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1 – 10 of 170
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 network…

4125

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: 25 August 2022

Jan-Michael Becker, Jun-Hwa Cheah, Rasoul Gholamzade, Christian M. Ringle and Marko Sarstedt

Partial least squares structural equation modeling (PLS-SEM) has attracted much attention from both methodological and applied researchers in various disciplines – also in…

8101

Abstract

Purpose

Partial least squares structural equation modeling (PLS-SEM) has attracted much attention from both methodological and applied researchers in various disciplines – also in hospitality management research. As PLS-SEM is relatively new compared to other multivariate analysis techniques, there are still numerous open questions and uncertainties in its application. This study aims to address this important issue by offering guidance regarding its use in contexts with which researchers struggle.

Design/methodology/approach

The authors examine the most prominent questions and answers posed in a well-known PLS-SEM discussion forum. The authors do so by using a text analysis technique to identify the most salient topics.

Findings

The data analysis identifies three salient PLS-SEM topics (i.e. bootstrapping and significance testing, higher-order constructs and moderation).

Research limitations/implications

The results allow us to address the PLS-SEM community’s main methodological issues. The authors discuss each area separately and provide explanations and guidelines.

Practical implications

The guidelines on the most important PLS-SEM topics provide decision-making and application aids. In this way, the authors make a decisive contribution to clarifying ambiguities when applying the PLS-SEM method in hospitality management research and other disciplines.

Originality/value

There has as yet been no systematic analysis of this kind in the field of PLS-SEM; the authors, therefore, present the first research results. The findings and recommendations provide guidance for PLS-SEM applications in hospitality research and practice.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Abstract

Details

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

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 statistical…

2660

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. 57 no. 6
Type: Research Article
ISSN: 0309-0566

Keywords

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 modeling…

84855

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: 17 October 2016

Christian M. Ringle and Marko Sarstedt

The purpose of this paper is to introduce the importance-performance map analysis (IPMA) and explain how to use it in the context of partial least squares structural equation…

11291

Abstract

Purpose

The purpose of this paper is to introduce the importance-performance map analysis (IPMA) and explain how to use it in the context of partial least squares structural equation modeling (PLS-SEM). A case study, drawing on the IPMA module implemented in the SmartPLS 3 software, illustrates the results generation and interpretation.

Design/methodology/approach

The explications first address the principles of the IPMA and introduce a systematic procedure for its use, followed by a detailed discussion of each step. Finally, a case study on the use of technology shows how to apply the IPMA in empirical PLS-SEM studies.

Findings

The IPMA gives researchers the opportunity to enrich their PLS-SEM analysis and, thereby, gain additional results and findings. More specifically, instead of only analyzing the path coefficients (i.e. the importance dimension), the IPMA also considers the average value of the latent variables and their indicators (i.e. performance dimension).

Research limitations/implications

An IPMA is tied to certain requirements, which relate to the measurement scales, variable coding, and indicator weights estimates. Moreover, the IPMA presumes linear relationships. This research does not address the computation and interpretation of non-linear dependencies.

Practical implications

The IPMA is particularly useful for generating additional findings and conclusions by combining the analysis of the importance and performance dimensions in practical PLS-SEM applications. Thereby, the IPMA allows for prioritizing constructs to improve a certain target construct. Expanding the analysis to the indicator level facilitates identifying the most important areas of specific actions. These results are, for example, particularly important in practical studies identifying the differing impacts that certain construct dimensions have on phenomena such as technology acceptance, corporate reputation, or customer satisfaction.

Originality/value

This paper is the first to offer researchers a tutorial and annotated example of an IPMA. Based on a state-of-the-art review of the technique and a detailed explanation of the method, this paper introduces a systematic procedure for running an IPMA. A case study illustrates the analysis, using the SmartPLS 3 software.

Open Access
Article
Publication date: 8 February 2024

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

2963

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.

Details

European Journal of Marketing, vol. 58 no. 13
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 26 February 2019

George Franke and Marko Sarstedt

The purpose of this paper is to review and extend recent simulation studies on discriminant validity measures, contrasting the use of cutoff values (i.e. heuristics) with…

3650

Abstract

Purpose

The purpose of this paper is to review and extend recent simulation studies on discriminant validity measures, contrasting the use of cutoff values (i.e. heuristics) with inferential tests.

Design/methodology/approach

Based on a simulation study, which considers different construct correlations, sample sizes, numbers of indicators and loading patterns, the authors assess each criterion’s sensitivity to type I and type II errors.

Findings

The findings of the simulation study provide further evidence for the robustness of the heterotrait–monotrait (HTMT) ratio of correlations criterion as an estimator of disattenuated (perfectly reliable) correlations between constructs, whose performance parallels that of the standard constrained PHI approach. Furthermore, the authors identify situations in which both methods fail and suggest an alternative criterion.

Originality/value

Addressing the limitations of prior simulation studies, the authors use both directional comparisons (i.e. heuristics) and inferential tests to facilitate the comparison of the HTMT and PHI methods. Furthermore, the simulation considers criteria that have not been assessed in prior research.

Details

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

Keywords

Article
Publication date: 11 October 2018

Jun-Hwa Cheah, Marko Sarstedt, Christian M. Ringle, T. Ramayah and Hiram Ting

Researchers often use partial least squares structural equation modeling (PLS-SEM) to estimate path models that include formatively specified constructs. Their validation requires…

5071

Abstract

Purpose

Researchers often use partial least squares structural equation modeling (PLS-SEM) to estimate path models that include formatively specified constructs. Their validation requires running a redundancy analysis, which tests whether the formatively measured construct is highly correlated with an alternative measure of the same construct. Extending prior knowledge in the field, this paper aims to examine the conditions favoring the use of single vs multiple items to measure the criterion construct in redundancy analyses.

Design/methodology/approach

Merging the literatures from a variety of fields, such as management, marketing and psychometrics, we first provide a theoretical comparison of single-item and multi-item measurement and offer guidelines for designing and validating suitable single items. An empirical comparison in the context of hospitality management examines whether using a single item to measure the criterion variable yields sufficient degrees of convergent validity compared to using a multi-item measure.

Findings

The results of an empirical comparison in the context of hospitality management show that, when the sample size is small, a single item yields higher degrees of convergent validity than a reflective construct does. However, larger sample sizes favor the use of reflectively measured multi-item constructs, but the differences are marginal, thus supporting the use of a global single item in PLS-SEM-based redundancy analyses.

Originality/value

This study is the first to research the efficacy of single-item versus multi-item measures in PLS-SEM-based redundancy analyses. The results illustrate that a convergent validity assessment of formatively measured constructs can be implemented without triggering a pronounced increase in survey length.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 11
Type: Research Article
ISSN: 0959-6119

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 between…

10067

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 170