Search results

Partial least squares structural equation modeling (PLS-SEM) has become popular in the information systems (IS) field for modeling structural relationships between latent variables as measured by manifest variables. However, while researchers using PLS-SEM routinely stress the causal-predictive nature of their analyses, the model evaluation assessment relies exclusively on criteria designed to assess the path model's explanatory power. To take full advantage of the purpose of causal prediction in PLS-SEM, it is imperative for researchers to comprehend the efficacy of various quality criteria, such as traditional PLS-SEM criteria, model fit, PLSpredict, cross-validated predictive ability test (CVPAT) and model selection criteria.

A systematic review was conducted to understand empirical studies employing the use of the causal prediction criteria available for PLS-SEM in the database of Industrial Management and Data Systems (IMDS) and Management Information Systems Quarterly (MISQ). Furthermore, this study discusses the details of each of the procedures for the causal prediction criteria available for PLS-SEM, as well as how these criteria should be interpreted. While the focus of the paper is on demystifying the role of causal prediction modeling in PLS-SEM, the overarching aim is to compare the performance of different quality criteria and to select the appropriate causal-predictive model from a cohort of competing models in the IS field.

The study found that the traditional PLS-SEM criteria (goodness of fit (GoF) by Tenenhaus, R2 and Q2) and model fit have difficulty determining the appropriate causal-predictive model. In contrast, PLSpredict, CVPAT and model selection criteria (i.e. Bayesian information criterion (BIC), BIC weight, Geweke–Meese criterion (GM), GM weight, HQ and HQC) were found to outperform the traditional criteria in determining the appropriate causal-predictive model, because these criteria provided both in-sample and out-of-sample predictions in PLS-SEM.

This research substantiates the use of the PLSpredict, CVPAT and the model selection criteria (i.e. BIC, BIC weight, GM, GM weight, HQ and HQC). It provides IS researchers and practitioners with the knowledge they need to properly assess, report on and interpret PLS-SEM results when the goal is only causal prediction, thereby contributing to safeguarding the goal of using PLS-SEM in IS studies.

The partial least squares structural equation modeling (PLS-SEM) approach for construction management (CM) scholars has become the preferred approach for its capability of assessing the complex relationship and relaxed normality and sample size assumptions. This paper systematically maps the structure of knowledge about PLS-SEM in CM using bibliometric analysis. Also, the study employs meta-analysis to explore how data and model characteristics, model evaluation and advanced modeling techniques have been utilized in the CM domain.

This study integrated two methods: bibliometric analysis on a sample of 211 articles identified using the PRISMA framework and meta-analysis on 163 articles identified based on the availability of full-length articles and relevant information.

The results revealed the leading knowledge formation entities (countries, institutions, authors, sources and documents). Also, the study employs full content analysis to identify six research themes, and meta-analysis is used to explore the use of PLS-SEM based on the following criteria: (1) reasons for using PLS-SEM in CM, (2) data characteristics, (3) model characteristics and evaluation and (4) use of advanced modeling and analysis techniques. Further, the study uses regression analysis and identifies “advanced modeling and analysis techniques” as the critical feature responsible for the publication in a journal with high scientific prestige. Finally, the study presented the comprehensive guidelines to be used by construction management scholars who wish to use PLS-SEM in their research work.

To the author’s knowledge, it is the first study of this kind to use PLS-SEM in CM research. This study provides an extensive analysis of the Scopus database and an in-depth review of the data characteristics, model characteristics and use of advanced modeling techniques in CM research.

In management accounting research, the capabilities of Partial Least Squares Structural Equation Modelling (PLS-SEM) have only partially been utilized. These yet unexploited capabilities of PLS-SEM are a useful tool in the often explorative state of research in management accounting. After reviewing eleven top-ranked management accounting journals through the end of 2013, 37 articles in which PLS-SEM is used are identified. These articles are analysed based on multiple relevant criteria to determine the progress in this research area, including the reasons for using PLS-SEM, the characteristics of the data and the models, and model evaluation and reporting. A special focus is placed on the degree of importance of these analysed criteria for the future development of management accounting research. To ensure continued theoretical development in management accounting, this article also offers recommendations to avoid common pitfalls and provides guidance for the advanced use of PLS-SEM in management accounting research.

This study aims to evaluate the usage of partial least squares structural equation modeling (PLS-SEM) in journals related to logistics and supply chain management (LSCM).

Based on a structured literature review approach, the authors reviewed 401 articles in the field of LSCM applying PLS-SEM published in 15 major journals between 2014 and 2022. The analysis focused on reasons for using PLS-SEM, measurement model and structural model evaluation criteria, advanced analysis techniques and reporting practices.

LSCM researchers sometimes did not clarify the reasons for using PLS-SEM, such as sample size, complex models and non-normal distributions. Additionally, most articles exhibit limited use of measurement models and structural model evaluation techniques, leading to inappropriate use of assessment criteria. Furthermore, progress in the practical implementation of advanced analysis techniques is slow, and there is a need for improved transparency in reporting analysis algorithms.

This study contributes to the field of LSCM by providing clear criteria and steps for using PLS-SEM, enriching the understanding and advancement of research methodologies in this field.

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.

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.

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.

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.

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

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.

The purpose of this study is to review the use of partial least squares-structural equation modeling (PLS-SEM) in the field of hospitality and tourism and thereby to assess whether the PLS-SEM-based papers followed the recommended application guidelines and to investigate whether a comparison of journal types (hospitality vs tourism) and journal qualities (top-tier vs other leading) reveal significant differences in PLS-SEM use.

A total of 206 PLS-SEM based papers published between 2000 and April 2017 in the 19 SSCI-indexed hospitality and tourism journals were critically analyzed using a wide range of guidelines for the following aspects of PLS-SEM: the rationale of using the method, the data characteristics, the model characteristics, the model assessment and reporting the technical issues.

The results reveal that some aspects of PLS-SEM are correctly applied by researchers, but there are still some misapplications, especially regarding data characteristics, formative measurement model evaluation and structural model assessment. Furthermore, few significant differences were found on the use of PLS-SEM between the two fields (hospitality and tourism) and between the journal tiers (top-tier and other leading).

To enhance the quality of research in hospitality and tourism, the present study provides recommendations for improving the future use of PLS-SEM.

The present study fills a sizeable gap in hospitality and tourism literature and extends the previous assessments on the use of PLS-SEM by providing a wider perspective on the issue (i.e. includes both hospitality and tourism journals rather than the previous reviews that focus on either tourism or hospitality), using a larger sample size of 206 empirical studies, investigating the issue over a longer time period (from 2000 to April, 2017, including the in-press articles), extending the scope of criteria (guidelines) used in the review and comparing the PLS-SEM use between the two allied fields (hospitality and tourism) and between the journal tiers (top-tier and other leading).

Expanded awareness and application of recent PLS-SEM reporting practices were again called for by Hair (2022) in his PLS 2022 Keynote Address. This paper aims to analyze and extend the application of PLS-SEM in Industrial Management and Data Systems (IMDS) to focus on trends emerging in the more recent 2016–2022 period.

A review of PLS-SEM applications in information systems studies published in IMDS and MISQ for the period 2012–2022 identifies and comments on a total of 135 articles. Selected emerging advanced analytical PLS-SEM applications are also highlighted to expand awareness of their value in more rigorously evaluating model results.

There is a continually increasing maturity of the information systems field in applying PLS-SEM, particularly for IMDS authors. Model complexity and improved prediction assessment as well as other advanced analytical options are increasingly identified as reasons for applying PLS-SEM.

Findings demonstrate the continued use and acceptance of PLS-SEM as a useful alternative research methodology within IS. PLS-SEM is the preferred SEM method in many research settings, but particularly when the research objective is prediction to the population, mediation and mediated moderation, formative constructs are specified, constructs must be modeled as higher-order and for competing model comparisons.

This update on PLS-SEM applications and recent methodological developments will help authors to better understand and apply the method, as well as publish their work. Researchers are encouraged to engage in more complete analyses and include enhanced reporting procedures.

Applications of PLS-SEM for prediction, theory testing and confirmation are increasing. Information systems scholars should continue to exercise sound practice by reporting reasons for using PLS-SEM and recognizing its wider applicability for both exploratory and confirmatory research.

Structural equation modeling (SEM) has been widely used to examine complex research models in international business and marketing research. While the covariance-based SEM (CB-SEM) approach is dominant, the authors argue that the field’s dynamic nature and the sometimes early stage of theory development more often require a partial least squares SEM (PLS-SEM) approach. The purpose of this paper is to critically review the application of SEM techniques in the field.

The authors searched six journals with an international business (and marketing) focus (Management International Review, Journal of International Business Studies, Journal of International Management, International Marketing Review, Journal of World Business, International Business Review) from 1990 to 2013. The authors reviewed all articles that apply SEM, analyzed their research objectives and methodology choices, and assessed whether the PLS-SEM papers followed the best practices outlined in the past.

Of the articles, 379 utilized CB-SEM and 45 PLS-SEM. The reasons for using PLS-SEM referred largely to sampling and data measurement issues and did not sufficiently build on the procedure’s benefits that stem from its design for predictive and exploratory purposes. Thus, the procedure’s key benefits, which might be fruitful for the theorizing process, are not being fully exploited. Furthermore, authors need to better follow best practices to truly advance theory building.

The authors examined a subset of journals in the field and did not include general management journals that publish international business and marketing-related studies. Fur-thermore, the authors found only limited use of PLS-SEM in the journals the authors considered relevant to the study.

The study contributes to the literature by providing researchers seeking to adopt SEM as an analytical method with practical guidelines for making better choices concerning an appropriate SEM approach. Furthermore, based on a systematic review of current practices in the international business and marketing literature, the authors identify critical challenges in the selection and use of SEM procedures and offer concrete recommendations for better practice.

Following the call for awareness of accepted reporting practices by Ringle, Sarstedt, and Straub in 2012, the purpose of this paper is to review and analyze the use of partial least squares structural equation modeling (PLS-SEM) in Industrial Management & Data Systems (IMDS) and extend MIS Quarterly (MISQ) applications to include the period 2012-2014.

Review of PLS-SEM applications in information systems (IS) studies published in IMDS and MISQ for the period 2010-2014 identifying a total of 57 articles reporting the use of or commenting on PLS-SEM.

The results indicate an increased maturity of the IS field in using PLS-SEM for model complexity and formative measures and not just small sample sizes and non-normal data.

Findings demonstrate the continued use and acceptance of PLS-SEM as an accepted research method within IS. PLS-SEM is discussed as the preferred SEM method when the research objective is prediction.

This update on PLS-SEM use and recent developments will help authors to better understand and apply the method. Researchers are encouraged to engage in complete reporting procedures.

Applications of PLS-SEM for exploratory research and theory development are increasing. IS scholars should continue to exercise sound practice by reporting reasons for using PLS-SEM and recognizing its wider applicability for research. Recommended reporting guidelines following Ringle et al. (2012) and Gefen et al. (2011) are included. Several important methodological updates are included as well.

Tourism research contains a large share of consumer behavior-orientated studies using multidimensional constructs (exogenous/endogenous). Accordingly, scholars have mainly made use of a two-step approach that can be referred to as PCA-MLR (principal component analysis and then ordinary least squares multiple linear regression analysis) to examine the relationships among exogenous and endogenous constructs in a statistical model. Although this two-step approach has contributed to the advancement of tourism research, it still suffers from a number of drawbacks which can readily be overcome by a so-called second-generation statistical tool, namely, partial least squares approach to structural equation modeling (PLS-SEM). The current chapter explains and illustrates (with an application to tourism data) the advantages (e.g., several layers of estimations, suiting small sample sizes, robustness to multicollinearity, model-based clustering, etc.) of PLS-SEM both from a statistical and practical point of view. Finally, an elucidation is also provided for suggesting PLS-SEM as an alternative to PCA-MLR instead of COV-SEM (covariance-based structural equation modeling). The chapter concludes by proposing that PLS-SEM is a reliable and flexible statistical approach that is of high value, in particular, for applied research.