variables compared to the HTMT, in particular if indicators loading patterns are heterogeneous. Consequently, the HTMT2 should be preferred over the HTMT to assess discriminant validity in case of congeneric measurement models.

Research limitations/implications

However, the HTMT2 can only be determined if all correlations between involved observable variables are positive.

Originality/value

This paper introduces the HTMT2 as an improved version of the traditional HTMT. Compared to other approaches assessing discriminant validity, the HTMT2 provides two advantages: (1) the ease of its computation, since HTMT2 is only based on the indicator correlations, and (2) the relaxed assumption of tau-equivalence. The authors highly recommend the HTMT2 criterion over the traditional HTMT for assessing discriminant validity in empirical studies.

Open Access
Article
Publication date: 10 April 2017

Allard C.R. van Riel, Jörg Henseler, Ildikó Kemény and Zuzana Sasovova

Many important constructs of business and social sciences are conceptualized as composites of common factors, i.e. as second-order constructs composed of reflectively…

14516

Abstract

Purpose

Many important constructs of business and social sciences are conceptualized as composites of common factors, i.e. as second-order constructs composed of reflectively measured first-order constructs. Current approaches to model this type of second-order construct provide inconsistent estimates and lack a model test that helps assess the existence and/or usefulness of a second-order construct. The purpose of this paper is to present a novel three-stage approach to model, estimate, and test second-order constructs composed of reflectively measured first-order constructs.

Design/methodology/approach

The authors compare the efficacy of the proposed three-stage approach with that of the dominant extant approaches, i.e. the repeated indicator approach, the two-stage approach, and the hybrid approach by means of simulated data whose underlying population model is known. Moreover, the authors apply the three-stage approach to a real research setting in business research.

Findings

The study based on simulated data illustrates that the three-stage approach is Fisher-consistent, whereas the dominant extant approaches are not. The study based on real data shows that the three-stage approach is meaningfully applicable in typical research settings of business research. Its results can differ substantially from those of the extant approaches.

Research limitations/implications

Analysts aiming at modeling composites of common factors should apply the proposed procedure in order to test the existence and/or usefulness of a second-order construct and to obtain consistent estimates.

Originality/value

The three-stage approach is the only consistent approach for modeling, estimating, and testing composite second-order constructs made up of reflectively measured first-order constructs.

Details

Industrial Management & Data Systems, vol. 117 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 15 March 2019

Michael Klesel, Florian Schuberth, Jörg Henseler and Bjoern Niehaves

People seem to function according to different models, which implies that in business and social sciences, heterogeneity is a rule rather than an exception. Researchers…

4657

Abstract

Purpose

People seem to function according to different models, which implies that in business and social sciences, heterogeneity is a rule rather than an exception. Researchers can investigate such heterogeneity through multigroup analysis (MGA). In the context of partial least squares path modeling (PLS-PM), MGA is currently applied to perform multiple comparisons of parameters across groups. However, this approach has significant drawbacks: first, the whole model is not considered when comparing groups, and second, the family-wise error rate is higher than the predefined significance level when the groups are indeed homogenous, leading to incorrect conclusions. Against this background, the purpose of this paper is to present and validate new MGA tests, which are applicable in the context of PLS-PM, and to compare their efficacy to existing approaches.

Design/methodology/approach

The authors propose two tests that adopt the squared Euclidean distance and the geodesic distance to compare the model-implied indicator correlation matrix across groups. The authors employ permutation to obtain the corresponding reference distribution to draw statistical inference about group differences. A Monte Carlo simulation provides insights into the sensitivity and specificity of both permutation tests and their performance, in comparison to existing approaches.

Findings

Both proposed tests provide a considerable degree of statistical power. However, the test based on the geodesic distance outperforms the test based on the squared Euclidean distance in this regard. Moreover, both proposed tests lead to rejection rates close to the predefined significance level in the case of no group differences. Hence, our proposed tests are more reliable than an uncontrolled repeated comparison approach.

Research limitations/implications

Current guidelines on MGA in the context of PLS-PM should be extended by applying the proposed tests in an early phase of the analysis. Beyond our initial insights, more research is required to assess the performance of the proposed tests in different situations.

Originality/value

This paper contributes to the existing PLS-PM literature by proposing two new tests to assess multigroup differences. For the first time, this allows researchers to statistically compare a whole model across groups by applying a single statistical test.

Details

Internet Research, vol. 29 no. 3
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 17 October 2016

Georg Fassott, Jörg Henseler and Pedro S. Coelho

The purpose of this paper is to explain how to model moderating effects of composites using partial least squares (PLS) path modeling. It provides the methodological…

3824

Abstract

Purpose

The purpose of this paper is to explain how to model moderating effects of composites using partial least squares (PLS) path modeling. It provides the methodological underpinning of moderating effects in general and describes the various approaches for forming the interaction term, i.e., the product indicator approach, the two-stage approach, and orthogonalization.

Design/methodology/approach

The paper discusses the use of standardized vs unstandardized construct scores and introduces spotlight analysis as a useful way to report findings.

Findings

Researchers should rely on unstandardized estimates when analyzing moderating effects. Centering or orthogonalization can help improve the interpretability of path coefficients.

Practical implications

PLS software implementations should facilitate unstandardized estimates.

Originality/value

This paper formulates step by step guidelines for analyzing moderating effects of composites using PLS path modeling. It is the first to propose spotlight analysis for PLS path modeling.

Details

Industrial Management & Data Systems, vol. 116 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 17 August 2022

Jörg Henseler and Florian Schuberth

In their paper titled “A Miracle of Measurement or Accidental Constructivism? How PLS Subverts the Realist Search for Truth,” Cadogan and Lee (2022) cast serious doubt on…

Abstract

Purpose

In their paper titled “A Miracle of Measurement or Accidental Constructivism? How PLS Subverts the Realist Search for Truth,” Cadogan and Lee (2022) cast serious doubt on PLS’s suitability for scientific studies. The purpose of this commentary is to discuss the claims of Cadogan and Lee, correct some inaccuracies, and derive recommendations for researchers using structural equation models.

Design/methodology/approach

This paper uses scenario analysis to show which estimators are appropriate for reflective measurement models and composite models, and formulates the statistical model that underlies PLS Mode A. It also contrasts two different perspectives: PLS as an estimator for structural equation models vs. PLS-SEM as an overarching framework with a sui generis logic.

Findings

There are different variants of PLS, which include PLS, consistent PLS, PLSe1, PLSe2, proposed ordinal PLS and robust PLS, each of which serves a particular purpose. All of these are appropriate for scientific inquiry if applied properly. It is not PLS that subverts the realist search for truth, but some proponents of a framework called “PLS-SEM.” These proponents redefine the term “reflective measurement,” argue against the assessment of model fit and suggest that researchers could obtain “confirmation” for their model.

Research limitations/implications

Researchers should be more conscious, open and respectful regarding different research paradigms.

Practical implications

Researchers should select a statistical model that adequately represents their theory, not necessarily a common factor model, and formulate their model explicitly. Particularly for instrumentalists, pragmatists and constructivists, the composite model appears promising. Researchers should be concerned about their estimator’s properties, not about whether it is called “PLS.” Further, researchers should critically evaluate their model, not seek confirmation or blindly believe in its value.

Originality/value

This paper critically appraises Cadogan and Lee (2022) and reminds researchers who wish to use structural equation modeling, particularly PLS, for their statistical analysis, of some important scientific principles.

Details

European Journal of Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 2 September 2020

Florian Schuberth, Manuel Elias Rademaker and Jörg Henseler

The purpose of this study is threefold: (1) to propose partial least squares path modeling (PLS-PM) as a way to estimate models containing composites of composites and to…

Abstract

Purpose

The purpose of this study is threefold: (1) to propose partial least squares path modeling (PLS-PM) as a way to estimate models containing composites of composites and to compare the performance of the PLS-PM approaches in this context, (2) to provide and evaluate two testing procedures to assess the overall fit of such models and (3) to introduce user-friendly step-by-step guidelines.

Design/methodology/approach

A simulation is conducted to examine the PLS-PM approaches and the performance of the two proposed testing procedures.

Findings

The simulation results show that the two-stage approach, its combination with the repeated indicators approach and the extended repeated indicators approach perform similarly. However, only the former is Fisher consistent. Moreover, the simulation shows that guidelines neglecting model fit assessment miss an important opportunity to detect misspecified models. Finally, the results show that both testing procedures based on the two-stage approach allow for assessment of the model fit.

Practical implications

Analysts who estimate and assess models containing composites of composites should use the authors’ guidelines, since the majority of existing guidelines neglect model fit assessment and thus omit a crucial step of structural equation modeling.

Originality/value

This study contributes to the understanding of the discussed approaches. Moreover, it highlights the importance of overall model fit assessment and provides insights about testing the fit of models containing composites of composites. Based on these findings, step-by-step guidelines are introduced to estimate and assess models containing composites of composites.

Open Access
Article
Publication date: 29 November 2018

Tobias Müller, Florian Schuberth and Jörg Henseler

As technology in tourism and hospitality (TTH) develops technical artifacts according to visitors’ demands, it must deal with both behavioral and design constructs in the…

4691

Abstract

Purpose

As technology in tourism and hospitality (TTH) develops technical artifacts according to visitors’ demands, it must deal with both behavioral and design constructs in the context of structural equation modeling (SEM). While behavioral constructs are typically modeled as common factors, the study at hand introduces the composite into TTH to model artifacts. To deal with both kinds of constructs, this paper aims to exploit partial least squares path modeling (PLS-PM) as a confirmatory approach to estimate models containing common factors and composites.

Design/methodology/approach

The study at hand presents PLS-PM in its current form, i.e. as a full-fledged approach for confirmatory purposes. By introducing the composite to model artifacts, TTH scholars can use PLS-PM to answer research questions of the type “Is artifact xyz useful?”, contributing to a further understanding of TTH. To demonstrate the composite model, an empirical example is used.

Findings

PLS-PM is a promising approach when the model contains both common factors and composites. By applying the test for overall model fit, empirical evidence can be obtained for latent variables and artifacts. In doing so, researchers can statistically test whether a developed artifact is useful.

Originality/value

To the best of the authors’ knowledge, this is the first study to discuss the practical application of composite and common factor models in TTH research. Besides introducing the composite to model artifacts, the study at hand also guides scholars in the assessment of PLS-PM results.

研究目的

因为旅游酒店科技(TTH)根据游客需求而定制科技产品, TTH必须在结构方程模型(SEM)下结合游客行为和设计等变量。一般行为变量在模型中是常见因子, 本研究将这些变量编入TTH结构成为模块。本研究采用PLS-PM方法来预估含有隐性变量和模块的模型。.

研究设计/方法/途径

本研究设计PLS-PM模式, 即确定性全变量方法。TTH学者们通过引进结构形成模型模块, 使用PLS-PM研究方法, 以回答研究问题“模块xyz有用吗?”, 因此对TTH进一步理解。为了展示复合模型, 本论文采用实际验证。.

研究结果

PLS-PM在面对模块内存在常见因子和复合模块的结构时是有力方法。实际验证结果通过整体最佳模型参数, 得到隐性变量和模块。为此, 研究者们能够在统计方法上测量是否开发的模型模块是否有用。.

研究原创性/研究价值

据作者所知, 本论文是首个研究在TTH领域上应用模块和常见因子模型。本研究引进显性变量在模型模块中, 以指导学者评估PLS-PM结果报告。.

Details

Journal of Hospitality and Tourism Technology, vol. 9 no. 3
Type: Research Article
ISSN: 1757-9880

Keywords

Open Access
Article
Publication date: 13 April 2022

Florian Schuberth, Manuel E. Rademaker and Jörg Henseler

This study aims to examine the role of an overall model fit assessment in the context of partial least squares path modeling (PLS-PM). In doing so, it will explain when it…

1925

Abstract

Purpose

This study aims to examine the role of an overall model fit assessment in the context of partial least squares path modeling (PLS-PM). In doing so, it will explain when it is important to assess the overall model fit and provides ways of assessing the fit of composite models. Moreover, it will resolve major concerns about model fit assessment that have been raised in the literature on PLS-PM.

Design/methodology/approach

This paper explains when and how to assess the fit of PLS path models. Furthermore, it discusses the concerns raised in the PLS-PM literature about the overall model fit assessment and provides concise guidelines on assessing the overall fit of composite models.

Findings

This study explains that the model fit assessment is as important for composite models as it is for common factor models. To assess the overall fit of composite models, researchers can use a statistical test and several fit indices known through structural equation modeling (SEM) with latent variables.

Research limitations/implications

Researchers who use PLS-PM to assess composite models that aim to understand the mechanism of an underlying population and draw statistical inferences should take the concept of the overall model fit seriously.

Practical implications

To facilitate the overall fit assessment of composite models, this study presents a two-step procedure adopted from the literature on SEM with latent variables.

Originality/value

This paper clarifies that the necessity to assess model fit is not a question of which estimator will be used (PLS-PM, maximum likelihood, etc). but of the purpose of statistical modeling. Whereas, the model fit assessment is paramount in explanatory modeling, it is not imperative in predictive modeling.

Details

European Journal of Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0309-0566

Keywords

Content available
Article
Publication date: 17 October 2016

Jörg Henseler

1235

Abstract

Details

Industrial Management & Data Systems, vol. 116 no. 9
Type: Research Article
ISSN: 0263-5577

Article
Publication date: 3 May 2019

Shintaro Okazaki, Charles R. Taylor, Patrick Vargas and Jörg Henseler

An unconscious concern regarding one’s inevitable death, known as mortality salience, may affect consumers’ brand choices in the aftermath of disastrous events, such as…

1564

Abstract

Purpose

An unconscious concern regarding one’s inevitable death, known as mortality salience, may affect consumers’ brand choices in the aftermath of disastrous events, such as earthquakes. The purpose of this paper is to examine the role of self-identification with global consumer culture (IDGCC) in global brand purchase intention in response to disasters that heighten mortality salience. The roles of materialism, consumer ethnocentrism, cosmopolitanism and hope in this this process are also explored.

Design/methodology/approach

An online experiment was conducted with a large sample of Japanese consumers. Japan was selected because it had recently suffered from a series of devastating earthquakes. Participants’ mortality salience was primed with an earthquake scenario. All measures were adapted from prior research. The authors used structural equation modeling to test the hypotheses and validate the model.

Findings

The results reveal that IDGCC is a direct predictor of global brand purchase intention when mortality salience is high. It appears that identifying with global consumer culture and buying global brands enhances self-esteem and reduces anxiety for those with high IDGCC. As predicted, materialism and cosmopolitanism positively influence IDGCC, whereas consumer ethnocentrism does not impede IDGCC. Hope directly and positively affects global brand purchase intention.

Research limitations/implications

Some consumers who experience traumatic events may resist mortality salience and experience a heightened sense of global citizenship. Meanwhile, those with lower IDGCC may revert to in-group favoritism, whereas those with higher IDGCC tend to purchase global brands. Using a scenario to simulate the mental state evoked by a disaster limits generalizability.

Practical implications

The findings illuminate how firms should modify their international marketing strategies in the face of traumatic global events when targeting consumers with high vs low IDGCC in terms of framing messages about global brands. Additionally, using global brands that emphasize an optimistic outlook may help global marketers capture attention from consumers high in IDGCC.

Originality/value

This study is one of the first to address traumatic events and hope, relating these concepts to IDGCC and global brand purchase intention in an international marketing context.

Details

International Marketing Review, vol. 36 no. 5
Type: Research Article
ISSN: 0265-1335

Keywords

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