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PLS-SEM: Indeed a silver bullet

Publikationstyp
Journal Article
Date Issued
2011-04-01
Sprache
English
Author(s)
Hair, Joseph F.  
Ringle, Christian M.  orcid-logo
Sarstedt, Marko  
Institut
Personalwirtschaft und Arbeitsorganisation W-9  
TORE-URI
http://hdl.handle.net/11420/4049
Journal
Journal of marketing theory and practice  
Volume
19
Issue
2
Start Page
139
End Page
151
Citation
Journal of Marketing Theory and Practice 19 (2): 139-151 (2011-04-01)
Publisher DOI
10.2753/MTP1069-6679190202
Scopus ID
2-s2.0-79952790874
Structural equation modeling (SEM) has become a quasi-standard in marketing and management research when it comes to analyzing the cause-effect relations between latent constructs. For most researchers, SEM is equivalent to carrying out covariance-based SEM (CB-SEM). While marketing researchers have a basic understanding of CB-SEM, most of them are only barely familiar with the other useful approach to SEM-partial least squares SEM (PLS-SEM). The current paper reviews PLS-SEM and its algorithm, and provides an overview of when it can be most appropriately applied, indicating its potential and limitations for future research. The authors conclude that PLS-SEM path modeling, if appropriately applied, is indeed a "silver bullet" for estimating causal models in many theoretical models and empirical data situations.
DDC Class
000: Allgemeines, Wissenschaft
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