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Structural equation modeling (SEM) is a well-established and frequently applied method in various disciplines. New methods in the context of SEM are being introduced in an ongoing manner. Since formal proof of statistical properties is difficult or impossible, new methods are frequently justified using Monte Carlo simulations. For SEM with covariance-based estimators, several tools are available to perform Monte Carlo simulations. Moreover, several guidelines on how to conduct a Monte Carlo simulation for SEM with these tools have been introduced. In contrast, software to estimate structural equation models with variance-based estimators such as partial least squares path modeling (PLS-PM) is limited.

As a remedy, the R package cSEM which allows researchers to estimate structural equation models and to perform Monte Carlo simulations for SEM with variance-based estimators has been introduced. This manuscript provides guidelines on how to conduct a Monte Carlo simulation for SEM with variance-based estimators using the R packages cSEM and cSEM.DGP.

The author introduces and recommends a six-step procedure to be followed in conducting each Monte Carlo simulation.

For each of the steps, common design patterns are given. Moreover, these guidelines are illustrated by an example Monte Carlo simulation with ready-to-use R code showing that PLS-PM needs the constructs to be embedded in a nomological net to yield valuable results.

The purpose of this paper is to integrate the findings of articles appearing in European Journal of Marketing’s special section on covariance-based versus composite-based structural equations modeling (SEM).

This is an editorial which uses literature review to draw conclusions regarding areas of agreement, areas for further research, and changing the discussion around composite-based SEM methods.

There are now four new areas of agreement regarding composite-based SEM. Researchers should adopt a toolbox approach to their methods and know the strengths and weaknesses of the research tools in their toolbox. Partial least squares (PLS) SEM and covariance-based SEM are not substitutes, and it is inappropriate to use the language of confirmatory factor analysis (CFA) in reporting measurement estimates from PLS SEM. Measurement matters and researchers need to devote effort to using reliable and valid multi-item measures in their investigations.

This postscript article outlines recommendations for authors, reviewers and editors regarding the analysis of data and reporting of results using structural equations models.

In their paper titled “A Miracle of Measurement or Accidental Constructivism? How PLS Subverts the Realist Search for Truth,” Cadogan and Lee (2022) cast serious doubt on PLS’s suitability for scientific studies. The purpose of this commentary is to discuss the claims of Cadogan and Lee, correct some inaccuracies, and derive recommendations for researchers using structural equation models.

This paper uses scenario analysis to show which estimators are appropriate for reflective measurement models and composite models, and formulates the statistical model that underlies PLS Mode A. It also contrasts two different perspectives: PLS as an estimator for structural equation models vs. PLS-SEM as an overarching framework with a sui generis logic.

There are different variants of PLS, which include PLS, consistent PLS, PLSe1, PLSe2, proposed ordinal PLS and robust PLS, each of which serves a particular purpose. All of these are appropriate for scientific inquiry if applied properly. It is not PLS that subverts the realist search for truth, but some proponents of a framework called “PLS-SEM.” These proponents redefine the term “reflective measurement,” argue against the assessment of model fit and suggest that researchers could obtain “confirmation” for their model.

Researchers should be more conscious, open and respectful regarding different research paradigms.

Researchers should select a statistical model that adequately represents their theory, not necessarily a common factor model, and formulate their model explicitly. Particularly for instrumentalists, pragmatists and constructivists, the composite model appears promising. Researchers should be concerned about their estimator’s properties, not about whether it is called “PLS.” Further, researchers should critically evaluate their model, not seek confirmation or blindly believe in its value.

This paper critically appraises Cadogan and Lee (2022) and reminds researchers who wish to use structural equation modeling, particularly PLS, for their statistical analysis, of some important scientific principles.

The aim of this paper is to study the effect of strategic and project related potential risks on project delivery in Qatar. Two objectives have been defined. The first is to identify potential risk indicators (manifest variables) and categorize them (constructs/latent variables) based on a literature review, while the second is to examine and rank the relationships between the indicators and constructs by developing a structural equation model.

Twenty-five indicators were identified from the literature review and categorized into five groups. To collect the data, an online questionnaire was distributed in Qatar, and 116 responses were obtained. Structural equation modeling (SEM) was used to examine the model. The model that was developed based on the research hypothesis met goodness-of-fit, reliability and validity requirements.

The results showed that all constructs contributed well to the model and that the project parties (PPs) have the highest contribution with an effect weight of 0.209 followed by economic and legal (EL) conditions with an effect weight of 0.205. Site and safety (SS) conditions were third with an effect weight of 0.200 while environmental, natural and technological (ENT) conditions were fourth with an effect weight of 0.1989. The last ranked construct is political and social (PS) conditions with an effect weight of 0.186. Based on the outcome of the SEM, recommendations were provided to industry professionals in Qatar about mitigating the impact of potential risks on construction project.

To the authors' best knowledge, this is the first study to quantify the effects of strategic and project related risks on a construction project using SEM, considering the risk management indicators of SS, EL, ENT, PS in Qatar. The study's practical implications are to enlarge the project's risk management plan by considering the strategic and project related risks to enhance the project performance for the cost overrun and delay. The study is intended for construction projects in Qatar, but it can easily be adapted to other parts of the world given the local circumstances.

This study aims to examine the role of an overall model fit assessment in the context of partial least squares path modeling (PLS-PM). In doing so, it will explain when it is important to assess the overall model fit and provides ways of assessing the fit of composite models. Moreover, it will resolve major concerns about model fit assessment that have been raised in the literature on PLS-PM.

This paper explains when and how to assess the fit of PLS path models. Furthermore, it discusses the concerns raised in the PLS-PM literature about the overall model fit assessment and provides concise guidelines on assessing the overall fit of composite models.

This study explains that the model fit assessment is as important for composite models as it is for common factor models. To assess the overall fit of composite models, researchers can use a statistical test and several fit indices known through structural equation modeling (SEM) with latent variables.

Researchers who use PLS-PM to assess composite models that aim to understand the mechanism of an underlying population and draw statistical inferences should take the concept of the overall model fit seriously.

To facilitate the overall fit assessment of composite models, this study presents a two-step procedure adopted from the literature on SEM with latent variables.

This paper clarifies that the necessity to assess model fit is not a question of which estimator will be used (PLS-PM, maximum likelihood, etc). but of the purpose of statistical modeling. Whereas, the model fit assessment is paramount in explanatory modeling, it is not imperative in predictive modeling.

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).

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.

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.

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.

The results suggest that researchers and practitioners should prefer differentiated indicator weights such as those produced by PLS-SEM over equal weights.

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.

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.

The purpose of this paper is to discuss the pros and cons of partial least squares approach to structural equation modeling (PLS-SEM). The topics include bias, consistency, maximization of R², reliability and model validation.

The approach in this study is descriptive, and the method consists of logical arguments and analysis that are supported by results in references.

Several optimal properties of the PLS-SEM methodology are clarified. A proposal for transforming PLS-SEM mode A to mode B is highlighted, and the transformed mode possesses the desired properties of both modes A and B. Issues with the application of regression analysis using composite scores are also discussed. The strength of PLS-SEM is also compared against that of covariance-based SEM.

Additional studies on PLS-SEM are needed when the population structure contains cross-loadings and/or correlated errors.

PLS-SEM may have inflated type I errors and R² values even with normally distributed data.

The content of this paper is new, and there does not exist such an in-depth discussion of the pros and cons of PLS-SEM methodology in the literature.

This study aims to show the effectiveness and applicability of artificial intelligence applications in the measurement and evaluation of university services. Universities can gain competitive advantage through providing their students with quality services in various aspects, such as bookstores, dormitories, recreation centers as well as cafeterias. Among these facilities, university cafeterias are places where students spend a significant amount of time. Therefore, this study aims to integrate artificial intelligence application in the evaluation of university cafeteria services based on students' perceptions with two-stage structural equation modeling (SEM) and artificial neural network (ANN) approach.

An artificial intelligence based SEM-ANN hybrid approach was used to determine the factors that have significant influence on student satisfaction, sufficiency-of-services and likelihood-of-recommendation. Data were collected from 373 students through a face-to-face questionnaire. Initially, four service quality dimensions were attained through factor analysis. Then, hypotheses, which were determined via literature review, were tested through SEM-ANN hybrid approach.

Incorporating the results of SEM analysis into the ANN technique resulted in superior models with good prediction performance. Based on four ANN models created and ANN sensitivity analyses conducted, significant predictors of satisfaction, sufficiency, reliability and recommendation are determined and ranked.

Prior studies have assessed service quality using traditional techniques, whereas, this study integrates artificial intelligence in the assessment of higher-educational institutions' services quality. Also, as a distinction from previous studies, this study ranked importance levels of predictor variables through ANN sensitivity analysis.

Corporate social responsibility (CSR) practices frequently result in increased costs for Chinese international contractors (CICs), where profitability is the primary objective; therefore, internal corporate drivers and external pressures play a crucial role in encouraging them to engage in sustainable CSR practices. This study systematically examines the dynamic impact of internal and external stakeholders on the CSR practices of CICs.

This study adopted a structural equation model (SEM) to identify and validate a correlation between stakeholders and CSR practices. Standardized causal coefficients estimated in SEM were used to construct a fuzzy cognitive map (FCM) model to illustrate the effect of stakeholders on CSR practices with linkage direction and weights. Predictive, diagnostic, and hybrid analyses were performed to dynamically model the variation in stakeholders on the evolution of CSR practices.

The empirical results demonstrate that (1) employee participation in CSR has the greatest impact on CSR practices, followed by CSR strategies, partner and customer expectations, and finally government regulations. (2) In the early stage of CSR fulfillment, CSR strategies have the greatest influence on CSR practices; in the later stage of CSR fulfillment, employee participation in CSR has the greatest influence on CSR practices. (3) In the long run, the most effective and economical integrated interventions are those that address employee participation in CSR, partner expectations and customer expectations, and intervention in CSR strategies is needed if the level of CSR practice needs to be improved in the short term.

This study contributes to the research on the influence mechanisms of CSR practices of CICs and systematically analyzes their dynamic influence on CSR practices of CICs from the perspective of stakeholders.