IDEAS home Printed from https://ideas.repec.org/p/zbw/sfb649/sfb649dp2006-084.html
   My bibliography  Save this paper

PLS path modeling: A software review

Author

Listed:
  • Temme, Dirk
  • Kreis, Henning
  • Hildebrandt, Lutz

Abstract

After years of stagnancy, PLS path modeling has recently attracted renewed interest from applied researchers in marketing. At the same time, the availability of software alternatives to Lohmöller's LVPLS package has considerably increased (PLS-Graph, PLS-GUI, SPAD-PLS, SmartPLS). To help the user to make an informed decision, the existing programs are reviewed; their strengths and weaknesses are identified. Furthermore, analyzing simulated data reveals that the signs of weights/factor loadings and path coefficients can vary considerably across the different programs. Thus, applied researchers should treat the interpretation of their results with caution. Compared to programs for analysis of covariance structure models (LISREL approach), PLS path modeling software is on equal footing regarding ease of use, but clearly lags behind in terms of methodological capabilities.

Suggested Citation

  • Temme, Dirk & Kreis, Henning & Hildebrandt, Lutz, 2006. "PLS path modeling: A software review," SFB 649 Discussion Papers 2006-084, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    • Handle: RePEc:zbw:sfb649:sfb649dp2006-084
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/25167/1/522568351.PDF
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    2. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wu, Wei-Wen & Lan, Lawrence W. & Lee, Yu-Ting, 2012. "Exploring the critical pillars and causal relations within the NRI: An innovative approach," European Journal of Operational Research, Elsevier, vol. 218(1), pages 230-238.
    2. Ned Kock, 2015. "PLS-based SEM Algorithms: The Good Neighbor Assumption, Collinearity, and Nonlinearity," Information Management and Business Review, AMH International, vol. 7(2), pages 113-130.
    3. Cheol Hee Son & Jong In Baek & Yong Un Ban, 2018. "Structural Impact Relationships Between Urban Development Intensity Characteristics and Carbon Dioxide Emissions in Korea," Sustainability, MDPI, vol. 10(6), pages 1-18, June.
    4. Reimund C. Serafica & Susan H. Lane & Clementina D. Ceria-Ulep, 2013. "Dietary Acculturation and Predictors of Anthropometric Indicators Among Filipino Americans," SAGE Open, , vol. 3(3), pages 21582440134, July.
    5. Monecke, Armin & Leisch, Friedrich, 2012. "semPLS: Structural Equation Modeling Using Partial Least Squares," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 48(i03).
    6. Shao, Zhen & Pan, Zhengyuan, 2019. "Building Guanxi network in the mobile social platform: A social capital perspective," International Journal of Information Management, Elsevier, vol. 44(C), pages 109-120.
    7. Christian Felix Böttcher & Martin Müller, 2015. "Drivers, Practices and Outcomes of Low‐carbon Operations: Approaches of German Automotive Suppliers to Cutting Carbon Emissions," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 477-498, September.
    8. Laitinen, Erkki K., 2014. "Influence of cost accounting change on performance of manufacturing firms," Advances in accounting, Elsevier, vol. 30(1), pages 230-240.
    9. Erkki Laitinen, 2014. "The association between CEO work, management accounting information, and financial performance: evidence from Finnish top managers," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 25(3), pages 221-257, December.
    10. Vahid Jafari-Sadeghi & Jean-Marie Nkongolo-Bakenda & Léo-Paul Dana & Robert B. Anderson & Paolo Pietro Biancone, 2020. "Home Country Institutional Context and Entrepreneurial Internationalization: The Significance of Human Capital Attributes," Journal of International Entrepreneurship, Springer, vol. 18(2), pages 165-195, June.
    11. Shao, Zhen, 2019. "Interaction effect of strategic leadership behaviors and organizational culture on IS-Business strategic alignment and Enterprise Systems assimilation," International Journal of Information Management, Elsevier, vol. 44(C), pages 96-108.

    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. Claudio Vitari & Elisabetta Raguseo, 2016. "Big data value and financial performance: an empirical investigation [Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data]," Post-Print halshs-01923271, HAL.
    2. Gupta, Prashant & Seetharaman, A. & Raj, John Rudolph, 2013. "The usage and adoption of cloud computing by small and medium businesses," International Journal of Information Management, Elsevier, vol. 33(5), pages 861-874.
    3. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    4. Popa, Simona & Soto-Acosta, Pedro & Perez-Gonzalez, Daniel, 2018. "An investigation of the effect of electronic business on financial performance of Spanish manufacturing SMEs," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 355-362.
    5. Dongming Wu & Liukai Yu & Qianqian Zhang & Yangyang Jiao & Yuhe Wu, 2021. "Materialism, Ecological Consciousness and Purchasing Intention of Electric Vehicles: An Empirical Analysis among Chinese Consumers," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    6. Loureiro, Sandra Maria Correia & Araújo, Cristiano Mineiro Branco de, 2014. "Luxury values and experience as drivers for consumers to recommend and pay more," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 394-400.
    7. Ana Lanero & José-Luis Vázquez & César Sahelices-Pinto, 2020. "Heuristic Thinking and Credibility of Organic Advertising Claims: The Role of Knowledge and Motivations," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    8. 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.
    9. Asif Khan & Chih-Cheng Chen & Kuan-Hua Lu & Ardy Wibowo & Shih-Chih Chen & Athapol Ruangkanjanases, 2021. "Supply Chain Ambidexterity and Green SCM: Moderating Role of Network Capabilities," Sustainability, MDPI, vol. 13(11), pages 1-13, May.
    10. Linder, Christian, 2019. "Customer orientation and operations: The role of manufacturing capabilities in small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 216(C), pages 105-117.
    11. Molinillo, Sebastian & Liébana-Cabanillas, Francisco & Anaya-Sánchez, Rafael & Buhalis, Dimitrios, 2018. "DMO online platforms: Image and intention to visit," Tourism Management, Elsevier, vol. 65(C), pages 116-130.
    12. Zhang, Yixiang & Wang, Zhaohua & Zhou, Guanghui, 2013. "Antecedents of employee electricity saving behavior in organizations: An empirical study based on norm activation model," Energy Policy, Elsevier, vol. 62(C), pages 1120-1127.
    13. 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.
    14. Karjaluoto, Heikki & Jayawardhena, Chanaka & Leppäniemi, Matti & Pihlström, Minna, 2012. "How value and trust influence loyalty in wireless telecommunications industry," Telecommunications Policy, Elsevier, vol. 36(8), pages 636-649.
    15. Sánchez-Infante Hernández, Juan Pablo & Yañez-Araque, Benito & Moreno-García, Juan, 2020. "Moderating effect of firm size on the influence of corporate social responsibility in the economic performance of micro-, small- and medium-sized enterprises," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    16. Heetae Yang & Hwansoo Lee, 2019. "Understanding user behavior of virtual personal assistant devices," Information Systems and e-Business Management, Springer, vol. 17(1), pages 65-87, March.
    17. Mark Simkin & Alexander McLeod, 2010. "Why Do College Students Cheat?," Journal of Business Ethics, Springer, vol. 94(3), pages 441-453, July.
    18. Mareike Bergmann & Christian Brück & Thorsten Knauer & Anja Schwering, 2020. "Digitization of the budgeting process: determinants of the use of business analytics and its effect on satisfaction with the budgeting process," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(1), pages 25-54, April.
    19. Ringle, C.M. & Götz, O & Wetzels, M.G.M. & Wilson, B, 2009. "On the Use of Formative Measurement Specifications in Structural Equation Modelling: A Monte Carlo Simulation Study to Compare Covariance-Based and Partial Least Squares Model Estimation Methodologies," Research Memorandum 014, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    20. Pelser, Jan & de Ruyter, Ko & Wetzels, Martin & Grewal, Dhruv & Cox, David & van Beuningen, Jacqueline, 2015. "B2B Channel Partner Programs: Disentangling Indebtedness from Gratitude," Journal of Retailing, Elsevier, vol. 91(4), pages 660-678.

    More about this item

    Keywords

    PLS path modeling; Marketing; Formative indicators; Reflective indicators;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C87 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Econometric Software
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:zbw:sfb649:sfb649dp2006-084. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/sohubde.html .

    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.