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Book part

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…

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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Book part

Edward E. Rigdon, Christian M. Ringle and Marko Sarstedt

Alongside structural equation modeling (SEM), the complementary technique of partial least squares (PLS) path modeling helps researchers understand relations among sets of…

Abstract

Alongside structural equation modeling (SEM), the complementary technique of partial least squares (PLS) path modeling helps researchers understand relations among sets of observed variables. Like SEM, PLS began with an assumption of homogeneity – one population and one model – but has developed techniques for modeling data from heterogeneous populations, consistent with a marketing emphasis on segmentation. Heterogeneity can be expressed through interactions and nonlinear terms. Additionally, researchers can use multiple group analysis and latent class methods. This chapter reviews these techniques for modeling heterogeneous data in PLS, and illustrates key developments in finite mixture modeling in PLS using the SmartPLS 2.0 package.

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-475-8

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Article

Jörg Henseler, Geoffrey Hubona and Pauline Ash Ray

Partial least squares (PLS) path modeling is a variance-based structural equation modeling (SEM) technique that is widely applied in business and social sciences. Its…

Abstract

Purpose

Partial least squares (PLS) path modeling is a variance-based structural equation modeling (SEM) technique that is widely applied in business and social sciences. Its ability to model composites and factors makes it a formidable statistical tool for new technology research. Recent reviews, discussions, and developments have led to substantial changes in the understanding and use of PLS. The paper aims to discuss these issues.

Design/methodology/approach

This paper aggregates new insights and offers a fresh look at PLS path modeling. It presents new developments, such as consistent PLS, confirmatory composite analysis, and the heterotrait-monotrait ratio of correlations.

Findings

PLS path modeling is the method of choice if a SEM contains both factors and composites. Novel tests of exact fit make a confirmatory use of PLS path modeling possible.

Originality/value

This paper provides updated guidelines of how to use PLS and how to report and interpret its results.

Details

Industrial Management & Data Systems, vol. 116 no. 1
Type: Research Article
ISSN: 0263-5577

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Book part

Marko Sarstedt, Jörg Henseler and Christian M. Ringle

Purpose – Partial least squares (PLS) path modeling has become a pivotal empirical research method in international marketing. Owing to group comparisons' important role…

Abstract

Purpose – Partial least squares (PLS) path modeling has become a pivotal empirical research method in international marketing. Owing to group comparisons' important role in research on international marketing, we provide researchers with recommendations on how to conduct multigroup analyses in PLS path modeling.

Methodology/approach – We review available multigroup analysis methods in PLS path modeling and introduce a novel confidence set approach. A characterization of each method's strengths and limitations and a comparison of their outcomes by means of an empirical example extend the existing knowledge of multigroup analysis methods. Moreover, we provide an omnibus test of group differences (OTG), which allows testing the differences across more than two groups.

Findings – The empirical comparison results suggest that Keil et al.'s (2000) parametric approach can generally be considered more liberal in terms of rendering a certain difference significant. Conversely, the novel confidence set approach and Henseler's (2007) approach are more conservative.

Originality/value of paper – This study is the first to deliver an in-depth analysis and a comparison of the available procedures with which to statistically assess differences between group-specific parameters in PLS path modeling. Moreover, we offer two important methodological extensions of existing research (i.e., the confidence set approach and OTG). This contribution is particularly valuable for international marketing researchers, as it offers recommendations regarding empirical applications and paves the way for future research studies aimed at comparing the approaches' properties on the basis of simulated data.

Details

Measurement and Research Methods in International Marketing
Type: Book
ISBN: 978-1-78052-095-7

Abstract

Details

Applying Partial Least Squares in Tourism and Hospitality Research
Type: Book
ISBN: 978-1-78756-700-9

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Article

Ellen Roemer

The purpose of this paper is to provide a systematic overview with guidelines how to use partial least squares (PLS) path modeling in longitudinal studies. Practical…

Abstract

Purpose

The purpose of this paper is to provide a systematic overview with guidelines how to use partial least squares (PLS) path modeling in longitudinal studies. Practical examples from a study of the acceptance of battery electric vehicles (BEVs) in corporate fleets are used for demonstration purposes.

Design/methodology/approach

In this study, data at three points in time were collected: before the initial use of a BEV, after three and after six months of extensive usage of BEVs.

Findings

Three different models are identified depending on the research objective and on the data basis. Multigroup analyses are suggested to test the difference between the path coefficients of latent variables at different points in time. Limitations for the use of repeated cross-sectional data have to be observed.

Originality/value

Academics and practitioners will benefit from this paper by receiving an overview of the different PLS path models in longitudinal studies. A decision-tree enables them to make a choice regarding the most appropriate model and suggests a sequence of complementary analyses. So far, there is a lack of a tutorial type paper delivering such guidance.

Details

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

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Article

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…

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

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Article

Christian Nitzl, Jose L. Roldan and Gabriel Cepeda

Indirect or mediated effects constitute a type of relationship between constructs that often occurs in partial least squares (PLS) path modeling. Over the past few years…

Abstract

Purpose

Indirect or mediated effects constitute a type of relationship between constructs that often occurs in partial least squares (PLS) path modeling. Over the past few years, the methods for testing mediation have become more sophisticated. However, many researchers continue to use outdated methods to test mediating effects in PLS, which can lead to erroneous results. One reason for the use of outdated methods or even the lack of their use altogether is that no systematic tutorials on PLS exist that draw on the newest statistical findings. The paper aims to discuss these issues.

Design/methodology/approach

This study illustrates the state-of-the-art use of mediation analysis in the context of PLS-structural equation modeling (SEM).

Findings

This study facilitates the adoption of modern procedures in PLS-SEM by challenging the conventional approach to mediation analysis and providing more accurate alternatives. In addition, the authors propose a decision tree and classification of mediation effects.

Originality/value

The recommended approach offers a wide range of testing options (e.g. multiple mediators) that go beyond simple mediation analysis alternatives, helping researchers discuss their studies in a more accurate way.

Details

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

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Article

Ahmet Usakli and Kemal Gurkan Kucukergin

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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).

Practical implications

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

Originality/value

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).

Details

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

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Article

Anas Abdelsatar Mohammad Salameh, Hartini Ahmad, Faisal Zulhumadi and Faruq Muhammad Abubakar

This study aims to explore the impact of system quality dimensions, namely, ease of use, accessibility, interactivity and website innovativeness on service quality (SQ…

Abstract

Purpose

This study aims to explore the impact of system quality dimensions, namely, ease of use, accessibility, interactivity and website innovativeness on service quality (SQ) and customer satisfaction.

Design/methodology/approach

The study used a quantitative approach, by using a survey method. The unit of analysis was the individual. A total of 618 questionnaires were randomly distributed to university students and staff in Jordan. The partial least square path-modeling method was used in the estimation of causal relationships of the constructs examined in the study.

Findings

The outcomes of this study showed that ease of use, interactivity and website innovativeness have significant positive relationships with the SQ. Consequently, SQ significantly influences customer satisfaction.

Research limitations/implications

Limitations of this research were related to the unit of analysis, as it was conducted within the geographical region of Jordan and the university context, where the culture and level of the technological advancement may be different than other countries.

Practical implications

This research can assist mobile commerce (m-commerce) service policymakers to formulate significant policies that could enhance the nature of services being rendered and thus bring greater benefits to the customers.

Originality/value

This research has extended the body of knowledge on emerging trends in m-commerce innovation adoption, more specifically in the university context. Furthermore, it offers insight on the importance of m-commerce in the minds of customers, in such a way that it will bring about the intention to repeat patronage in the future.

Details

Journal of Systems and Information Technology, vol. 20 no. 1
Type: Research Article
ISSN: 1328-7265

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