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1 – 10 of over 1000Joseph 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 modeling…
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.
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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 network…
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.
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Joseph F. Hair, Pratyush N. Sharma, Marko Sarstedt, Christian M. Ringle and Benjamin D. Liengaard
The purpose of this paper is to assess the appropriateness of equal weights estimation (sumscores) and the application of the composite equivalence index (CEI) vis-à-vis…
Abstract
Purpose
The purpose of this paper is to assess the appropriateness of equal weights estimation (sumscores) and the application of the composite equivalence index (CEI) vis-à-vis differentiated indicator weights produced by partial least squares structural equation modeling (PLS-SEM).
Design/methodology/approach
The authors rely on prior literature as well as empirical illustrations and a simulation study to assess the efficacy of equal weights estimation and the CEI.
Findings
The results show that the CEI lacks discriminatory power, and its use can lead to major differences in structural model estimates, conceals measurement model issues and almost always leads to inferior out-of-sample predictive accuracy compared to differentiated weights produced by PLS-SEM.
Research limitations/implications
In light of its manifold conceptual and empirical limitations, the authors advise against the use of the CEI. Its adoption and the routine use of equal weights estimation could adversely affect the validity of measurement and structural model results and understate structural model predictive accuracy. Although this study shows that the CEI is an unsuitable metric to decide between equal weights and differentiated weights, it does not propose another means for such a comparison.
Practical implications
The results suggest that researchers and practitioners should prefer differentiated indicator weights such as those produced by PLS-SEM over equal weights.
Originality/value
To the best of the authors’ knowledge, this study is the first to provide a comprehensive assessment of the CEI’s usefulness. The results provide guidance for researchers considering using equal indicator weights instead of PLS-SEM-based weighted indicators.
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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 statistical…
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.
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Gabriel Cepeda-Carrión, Joseph F. Hair, Christian M. Ringle, José Luis Roldán and Jerónimo García-Fernández
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…
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.
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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 equation…
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.
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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 deeply…
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.
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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 between…
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.
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