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Goodness-of-fit indices for partial least squares path modeling

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  • Jörg Henseler
  • Marko Sarstedt

Abstract

This paper discusses a recent development in partial least squares (PLS) path modeling, namely goodness-of-fit indices. In order to illustrate the behavior of the goodness-of-fit index (GoF) and the relative goodness-of-fit index (GoF rel ), we estimate PLS path models with simulated data, and contrast their values with fit indices commonly used in covariance-based structural equation modeling. The simulation shows that the GoF and the GoF rel are not suitable for model validation. However, the GoF can be useful to assess how well a PLS path model can explain different sets of data. Copyright The Author(s) 2013

Suggested Citation

  • Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
    • Handle: RePEc:spr:compst:v:28:y:2013:i:2:p:565-580
    DOI: 10.1007/s00180-012-0317-1
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    More about this item

    Keywords

    Partial least squares path modeling (PLS); Goodness-of-fit index (GoF); C39;
    All these keywords.

    JEL classification:

    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other

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