Going beyond the untold facts in PLS–SEM and moving forward

Purpose: This paper aims to discuss recent criticism related to partial least squares structural equation modeling (PLS-SEM). Design/methodology/approach: Using a combination of literature reviews, empirical examples, and simulation evidence, this research demonstrates that critical accounts of PLS-SEM paint an overly negative picture of PLS-SEM’s capabilities. Findings: Criticisms of PLS-SEM often generalize from boundary conditions with little practical relevance to the method’s general performance, and disregard the metrics and analyses (e.g., Type I error assessment) that are important when assessing the method’s efficacy. Research limitations/implications: We believe the alleged “fallacies” and “untold facts” have already been addressed in prior research and that the discussion should shift toward constructive avenues by exploring future research areas that are relevant to PLS-SEM applications. Practical implications: All statistical methods, including PLS-SEM, have strengths and weaknesses. Researchers need to consider established guidelines and recent advancements when using the method, especially given the fast pace of developments in the field. Originality/value: This research addresses criticisms of PLS-SEM and offers researchers, reviewers, and journal editors a more constructive view of its capabilities.

Subjects

Composite-based modeling

Partial least squares

Path modeling

Structural equation modeling

DDC Class

330: Economics

Publication version

publishedVersion

Lizenz

https://creativecommons.org/licenses/by/4.0/

Name

10-1108_EJM-08-2023-0645.pdf

Type

Main Article

Size

773.38 KB

Format

Adobe PDF

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Going beyond the untold facts in PLS–SEM and moving forward