PLS path modeling

doi:10.1016/J.CSDA.2004.03.005

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PLS path modeling

Journal Article•DOI•

PLS path modeling

Michel Tenenhaus¹, Vincenzo Esposito Vinzi², Vincenzo Esposito Vinzi¹, Yves-Marie Chatelin, Carlo Lauro² - Show less +1 more•Institutions (2)

HEC Paris¹, University of Naples Federico II²

01 Jan 2005-Computational Statistics & Data Analysis (North-Holland)-Vol. 48, Iss: 1, pp 159-205

TL;DR: PLS path modeling can be used for analyzing multiple tables so as to be related to more classical data analysis methods used in this field and some new improvements are proposed.

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About: This article is published in Computational Statistics & Data Analysis.The article was published on 2005-01-01. It has received 4839 citations till now. The article focuses on the topics: Partial least squares path modeling & Partial least squares regression.

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Journal Article•DOI•

A new criterion for assessing discriminant validity in variance-based structural equation modeling

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Jörg Henseler¹, Christian M. Ringle², Marko Sarstedt³, Marko Sarstedt⁴•Institutions (4)

University of Twente¹, Hamburg University of Technology², Otto-von-Guericke University Magdeburg³, University of Newcastle⁴

01 Jan 2015-Journal of the Academy of Marketing Science

TL;DR: In this paper, the heterotrait-monotrait ratio of correlations is used to assess discriminant validity in variance-based structural equation modeling. But it does not reliably detect the lack of validity in common research situations.

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Abstract: Discriminant validity assessment has become a generally accepted prerequisite for analyzing relationships between latent variables. For variance-based structural equation modeling, such as partial least squares, the Fornell-Larcker criterion and the examination of cross-loadings are the dominant approaches for evaluating discriminant validity. By means of a simulation study, we show that these approaches do not reliably detect the lack of discriminant validity in common research situations. We therefore propose an alternative approach, based on the multitrait-multimethod matrix, to assess discriminant validity: the heterotrait-monotrait ratio of correlations. We demonstrate its superior performance by means of a Monte Carlo simulation study, in which we compare the new approach to the Fornell-Larcker criterion and the assessment of (partial) cross-loadings. Finally, we provide guidelines on how to handle discriminant validity issues in variance-based structural equation modeling.

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12,855 citations

Cites background from "PLS path modeling"

...For example, the marketing studies in Hair et al.'s (2012a) review that engage in some type of discriminant validity assessment use the Fornell-Larcker criterion (72.08%), cross-loadings (7.79%), or both (26.13%)....
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...…validity in prior research Other prominent introductory texts on PLS (e.g., Falk andMiller 1992; Haenlein and Kaplan 2004; Lohmöller 1989; Tenenhaus et al. 2005; Wold 1982) do not offer recommendations for assessing discriminant validity Reference Recommendation Fornell-Larcker criterion…...
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Posted Content•

The Use of Partial Least Squares Path Modeling in International Marketing

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Jörg Henseler¹, Jörg Henseler², Christian M. Ringle³, Rudolf R. Sinkovics⁴•Institutions (4)

Radboud University Nijmegen¹, Universidade Nova de Lisboa², University of Newcastle³, University of Auckland⁴

01 Jan 2009-Social Science Research Network

TL;DR: An evaluation of double-blind reviewed journals through important academic publishing databases 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.

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Abstract: Purpose: This paper discusses partial least squares path modeling (PLS), a powerful structural equation modeling technique for research on international marketing. While a significant body of research provides guidance for the use of covariance-based structural equation modeling (CBSEM) in international marketing, there are no subject-specific guidelines for the use of PLS so far.Methodology/approach: A literature review of the use of PLS in international marketing reveals the increasing application of this methodology.Findings: This paper reveals the strengths and weaknesses of PLS in the context of research on international marketing, and provides guidance for multi-group analysis.Originality/value of paper: The paper assists researchers in making well-grounded decisions regarding the application of PLS in certain research situations and provides specific implications for an appropriate application of the methodology.

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7,536 citations

Cites background from "PLS path modeling"

...Our main aims are to shed light on PLS path modeling as an SEM technique, to reveal the strengths and weaknesses of PLS in general, and to deliver guidelines for its use in international marketing in particular....
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...For example, ‘‘there can be more variables than observations and there may be a small amount of data that are missing completely at random’’ (Tenenhaus et al., 2005, p. 202)....
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...Thus, each manifest variable in a certain measurement model is assumed to be generated as a linear function of its latent variables and the residual e: Xx ¼ Lxxþ x (3)...
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Journal Article•DOI•

When to use and how to report the results of PLS-SEM

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Joseph F. Hair, Jeffrey J. Risher, Marko Sarstedt, Christian M. Ringle

14 Jan 2019-European Business Review

TL;DR: A comprehensive overview of the considerations and metrics required for partial least squares structural equation modeling (PLS-SEM) analysis and result reporting can be found in this paper, where the authors provide an overview of previously and recently proposed metrics as well as rules of thumb for evaluating the research results based on the application of PLSSEM.

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Abstract: The purpose of this paper is to provide a comprehensive, yet concise, overview of the considerations and metrics required for partial least squares structural equation modeling (PLS-SEM) analysis and result reporting. Preliminary considerations are summarized first, including reasons for choosing PLS-SEM, recommended sample size in selected contexts, distributional assumptions, use of secondary data, statistical power and the need for goodness-of-fit testing. Next, the metrics as well as the rules of thumb that should be applied to assess the PLS-SEM results are covered. Besides presenting established PLS-SEM evaluation criteria, the overview includes the following new guidelines: PLSpredict (i.e., a novel approach for assessing a model’s out-of-sample prediction), metrics for model comparisons, and several complementary methods for checking the results’ robustness.,This paper provides an overview of previously and recently proposed metrics as well as rules of thumb for evaluating the research results based on the application of PLS-SEM.,Most of the previously applied metrics for evaluating PLS-SEM results are still relevant. Nevertheless, scholars need to be knowledgeable about recently proposed metrics (e.g. model comparison criteria) and methods (e.g. endogeneity assessment, latent class analysis and PLSpredict), and when and how to apply them to extend their analyses.,Methodological developments associated with PLS-SEM are rapidly emerging. The metrics reported in this paper are useful for current applications, but must always be up to date with the latest developments in the PLS-SEM method.,In light of more recent research and methodological developments in the PLS-SEM domain, guidelines for the method’s use need to be continuously extended and updated. This paper is the most current and comprehensive summary of the PLS-SEM method and the metrics applied to assess its solutions.

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6,220 citations

Book Chapter•DOI•

The use of partial least squares path modeling in international marketing

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Jörg Henseler¹, Christian M. Ringle, Rudolf R. Sinkovics•Institutions (1)

Radboud University Nijmegen¹

06 Mar 2009

TL;DR: In this article, the authors conducted an exhaustive literature review to determine the status quo of PLS path modeling in international marketing research and found that more than 30 academic articles in the domain of international marketing used PLS as a means of statistical analysis.

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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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5,282 citations

Journal Article•DOI•

Using PLS path modeling for assessing hierarchial construct models: guidelines and impirical illustration

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Martin Wetzels¹, Gaby Odekerken-Schröder¹, Claudia van Oppen¹•Institutions (1)

Maastricht University¹

01 Mar 2009-Management Information Systems Quarterly

TL;DR: The authors provide guidelines outlining four key steps to construct a hierarchical construct model using PLS path modeling using a reflective, fourth-order latent variable model of online experiential value in the context of online book and CD retailing.

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Abstract: In this paper, the authors show that PLS path modeling can be used to assess a hierarchical construct model. They provide guidelines outlining four key steps to construct a hierarchical construct model using PLS path modeling. This approach is illustrated empirically using a reflective, fourth-order latent variable model of online experiential value in the context of online book and CD retailing. Moreover, the guidelines for the use of PLS path modeling to estimate parameters in a hierarchical construct model are extended beyond the scope of the empirical illustration. The findings of the empirical illustration are used to discuss the use of covariance-based SEM versus PLS path modeling. The authors conclude with the limitations of their study and suggestions for future research.

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3,396 citations

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References

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The partial least squares approach for structural equation modeling.

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Wynne W. Chin

01 Jan 1998

10,147 citations