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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…

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.

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

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Article
Publication date: 1 February 2003

Nikos Bozionelos

This paper attempts to demystify the technique of causal path modeling for the non‐specialists by presenting aspects of its value for social science and management…

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1237

Abstract

This paper attempts to demystify the technique of causal path modeling for the non‐specialists by presenting aspects of its value for social science and management research and by illustrating common misunderstandings about its attributes. Special emphasis is placed on the real world validity of causal relationships depicted in causal path models and on the information that the data‐fitting properties of causal path models provide regarding this issue. Causal path models that are based on research in antecedents of career success are used to illustrate the points that are made. It is stressed that the validity of causal relationships depicted in causal path models is subject to exactly the same methodological restrictions as the validity of causality claims that are made without the use of causal path modeling; and that the purpose of using quantitative techniques in causal path modeling is not to improve certainty on causality direction.

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Career Development International, vol. 8 no. 1
Type: Research Article
ISSN: 1362-0436

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Article
Publication date: 1 February 2016

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…

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45950

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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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…

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3215

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
Publication date: 17 October 2016

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…

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1794

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.

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

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Article
Publication date: 12 March 2018

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…

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1668

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.

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

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Book part
Publication date: 23 August 2011

Edward E. Rigdon, Christian M. Ringle, Marko Sarstedt and Siegfried P. Gudergan

Purpose – Revisiting Fornell et al.'s (1996) seminal study, this chapter looks at the evidence for observed and unobserved heterogeneity within data underlying the…

Abstract

Purpose – Revisiting Fornell et al.'s (1996) seminal study, this chapter looks at the evidence for observed and unobserved heterogeneity within data underlying the American customer satisfaction index (ACSI) model. Examining data for two specific industries (utilities and hotels) reveals only modest differences. However, we suppose that unobserved heterogeneity critically affects the results. These insights provide the basis for shaping further differentiated ACSI model analyses and more precise interpretations.

Methodology/approach – This study applies the partial least squares (PLS) path modeling method and uses empirical data to estimate and compare the ACSI model results on the aggregate and industry-specific data levels. In addition, the finite mixture PLS path modeling (FIMIX-PLS) method is employed to further examine across industry similarities and within industry differences.

Findings – This research uncovers unobserved heterogeneity that guides forming three segments of customers within each industry. The major segment in each industry represents customers that are fairly loyal (i.e., neither disloyal nor extremely loyal) while the other two smaller segments are not as similar across the two industries. Our study identifies substantial differences across these segments within each industry. An importance-performance map analysis illustrates these differences and provides the basis for managerial implications.

Originality/value of the chapter – The unobserved heterogeneity revealed within industries in a given country (i.e., the United States of America) underlines the need to be open to differences within populations, beyond the observed heterogeneity across distinct groups or cultures, and the need to reconsider reporting requirements in academic research.

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Book part
Publication date: 10 December 2015

Chun Kit Lok

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption…

Abstract

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.

Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.

TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.

The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.

Details

E-services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-709-7

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Article
Publication date: 9 October 2018

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…

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1680

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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Book part
Publication date: 30 December 2004

Ross R. Vickers

Constructing and evaluating behavioral science models is a complex process. Decisions must be made about which variables to include, which variables are related to each…

Abstract

Constructing and evaluating behavioral science models is a complex process. Decisions must be made about which variables to include, which variables are related to each other, the functional forms of the relationships, and so on. The last 10 years have seen a substantial extension of the range of statistical tools available for use in the construction process. The progress in tool development has been accompanied by the publication of handbooks that introduce the methods in general terms (Arminger et al., 1995; Tinsley & Brown, 2000a). Each chapter in these handbooks cites a wide range of books and articles on specific analysis topics.

Details

The Science and Simulation of Human Performance
Type: Book
ISBN: 978-1-84950-296-2

1 – 10 of over 75000