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When to use and how to report the results of PLS-SEM Emerald - Tập 31 Số 1 - Trang 2-24 - 2019
PurposeThe 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.Design/methodology/approachThis 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.FindingsMost 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.Research limitations/implicationsMethodological 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.Originality/valueIn 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.
Common Method Bias in PLS-SEM International Journal of e-Collaboration - Tập 11 Số 4 - Trang 1-10 - 2015
The author discusses common method bias in the context of structural equation modeling employing the partial least squares method (PLS-SEM). Two datasets were created through a Monte Carlo simulation to illustrate the discussion: one contaminated by common method bias, and the other not contaminated. A practical approach is presented for the identification of common method bias based on variance inflation factors generated via a full collinearity test. The author's discussion builds on an illustrative model in the field of e-collaboration, with outputs generated by the software WarpPLS. They demonstrate that the full collinearity test is successful in the identification of common method bias with a model that nevertheless passes standard convergent and discriminant validity assessment criteria based on a confirmation factor analysis.
An updated and expanded assessment of PLS-SEM in information systems research Industrial Management and Data Systems - Tập 117 Số 3 - Trang 442-458 - 2017
Purpose
Following the call for awareness of accepted reporting practices by Ringle, Sarstedt, and Straub in 2012, the purpose of this paper is to review and analyze the use of partial least squares structural equation modeling (PLS-SEM) in Industrial Management & Data Systems (IMDS) and extend MIS Quarterly (MISQ) applications to include the period 2012-2014.
Design/methodology/approach
Review of PLS-SEM applications in information systems (IS) studies published in IMDS and MISQ for the period 2010-2014 identifying a total of 57 articles reporting the use of or commenting on PLS-SEM.
Findings
The results indicate an increased maturity of the IS field in using PLS-SEM for model complexity and formative measures and not just small sample sizes and non-normal data.
Research limitations/implications
Findings demonstrate the continued use and acceptance of PLS-SEM as an accepted research method within IS. PLS-SEM is discussed as the preferred SEM method when the research objective is prediction.
Practical implications
This update on PLS-SEM use and recent developments will help authors to better understand and apply the method. Researchers are encouraged to engage in complete reporting procedures.
Originality/value
Applications of PLS-SEM for exploratory research and theory development are increasing. IS scholars should continue to exercise sound practice by reporting reasons for using PLS-SEM and recognizing its wider applicability for research. Recommended reporting guidelines following Ringle et al. (2012) and Gefen et al. (2011) are included. Several important methodological updates are included as well.
Predictive model assessment in PLS-SEM: guidelines for using PLSpredict European Journal of Marketing - Tập 53 Số 11 - Trang 2322-2347 - 2019
PurposePartial least squares (PLS) has been introduced as a “causal-predictive” approach to structural equation modeling (SEM), designed to overcome the apparent dichotomy between explanation and prediction. However, while researchers using PLS-SEM routinely stress the predictive nature of their analyses, model evaluation assessment relies exclusively on metrics designed to assess the path model’s explanatory power. Recent research has proposed PLSpredict, a holdout sample-based procedure that generates case-level predictions on an item or a construct level. This paper offers guidelines for applying PLSpredict and explains the key choices researchers need to make using the procedure.Design/methodology/approachThe authors discuss the need for prediction-oriented model evaluations in PLS-SEM and conceptually explain and further advance the PLSpredict method. In addition, they illustrate the PLSpredict procedure’s use with a tourism marketing model and provide recommendations on how the results should be interpreted. While the focus of the paper is on the PLSpredict procedure, the overarching aim is to encourage the routine prediction-oriented assessment in PLS-SEM analyses.FindingsThe paper advances PLSpredict and offers guidance on how to use this prediction-oriented model evaluation approach. Researchers should routinely consider the assessment of the predictive power of their PLS path models. PLSpredict is a useful and straightforward approach to evaluate the out-of-sample predictive capabilities of PLS path models that researchers can apply in their studies.Research limitations/implicationsFuture research should seek to extend PLSpredict’s capabilities, for example, by developing more benchmarks for comparing PLS-SEM results and empirically contrasting the earliest antecedent and the direct antecedent approaches to predictive power assessment.Practical implicationsThis paper offers clear guidelines for using PLSpredict, which researchers and practitioners should routinely apply as part of their PLS-SEM analyses.Originality/valueThis research substantiates the use of PLSpredict. It provides marketing researchers and practitioners with the knowledge they need to properly assess, report and interpret PLS-SEM results. Thereby, this research contributes to safeguarding the rigor of marketing studies using PLS-SEM.
Minimum sample size estimation in PLS‐SEM: The inverse square root and gamma‐exponential methods Information Systems Journal - Tập 28 Số 1 - Trang 227-261 - 2018
AbstractPartial least squares‐based structural equation modelling (PLS‐SEM) is extensively used in the field of information systems, as well as in many other fields where multivariate statistical methods are used. One of the most fundamental issues in PLS‐SEM is that of minimum sample size estimation. The ‘10‐times rule’ has been a favourite because of its simplicity of application, even though it tends to yield imprecise estimates. We propose two related methods, based on mathematical equations, as alternatives for minimum sample size estimation in PLS‐SEM: the inverse square root method, and the gamma‐exponential method. Based on three Monte Carlo experiments, we demonstrate that both methods are fairly accurate. The inverse square root method is particularly attractive in terms of its simplicity of application. © 2016 John Wiley & Sons Ltd