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This paper aims to discuss recent criticism related to partial least squares structural equation modeling (PLS-SEM).

Using a combination of literature reviews, empirical examples, and simulation evidence, this research demonstrates that critical accounts of PLS-SEM paint an overly negative picture of PLS-SEM’s capabilities.

Criticisms of PLS-SEM often generalize from boundary conditions with little practical relevance to the method’s general performance, and disregard the metrics and analyses (e.g., Type I error assessment) that are important when assessing the method’s efficacy.

We believe the alleged “fallacies” and “untold facts” have already been addressed in prior research and that the discussion should shift toward constructive avenues by exploring future research areas that are relevant to PLS-SEM applications.

All statistical methods, including PLS-SEM, have strengths and weaknesses. Researchers need to consider established guidelines and recent advancements when using the method, especially given the fast pace of developments in the field.

This research addresses criticisms of PLS-SEM and offers researchers, reviewers, and journal editors a more constructive view of its capabilities.

The purpose of this study is to provide an overview of emerging prediction assessment tools for composite-based PLS-SEM, particularly proposed out-of-sample prediction methodologies.

A review of recently developed out-of-sample prediction assessment tools for composite-based PLS-SEM that will expand the skills of researchers and inform them on new methodologies for improving evaluation of theoretical models. Recently developed and proposed cross-validation approaches for model comparisons and benchmarking are reviewed and evaluated.

The results summarize next-generation prediction metrics that will substantially improve researchers' ability to assess and report the extent to which their theoretical models provide meaningful predictions. Improved prediction assessment metrics are essential to justify (practical) implications and recommendations developed on the basis of theoretical model estimation results.

The paper provides an overview of recently developed and proposed out-of-sample prediction metrics for composite-based PLS-SEM that will enhance the ability of researchers to demonstrate generalization of their findings from sample data to the population.

The purpose of this paper is to theoretically develop and empirically validate separate scales that represent a consumer’s expectations of business ethics (BE) and corporate social responsibility (CSR).

A literature review and qualitative research were conducted to generate items for the scales. Initial item reduction was performed qualitatively based on a panel of experts. A follow-up quantitative assessment using an exploratory factor analysis further reduced the items. The scales were then validated using confirmatory composite analysis with partial least squares-structural equation modeling.

Separate scales representing consumers’ expectations of BE and CSR behaviors were developed. The scales exhibited reliability, convergent validity, discriminant validity and external validity.

The separation of these scales into two components will facilitate more precise examination of consumer perceptions of these two components of product and brand images, and how they may impact brand attitudes and brand trust.

This is the first effort to develop separate scales for consumer expectations of ethics and CSR, and assess their impact on brand outcomes.

The authors aim to present partial least squares (PLS) as an evolving approach to structural equation modeling (SEM), highlight its advantages and limitations and provide an overview of recent research on the method across various fields.

In this review article, the authors merge literatures from the marketing, management, and management information systems fields to present the state-of-the art of PLS-SEM research. Furthermore, the authors meta-analyze recent review studies to shed light on popular reasons for PLS-SEM usage.

PLS-SEM has experienced increasing dissemination in a variety of fields in recent years with nonnormal data, small sample sizes and the use of formative indicators being the most prominent reasons for its application. Recent methodological research has extended PLS-SEM's methodological toolbox to accommodate more complex model structures or handle data inadequacies such as heterogeneity.

While research on the PLS-SEM method has gained momentum during the last decade, there are ample research opportunities on subjects such as mediation or multigroup analysis, which warrant further attention.

This article provides an introduction to PLS-SEM for researchers that have not yet been exposed to the method. The article is the first to meta-analyze reasons for PLS-SEM usage across the marketing, management, and management information systems fields. The cross-disciplinary review of recent research on the PLS-SEM method also makes this article useful for researchers interested in advanced concepts.

Halal food endorsements perceived positively by the focal target group may lead to a negative reaction of consumers that harbor animosity against this target group. For such potentially controversial endorsements, in-group animosity against out-group associated product endorsements could lead to a rejection and even an outspoken disapproval of these food products. The purpose of this paper is to explain what drives in-group reactions to Halal endorsements.

The authors use Social Identity Theory and the Social Dominance Theory in explaining animosity toward out-groups and willingness to buy products with Halal endorsements. Specifically, the authors analyze the reaction of more than 800 in-group majority Christians toward out-group minority Muslim directed Halal endorsements. Following the development of hypotheses and a conceptual model, structural equation modeling is used to measure the relationships between the constructs.

Constructs based on Social Dominance Theory and Social Identity Theory predict animosity toward out-group endorsements, but the relationship between Social Dominance Theory and animosity is much stronger. Animosity is a mediator between these two constructs and willingness to purchase products with out-group focussed endorsements (Halal).

The research has been conducted in one particular country (Austria) and focusses on a specific type of controversial endorsement, namely a religious (Halal) endorsement. Other research contexts (i.e. other countries and/or different types of controversial endorsements) should be used to widen the empirical base and validate the findings.

Marketers should be aware of a possible negative impact of out-group focussed endorsements. In particular, they should be cognizant that racism and ethnocentrism prevailing in a society could reduce the purchase intent of in-groups.

Efforts are required to combat the drivers of animosity between in-groups and out-groups. This paper provides insights on how this may be achieved.

This study focusses on a hitherto neglected phenomenon, i.e. controversial endorsements. It uses two alternative theories and advances the understanding of the role of animosity in a domestic consumer setting; an issue that has nearly exclusively been discussed with regard to cross-border purchasing.

The purpose of this paper is to provide an overview of unobserved heterogeneity in the context of partial least squares structural equation modeling (PLS-SEM), its prevalence and challenges for social science researchers. Part II – in the next issue (European Business Review, Vol. 28 No. 2) – presents a case study, which illustrates how to identify and treat unobserved heterogeneity in PLS-SEM using the finite mixture PLS (FIMIX-PLS) module in the SmartPLS 3 software.

The paper merges literatures from various disciplines, such as management information systems, marketing and statistics, to present a state-of-the-art review of FIMIX-PLS. Based on this review, the paper offers guidelines on how to apply the technique to specific research problems.

FIMIX-PLS offers a means to identify and treat unobserved heterogeneity in PLS-SEM and is particularly useful for determining the number of segments to extract from the data. In the latter respect, prior applications of FIMIX-PLS restricted their focus to a very limited set of criteria, but future studies should broaden the scope by considering information criteria, theory and logic.

Since the introduction of FIMIX-PLS, a range of alternative latent class techniques have emerged to address some of the limitations of the approach relating, for example, to the technique’s inability to handle heterogeneity in the measurement models and its distributional assumptions. The second part of this article (Part II) discusses alternative latent class techniques in greater detail and calls for the joint use of FIMIX-PLS and PLS prediction-oriented segmentation.

This paper is the first to offer researchers who have not been exposed to the method an introduction to FIMIX-PLS. Based on a state-of-the-art review of the technique in Part I, Part II follows up by offering a step-by-step tutorial on how to use FIMIX-PLS in SmartPLS 3.

This study aims to investigate the relationship between bank policy-related practices and green financing sustainability in Pakistan. The study uses a mediating-moderation analysis to examine how the influence of bank policies on green financing sustainability is mediated by green banking activities and moderated by the employees’ green value and green knowledge sharing.

In this study, a structural questionnaire was used to gather data from Pakistani bank personnel through stratified sampling. A two-stage structural equation modelling approach was used in this investigation. The measuring scale’s validity and reliability are assessed using the measure model. A structural model was used to ascertain the connection between the underpinning constructs.

This study found a positive significant effect on bank employed related practices on green banking activities, besides the mediate role of green banking activities between the bank policies-related practices and green financing. In addition, this study also found the moderating role of employees’ green value and green knowledge sharing on the relationship of bank policies-related practices and green banking activities as well as green banking activities and green financing, respectively.

As environmental sustainability becomes more and more important on a worldwide scale; the study looks into the ways that financial institutions may become more environmentally conscious and help create a more sustainable future. To shed light on the ways in which financial institutions can be crucial in advancing green sustainability in an emerging economy such as Pakistan, this study used sophisticated statistical tools.