IDEAS home Printed from https://ideas.repec.org/a/spr/intemj/v17y2021i4d10.1007_s11365-020-00687-6.html
   My bibliography  Save this article

Essential new PLS-SEM analysis methods for your entrepreneurship analytical toolbox

Author

Listed:
  • Scott C. Manley

    (Midwestern State University)

  • Joseph F. Hair

    (University of South Alabama)

  • Ralph I. Williams

    (Middle Tennessee State University)

  • William C. McDowell

    (Foster College of Business, Executive and Academic Director, Turner School of Entrepreneurship and Innovation)

Abstract

Rigorous research across the wide spectrum of entrepreneurship is important for developing knowledge and innovation in the field, which in turn offers building blocks for future inquiry, practice, innovation, and economic growth. For this reason, scholars continually seek new empirical analysis tools to examine constructs and variables included in their research. While many familiar tools remain at the core of the scholar’s tool box, PLS-SEM offers valuable options that have been accentuated by recent developments. This article provides a thorough review of PLS-SEM and its application to current entrepreneurship research, summarizes the emergent confirmatory composite analysis (CCA) processes for applying and interpreting the analysis, explains why PLS-SEM can be especially advantageous for research in this field, and concludes with suggestions for scholars as they plan future research projects. In addition, recent PLS-SEM developments are shared that may effectively apply to entrepreneurship research.

Suggested Citation

  • Scott C. Manley & Joseph F. Hair & Ralph I. Williams & William C. McDowell, 2021. "Essential new PLS-SEM analysis methods for your entrepreneurship analytical toolbox," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1805-1825, December.
    • Handle: RePEc:spr:intemj:v:17:y:2021:i:4:d:10.1007_s11365-020-00687-6
    DOI: 10.1007/s11365-020-00687-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11365-020-00687-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11365-020-00687-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nematollah Shiri & Rachel S. Shinnar & Ali Asghar Mirakzadeh & Kiumars Zarafshani, 2017. "Cultural values and entrepreneurial intentions among agriculture students in Iran," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1157-1179, December.
    2. Colin C. Williams & Alvaro Martinez–Perez & Abbi M. Kedir, 2017. "Informal Entrepreneurship in Developing Economies: The Impacts of Starting up Unregistered on firm Performance," Entrepreneurship Theory and Practice, , vol. 41(5), pages 773-799, September.
    3. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    4. Josette Dijkhuizen & Marjan Gorgievski & Marc Veldhoven & René Schalk, 2016. "Feeling successful as an entrepreneur: a job demands — resources approach," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 555-573, June.
    5. Jahangir Yadollahi Farsi & Arash Rezazadeh & Amer Dehghan Najmabadi, 2013. "Social capital and organizational innovation: The mediating effect of entrepreneurial orientation," Journal of Community Positive Practices, Catalactica NGO, issue 2, pages 22-40.
    6. Lingyu Hu & Jibao Gu & Jianlin Wu & Augustine A. Lado, 2018. "Regulatory focus, environmental turbulence, and entrepreneur improvisation," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 129-148, March.
    7. Vega-Vázquez, Manuela & Cossío-Silva, Francisco-José & Revilla-Camacho, María-Ángeles, 2016. "Entrepreneurial orientation–hotel performance: Has market orientation anything to say?," Journal of Business Research, Elsevier, vol. 69(11), pages 5089-5094.
    8. Ana Criado-Gomis & M. Ángeles Iniesta-Bonillo & Amparo Cervera-Taulet, 2018. "Sustainable entrepreneurial orientation within an intrapreneurial context: effects on business performance," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 295-308, June.
    9. Rodgers, Waymond & Guiral, Andrés, 2011. "Potential model misspecification bias: Formative indicators enhancing theory for accounting researchers," The International Journal of Accounting, Elsevier, vol. 46(1), pages 25-50, March.
    10. Virginia Barba-Sánchez & Carlos Atienza-Sahuquillo, 2017. "Entrepreneurial motivation and self-employment: evidence from expectancy theory," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1097-1115, December.
    11. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    12. Waseem Ul Hameed & Muhammad Farhan Basheer & Jawad Iqbal & Ayesha Anwar & Hafiz Khalil Ahmad, 2018. "Determinants of Firm’s open innovation performance and the role of R & D department: an empirical evidence from Malaysian SME’s," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-20, December.
    13. Veland Ramadani & Hyrije Abazi-Alili & Léo-Paul Dana & Gadaf Rexhepi & Sadudin Ibraimi, 2017. "The impact of knowledge spillovers and innovation on firm-performance: findings from the Balkans countries," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 299-325, March.
    14. Alsen Florian Kapinga & Calkin Suero Montero & Godfrey Issac Mwandosya & Esther Rosinner Mbise, 2018. "Exploring the contribution of business and technology incubators to women entrepreneurs’ business development in Dar es Salaam, Tanzania," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-14, December.
    15. Christian Nitzl & Wynne W. Chin, 2017. "The case of partial least squares (PLS) path modeling in managerial accounting research," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(2), pages 137-156, May.
    16. Sarstedt, Marko & Hair, Joseph F. & Ringle, Christian M. & Thiele, Kai O. & Gudergan, Siegfried P., 2016. "Estimation issues with PLS and CBSEM: Where the bias lies!," Journal of Business Research, Elsevier, vol. 69(10), pages 3998-4010.
    17. Joseph F. Hair & G. Tomas M. Hult & Christian M. Ringle & Marko Sarstedt & Kai Oliver Thiele, 2017. "Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 616-632, September.
    18. Nitzl, Christian, 2016. "The use of partial least squares structural equation modelling (PLS-SEM) in management accounting research: Directions for future theory development," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 19-35.
    19. Sarstedt, Marko & Hair, Joseph F. & Cheah, Jun-Hwa & Becker, Jan-Michael & Ringle, Christian M., 2019. "How to specify, estimate, and validate higher-order constructs in PLS-SEM," Australasian marketing journal, Elsevier, vol. 27(3), pages 197-211.
    20. Yu-Te Liu, 2019. "Exploring the role of original aspiration in effectuation tendency," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 977-1016, September.
    21. Donald Kuratko & Michael Morris & Minet Schindehutte, 2015. "Understanding the dynamics of entrepreneurship through framework approaches," Small Business Economics, Springer, vol. 45(1), pages 1-13, June.
    22. Necmi K. Avkiran & Christian M. Ringle (ed.), 2018. "Partial Least Squares Structural Equation Modeling," International Series in Operations Research and Management Science, Springer, number 978-3-319-71691-6, July-Dece.
    23. Eric Hansen & Erlend Nybakk, 2018. "Response to the global financial crisis: a follow-up study," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-12, December.
    24. Pankaj C. Patel, 2019. "Opportunity related absorptive capacity and entrepreneurial alertness," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 63-73, March.
    25. Unai Arzubiaga & Txomin Iturralde & Amaia Maseda & Josip Kotlar, 2018. "Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 217-244, March.
    26. Shmueli, Galit & Ray, Soumya & Velasquez Estrada, Juan Manuel & Chatla, Suneel Babu, 2016. "The elephant in the room: Predictive performance of PLS models," Journal of Business Research, Elsevier, vol. 69(10), pages 4552-4564.
    27. William C. McDowell & Lucy M. Matthews & Ryan L. Matthews & Joshua R. Aaron & Diane R. Edmondson & Cheryl B. Ward, 2019. "The price of success: balancing the effects of entrepreneurial commitment, work-family conflict and emotional exhaustion on job satisfaction," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1179-1192, December.
    28. Ricarda Bouncken & Boris Plüschke & Robin Pesch & Sascha Kraus, 2016. "Entrepreneurial orientation in vertical alliances: joint product innovation and learning from allies," Review of Managerial Science, Springer, vol. 10(2), pages 381-409, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Scott C. Manley & Joseph F. Hair & Ralph I. Williams & William C. McDowell, 0. "Essential new PLS-SEM analysis methods for your entrepreneurship analytical toolbox," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.
    2. Hair, Joseph F. & Astrachan, Claudia Binz & Moisescu, Ovidiu I. & Radomir, Lăcrămioara & Sarstedt, Marko & Vaithilingam, Santha & Ringle, Christian M., 2021. "Executing and interpreting applications of PLS-SEM: Updates for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    3. Basco, Rodrigo & Hair, Joseph F. & Ringle, Christian M. & Sarstedt, Marko, 2022. "Advancing family business research through modeling nonlinear relationships: Comparing PLS-SEM and multiple regression," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    4. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    5. Enrico Ciavolino & Massimo Aria & Jun-Hwa Cheah & José Luis Roldán, 2022. "A tale of PLS Structural Equation Modelling: Episode I— A Bibliometrix Citation Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1323-1348, December.
    6. Jun-Hwa Cheah & Hiram Ting & T. Ramayah & Mumtaz Ali Memon & Tat-Huei Cham & Enrico Ciavolino, 2019. "A comparison of five reflective–formative estimation approaches: reconsideration and recommendations for tourism research," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1421-1458, May.
    7. Danks, Nicholas P. & Sharma, Pratyush N. & Sarstedt, Marko, 2020. "Model selection uncertainty and multimodel inference in partial least squares structural equation modeling (PLS-SEM)," Journal of Business Research, Elsevier, vol. 113(C), pages 13-24.
    8. Christian Nitzl & Wynne W. Chin, 2017. "The case of partial least squares (PLS) path modeling in managerial accounting research," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(2), pages 137-156, May.
    9. María del Carmen Valls Martínez & Pedro Antonio Martín-Cervantes & Ana María Sánchez Pérez & María del Carmen Martínez Victoria, 2021. "Learning Mathematics of Financial Operations during the COVID-19 Era: An Assessment with Partial Least Squares Structural Equation Modeling," Mathematics, MDPI, vol. 9(17), pages 1-21, September.
    10. Sheza Riaz & Hadi Hassan Khan & Bilal Sarwar & Wahab Ahmed & Noor Muhammad & Sajjida Reza & Sheikh Muhammad Nabeel Ul Haq, 2022. "Influence of Financial Social Agents and Attitude Toward Money on Financial Literacy: The Mediating Role of Financial Self-Efficacy and Moderating Role of Mindfulness," SAGE Open, , vol. 12(3), pages 21582440221, August.
    11. Trujillo-Gallego, Mariana & Sarache, William & Sousa Jabbour, Ana Beatriz Lopes de, 2022. "Digital technologies and green human resource management: Capabilities for GSCM adoption and enhanced performance," International Journal of Production Economics, Elsevier, vol. 249(C).
    12. Halpern, Nigel & Mwesiumo, Deodat & Suau-Sanchez, Pere & Budd, Thomas & Bråthen, Svein, 2021. "Ready for digital transformation? The effect of organisational readiness, innovation, airport size and ownership on digital change at airports," Journal of Air Transport Management, Elsevier, vol. 90(C).
    13. Cheah, Jun-Hwa & Waller, David & Thaichon, Park & Ting, Hiram & Lim, Xin-Jean, 2020. "Price image and the sugrophobia effect on luxury retail purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    14. Joon-ho Kim & Kwang-jin Kim & Bum-tae Park & Hyun-ju Choi, 2022. "The Phenomenon and Development of K-Pop: The Relationship between Success Factors of K-Pop and the National Image, Social Network Service Citizenship Behavior, and Tourist Behavioral Intention," Sustainability, MDPI, vol. 14(6), pages 1-30, March.
    15. Joseph F. Hair & Christian M. Ringle & Siegfried P. Gudergan & Andreas Fischer & Christian Nitzl & Con Menictas, 2019. "Partial least squares structural equation modeling-based discrete choice modeling: an illustration in modeling retailer choice," Business Research, Springer;German Academic Association for Business Research, vol. 12(1), pages 115-142, April.
    16. Nicole F. Richter & Sven Hauff & Christian M. Ringle & Siegfried P. Gudergan, 2022. "The Use of Partial Least Squares Structural Equation Modeling and Complementary Methods in International Management Research," Management International Review, Springer, vol. 62(4), pages 449-470, August.
    17. Hossain, Md Afnan & Akter, Shahriar & Yanamandram, Venkata & Strong, Carolyn, 2024. "Navigating the platform economy: Crafting a customer analytics capability instrument," Journal of Business Research, Elsevier, vol. 170(C).
    18. Roberto Pico-Saltos & David Sabando-Vera & Marcela Yonfa-Medranda & Javier Garzás & Andrés Redchuk, 2022. "Hierarchical Component Model (HCM) of Career Success and the Moderating Effect of Gender, from the Perspective of University Alumni: Multigroup Analysis and Empirical Evidence from Quevedo, Ecuador," Sustainability, MDPI, vol. 15(1), pages 1-25, December.
    19. Farzana Quoquab & Jihad Mohammad, 2020. "Cognitive, Affective and Conative Domains of Sustainable Consumption: Scale Development and Validation Using Confirmatory Composite Analysis," Sustainability, MDPI, vol. 12(18), pages 1-22, September.
    20. Smith, Kenneth J. & Emerson, David J. & Mauldin, Shawn, 2021. "Online cheating at the intersection of the dark triad and fraud diamond," Journal of Accounting Education, Elsevier, vol. 57(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:intemj:v:17:y:2021:i:4:d:10.1007_s11365-020-00687-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.