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Article
Publication date: 17 October 2016

Sandra Streukens and Sara Leroi-Werelds

The purpose of this paper is to provide an illustrated step-by-step guideline of the partial least squares factorial structural equation modeling (PLS FAC-SEM) approach. This…

Abstract

Purpose

The purpose of this paper is to provide an illustrated step-by-step guideline of the partial least squares factorial structural equation modeling (PLS FAC-SEM) approach. This approach allows researchers to assess whether and how model relationships vary as a function of an underlying factorial design, both in terms of the design factors in isolation (i.e. main effects) as well as their joint impact (i.e. interaction effects).

Design/methodology/approach

After an introduction of its building blocks as well as a comparison with related methods (i.e. n-way analysis of variance (ANOVA) and multi-group analysis (MGA)), a step-by-step guideline of the PLS FAC-SEM approach is presented. Each of the steps involved in the PLS FAC-SEM approach is illustrated using data from a customer value study.

Findings

On a methodological level, the key result of this research is the presentation of a generally applicable step-by-step guideline of the PLS FAC-SEM approach. On a context-specific level, the findings demonstrate how the predictive ability of several key customer value measurement methods depends on the type of offering (feel-think), the level of customer involvement (low-high), and their interaction (feel-think offerings×low-high involvement).

Originality/value

This is a first attempt to apply the factorial structural equation models (FAC-SEM) approach in a PLS-SEM context. Consistent with the general differences between PLS-SEM and covariance-based structural equation modeling (CB-SEM), the FAC-SEM approach, which was originally developed for CB-SEM, therefore becomes available for a larger amount of and different types of research situations.

Details

Industrial Management & Data Systems, vol. 116 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Content available
Article
Publication date: 17 October 2016

Jörg Henseler

1413

Abstract

Details

Industrial Management & Data Systems, vol. 116 no. 9
Type: Research Article
ISSN: 0263-5577

Article
Publication date: 6 August 2020

Wynne Chin, Jun-Hwa Cheah, Yide Liu, Hiram Ting, Xin-Jean Lim and Tat Huei Cham

Partial least squares structural equation modeling (PLS-SEM) has become popular in the information systems (IS) field for modeling structural relationships between latent…

3565

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

Industrial Management & Data Systems, vol. 120 no. 12
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 17 October 2016

Georg Fassott, Jörg Henseler and Pedro S. Coelho

The purpose of this paper is to explain how to model moderating effects of composites using partial least squares (PLS) path modeling. It provides the methodological underpinning…

4132

Abstract

Purpose

The purpose of this paper is to explain how to model moderating effects of composites using partial least squares (PLS) path modeling. It provides the methodological underpinning of moderating effects in general and describes the various approaches for forming the interaction term, i.e., the product indicator approach, the two-stage approach, and orthogonalization.

Design/methodology/approach

The paper discusses the use of standardized vs unstandardized construct scores and introduces spotlight analysis as a useful way to report findings.

Findings

Researchers should rely on unstandardized estimates when analyzing moderating effects. Centering or orthogonalization can help improve the interpretability of path coefficients.

Practical implications

PLS software implementations should facilitate unstandardized estimates.

Originality/value

This paper formulates step by step guidelines for analyzing moderating effects of composites using PLS path modeling. It is the first to propose spotlight analysis for PLS path modeling.

Details

Industrial Management & Data Systems, vol. 116 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 17 July 2020

Zaimy Johana Johan, Mohd Zainee Hussain, Rohani Mohd and Badrul Hisham Kamaruddin

The purpose of this paper is to examine the relationship between attitude, subjective norm, perceived behavioural control, religiosity, knowledge and Shariah-compliance with…

1547

Abstract

Purpose

The purpose of this paper is to examine the relationship between attitude, subjective norm, perceived behavioural control, religiosity, knowledge and Shariah-compliance with intention to hold Shariah-compliant credit card (SCCC) amongst Muslims and non-Muslims.

Design/methodology/approach

Researchers used survey questionnaire to collect data and applied a purposive sampling method, then analyzing the data using descriptive statistics and also multi-group analysis of SmartPLS.

Findings

For Muslims, attitude, subjective norm, Shariah-compliance, knowledge and religiosity are positively significant. While for non-Muslims, only attitude and subjective norm are positively significant to intention to hold SCCCs.

Research limitations/implications

The behavioural study only focusses on intention to hold Islamic credit cards, which is constraining the extended model of the theory of planned behaviour (TPB) without the actual performance of the behaviour, which is holding SCCCs. Secondly, the research caters for a single method, namely, quantitative without including the qualitative method to better understand and explore other factors affecting consumers’ behavioural intention. The qualitative part can be carried out by conducting interviews with practitioners, regulators and customers. Thirdly, the cultural dimensions are not combined as parts of TPBs’ antecedents for extended model that could be affecting intention, as Malaysia has diverse ethnic groups with different religious background.

Practical implications

In terms of managerial implications, the findings will further assist financial service providers to develop more effective marketing strategies for Islamic financial products not just to cater for the Muslims but also the non-Muslims, who are increasingly attracted to Islamic banking. As many Muslims are still holding conventional credit cards, it is timely for the Islamic financial institutions to attract them with the SCCCs.

Social implications

Financial marketers are expected to be qualified and well-versed on the different Islamic product structures and also the conventional products. By having such enables them to enlighten and create awareness amongst the targeted consumers in seeking Shariah-compliant financial-related products.

Originality/value

The research will contribute to new theoretical knowledge of an extended behavioural model in relation to customers’ perception towards SCCCs’ acceptance.

Details

Journal of Islamic Marketing, vol. 12 no. 9
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 11 August 2020

María Paula Lechuga Sancho, Manuel Larrán Jorge and Jesus Herrera Madueño

The purpose of this study is to provide an initial, valid and reliable measure of corporate social responsibility (CSR) in small companies from the theoretical perspective of the…

Abstract

Purpose

The purpose of this study is to provide an initial, valid and reliable measure of corporate social responsibility (CSR) in small companies from the theoretical perspective of the stakeholders.

Design/methodology/approach

To design the multi-item scale or measure a factorial analysis was used. This helped the authors develop the CSR assessment tool, measurement instrument and formalize the model connecting observable phenomena to theoretical attributes.

Findings

The results of the analysis provided a four-dimensional structure of CSR, including, employees, customers, the environment and society. Specifically, the authors concluded with an original scale of 24 validated indicators that measures CSR in small and medium enterprises (SMEs). The observed results confirmed the validity of the measure proposed to evaluate the commitment of SMEs to CSR through the level of practices developed with their stakeholders.

Originality/value

The scale developed to assess the level of CSR practices in SMEs stands not only as a valid and reliable measure for future research studies but also as a perfect guide for SMEs managers that want to develop CSR practices in their firms.

Details

Social Responsibility Journal, vol. 17 no. 8
Type: Research Article
ISSN: 1747-1117

Keywords

Book part
Publication date: 6 March 2009

Jörg Henseler, Christian M. Ringle and Rudolf R. Sinkovics

In order to determine the status quo of PLS path modeling in international marketing research, we conducted an exhaustive literature review. An evaluation of double-blind reviewed…

Abstract

In order to determine the status quo of PLS path modeling in international marketing research, we conducted an exhaustive literature review. An evaluation of double-blind reviewed journals through important academic publishing databases (e.g., ABI/Inform, Elsevier ScienceDirect, Emerald Insight, Google Scholar, PsycINFO, Swetswise) revealed that more than 30 academic articles in the domain of international marketing (in a broad sense) used PLS path modeling as means of statistical analysis. We assessed what the main motivation for the use of PLS was in respect of each article. Moreover, we checked for applications of PLS in combination with one or more additional methods, and whether the main reason for conducting any additional method(s) was mentioned.

Details

New Challenges to International Marketing
Type: Book
ISBN: 978-1-84855-469-6

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