Search results

1 – 10 of over 1000
Article
Publication date: 14 January 2019

Joseph F. Hair, Jeffrey J. Risher, Marko Sarstedt and Christian M. Ringle

The purpose of this paper is to provide a comprehensive, yet concise, overview of the considerations and metrics required for partial least squares structural equation…

63973

Abstract

Purpose

The purpose of this paper is to provide a comprehensive, yet concise, overview of the considerations and metrics required for partial least squares structural equation modeling (PLS-SEM) analysis and result reporting. Preliminary considerations are summarized first, including reasons for choosing PLS-SEM, recommended sample size in selected contexts, distributional assumptions, use of secondary data, statistical power and the need for goodness-of-fit testing. Next, the metrics as well as the rules of thumb that should be applied to assess the PLS-SEM results are covered. Besides presenting established PLS-SEM evaluation criteria, the overview includes the following new guidelines: PLSpredict (i.e., a novel approach for assessing a model’s out-of-sample prediction), metrics for model comparisons, and several complementary methods for checking the results’ robustness.

Design/methodology/approach

This paper provides an overview of previously and recently proposed metrics as well as rules of thumb for evaluating the research results based on the application of PLS-SEM.

Findings

Most of the previously applied metrics for evaluating PLS-SEM results are still relevant. Nevertheless, scholars need to be knowledgeable about recently proposed metrics (e.g. model comparison criteria) and methods (e.g. endogeneity assessment, latent class analysis and PLSpredict), and when and how to apply them to extend their analyses.

Research limitations/implications

Methodological developments associated with PLS-SEM are rapidly emerging. The metrics reported in this paper are useful for current applications, but must always be up to date with the latest developments in the PLS-SEM method.

Originality/value

In light of more recent research and methodological developments in the PLS-SEM domain, guidelines for the method’s use need to be continuously extended and updated. This paper is the most current and comprehensive summary of the PLS-SEM method and the metrics applied to assess its solutions.

Details

European Business Review, vol. 31 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 26 February 2019

Gohar F. Khan, Marko Sarstedt, Wen-Lung Shiau, Joseph F. Hair, Christian M. Ringle and Martin P. Fritze

The purpose of this paper is to explore the knowledge infrastructure of methodological research on partial least squares structural equation modeling (PLS-SEM) from a…

2990

Abstract

Purpose

The purpose of this paper is to explore the knowledge infrastructure of methodological research on partial least squares structural equation modeling (PLS-SEM) from a network point of view. The analysis involves the structures of authors, institutions, countries and co-citation networks, and discloses trending developments in the field.

Design/methodology/approach

Based on bibliometric data downloaded from the Web of Science, the authors apply various social network analysis (SNA) and visualization tools to examine the structure of knowledge networks of the PLS-SEM domain. Specifically, the authors investigate the PLS-SEM knowledge network by analyzing 84 methodological studies published in 39 journals by 145 authors from 106 institutions.

Findings

The analysis reveals that specific authors dominate the network, whereas most authors work in isolated groups, loosely connected to the network’s focal authors. Besides presenting the results of a country level analysis, the research also identifies journals that play a key role in disseminating knowledge in the network. Finally, a burst detection analysis indicates that method comparisons and extensions, for example, to estimate common factor model data or to leverage PLS-SEM’s predictive capabilities, feature prominently in recent research.

Originality/value

Addressing the limitations of prior systematic literature reviews on the PLS-SEM method, this is the first study to apply SNA to reveal the interrelated structures and properties of PLS-SEM’s research domain.

Article
Publication date: 14 July 2022

Pratyush N. Sharma, Benjamin D. Liengaard, Joseph F. Hair, Marko Sarstedt and Christian M. Ringle

Researchers often stress the predictive goals of their partial least squares structural equation modeling (PLS-SEM) analyses. However, the method has long lacked a…

Abstract

Purpose

Researchers often stress the predictive goals of their partial least squares structural equation modeling (PLS-SEM) analyses. However, the method has long lacked a statistical test to compare different models in terms of their predictive accuracy and to establish whether a proposed model offers a significantly better out-of-sample predictive accuracy than a naïve benchmark. This paper aims to address this methodological research gap in predictive model assessment and selection in composite-based modeling.

Design/methodology/approach

Recent research has proposed the cross-validated predictive ability test (CVPAT) to compare theoretically established models. This paper proposes several extensions that broaden the scope of CVPAT and explains the key choices researchers must make when using them. A popular marketing model is used to illustrate the CVPAT extensions’ use and to make recommendations for the interpretation and benchmarking of the results.

Findings

This research asserts that prediction-oriented model assessments and comparisons are essential for theory development and validation. It recommends that researchers routinely consider the application of CVPAT and its extensions when analyzing their theoretical models.

Research limitations/implications

The findings offer several avenues for future research to extend and strengthen prediction-oriented model assessment and comparison in PLS-SEM.

Practical implications

Guidelines are provided for applying CVPAT extensions and reporting the results to help researchers substantiate their models’ predictive capabilities.

Originality/value

This research contributes to strengthening the predictive model validation practice in PLS-SEM, which is essential to derive managerial implications that are typically predictive in nature.

Details

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

Keywords

Abstract

Details

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

Article
Publication date: 9 September 2022

Scott C. Manley, Ralph I. Williams Jr. and Joseph F. Hair Jr.

Given the positive organizational principles associated with total quality management (TQM) – customer focus, continuous improvement, and process management – one would…

Abstract

Purpose

Given the positive organizational principles associated with total quality management (TQM) – customer focus, continuous improvement, and process management – one would assume TQM's application is universally beneficial across businesses. Generally, research supports that notion. However, given resource limitations and shallow management teams in small businesses, there are multiple challenges in implementing TQM in small and medium-sized enterprises (SMEs). Therefore, small business leaders should benefit from knowledge linking other management practices to TQM’s positive effect on small firm performance, which enhances these leaders' return on TQM investment.

Design/methodology/approach

The authors apply partial least squares structural equation modeling (PLS-SEM) to explore TQM’s effect on small business performance and how other management practices enhance that relationship. Specifically, the authors explore how a comprehensive strategic approach (CSA) – a higher-order construct consisting of strategic planning, goal setting, and financial ratio analysis – moderates the relationship between TQM and small business performance. Given the complexity of the authors' model, the application of higher-order constructs, and the exploratory nature of this work, PLS-SEM is well suited for this study.

Findings

Consistent with prior research, the authors found that TQM (also a higher-order construct, consisting of seven lower-order constructs) positively impacts small firm performance. In addition, the authors found that CSA positively moderates the relationship between TQM and financial performance.

Originality/value

TQM’s effect on small business performance is enhanced when leaders implement a CSA. In other words, when small business leaders strategically plan, set goals, and analyze financial ratios, TQM's positive effect on firm performance is enhanced. This finding provides business leaders insights for how to maximize the TQM investment return.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Abstract

Details

International Journal of Sports Marketing and Sponsorship, vol. 23 no. 2
Type: Research Article
ISSN: 1464-6668

Article
Publication date: 27 March 2019

Joseph F. Hair, Marko Sarstedt and Christian M. Ringle

Partial least squares structural equation modeling (PLS-SEM) is an important statistical technique in the toolbox of methods that researchers in marketing and other social…

3400

Abstract

Purpose

Partial least squares structural equation modeling (PLS-SEM) is an important statistical technique in the toolbox of methods that researchers in marketing and other social sciences disciplines frequently use in their empirical analyses. The purpose of this paper is to shed light on several misconceptions that have emerged as a result of the proposed “new guidelines” for PLS-SEM. The authors discuss various aspects related to current debates on when or when not to use PLS-SEM, and which model evaluation metrics to apply. In addition, this paper summarizes several important methodological extensions of PLS-SEM researchers can use to improve the quality of their analyses, results and findings.

Design/methodology/approach

The paper merges literature from various disciplines, including marketing, strategic management, information systems, accounting and statistics, to present a state-of-the-art review of PLS-SEM. Based on these findings, the paper offers a point of orientation on how to consider and apply these latest developments when executing or assessing PLS-SEM-based research.

Findings

This paper offers guidance regarding situations that favor the use of PLS-SEM and discusses the need to consider certain model evaluation metrics. It also summarizes how to deal with endogeneity in PLS-SEM, and critically comments on the recent proposal to adjust PLS-SEM estimates to mimic common factor models that are the foundation of covariance-based SEM. Finally, this paper opposes characterizing common concepts and practices of PLS-SEM as “out-of-date” without providing well-substantiated alternatives and solutions.

Research limitations/implications

The paper paves the way for future discussions and suggests a way forward to reach consensus regarding situations that favor PLS-SEM use and its application.

Practical implications

This paper offers guidance on how to consider the latest methodological developments when executing or assessing PLS-SEM-based research.

Originality/value

This paper complements recently proposed “new guidelines” with the aim of offering a counter perspective on some strong claims made in the latest literature on PLS-SEM. It also clarifies some misconceptions regarding the application of PLS-SEM.

Details

European Journal of Marketing, vol. 53 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 14 March 2016

Lucy M. Matthews, Marko Sarstedt, Joseph F. Hair and Christian M. Ringle

Part I of this article (European Business Review, Volume 28, Issue 1) offered an overview of unobserved heterogeneity in the context of partial least squares structural…

2398

Abstract

Purpose

Part I of this article (European Business Review, Volume 28, Issue 1) offered an overview of unobserved heterogeneity in the context of partial least squares structural equation modeling (PLS-SEM), its prevalence and challenges for social sciences researchers. This paper aims to provide an example that explains how to identify and treat unobserved heterogeneity in PLS-SEM by using the finite mixture PLS (FIMIX-PLS) module in the SmartPLS 3 software (Part II).

Design/methodology/approach

This case study illustrates the application of FIMIX-PLS using a popular corporate reputation model.

Findings

The case study demonstrates the capability of FIMIX-PLS to identify whether unobserved heterogeneity significantly affects structural model relationships. Furthermore, it shows that FIMIX-PLS is particularly useful for determining the number of segments to extract from the data.

Research limitations/implications

Since the introduction of FIMIX-PLS, a range of alternative latent class techniques has appeared. These techniques address some of the limitations of the approach relating to, for example, its failure to handle heterogeneity in measurement models, or its distributional assumptions. This research discusses alternative latent class techniques and calls for the joint use of FIMIX-PLS and PLS prediction-oriented segmentation.

Originality/value

This article 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, the paper offers a step-by-step tutorial on how to use FIMIX-PLS by using the SmartPLS 3 software.

Details

European Business Review, vol. 28 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

Open Access
Article
Publication date: 8 October 2019

Joseph F. Hair, Marcelo L.D.S. Gabriel, Dirceu da Silva and Sergio Braga Junior

This paper aims to present the fundamental aspects for the development and validation (D&V) of attitudes’ measurement scale, as well as its practical aspects that are not…

11915

Abstract

Purpose

This paper aims to present the fundamental aspects for the development and validation (D&V) of attitudes’ measurement scale, as well as its practical aspects that are not deeply explored in books and manuals. These aspects are the results of a long experience of the authors and arduous learning with errors and mistakes.

Design/methodology/approach

The nature of this paper is methodological and can be very useful for an initial reading on the theme that it rests. This paper presents four D&V stages: literature review or interviews with experts; theoretical or face validation; semantic validation or validation with possible respondents; and statistical validation.

Findings

This is a methodological paper, and its main finding is the usefulness for researchers.

Research limitations/implications

The main implication of this paper is to support researchers on the process of D&V of measurement scales.

Practical implications

Became a step-by-step guide to researchers on the D&V of measurement scales.

Social implications

Support researchers on their data collection and analysis.

Originality/value

This is a practical guide, with tips from seasoned scholars to help researchers on the D&V of measurement scales.

Details

RAUSP Management Journal, vol. 54 no. 4
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 25 June 2019

Galit Shmueli, Marko Sarstedt, Joseph F. Hair, Jun-Hwa Cheah, Hiram Ting, Santha Vaithilingam and Christian M. Ringle

Partial least squares (PLS) has been introduced as a “causal-predictive” approach to structural equation modeling (SEM), designed to overcome the apparent dichotomy…

5810

Abstract

Purpose

Partial least squares (PLS) has been introduced as a “causal-predictive” approach to structural equation modeling (SEM), designed to overcome the apparent dichotomy between explanation and prediction. However, while researchers using PLS-SEM routinely stress the predictive nature of their analyses, model evaluation assessment relies exclusively on metrics designed to assess the path model’s explanatory power. Recent research has proposed PLSpredict, a holdout sample-based procedure that generates case-level predictions on an item or a construct level. This paper offers guidelines for applying PLSpredict and explains the key choices researchers need to make using the procedure.

Design/methodology/approach

The authors discuss the need for prediction-oriented model evaluations in PLS-SEM and conceptually explain and further advance the PLSpredict method. In addition, they illustrate the PLSpredict procedure’s use with a tourism marketing model and provide recommendations on how the results should be interpreted. While the focus of the paper is on the PLSpredict procedure, the overarching aim is to encourage the routine prediction-oriented assessment in PLS-SEM analyses.

Findings

The paper advances PLSpredict and offers guidance on how to use this prediction-oriented model evaluation approach. Researchers should routinely consider the assessment of the predictive power of their PLS path models. PLSpredict is a useful and straightforward approach to evaluate the out-of-sample predictive capabilities of PLS path models that researchers can apply in their studies.

Research limitations/implications

Future research should seek to extend PLSpredict’s capabilities, for example, by developing more benchmarks for comparing PLS-SEM results and empirically contrasting the earliest antecedent and the direct antecedent approaches to predictive power assessment.

Practical implications

This paper offers clear guidelines for using PLSpredict, which researchers and practitioners should routinely apply as part of their PLS-SEM analyses.

Originality/value

This research substantiates the use of PLSpredict. It provides marketing researchers and practitioners with the knowledge they need to properly assess, report and interpret PLS-SEM results. Thereby, this research contributes to safeguarding the rigor of marketing studies using PLS-SEM.

Details

European Journal of Marketing, vol. 53 no. 11
Type: Research Article
ISSN: 0309-0566

Keywords

1 – 10 of over 1000