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Organizational Research Methods· 2014Q1

Common Beliefs and Reality About PLS

Jörg Henseler, Theo K. Dijkstra, Marko Sarstedt, Christian M. Ringle et al.

Short summary

This paper argues that criticisms of the Partial Least Squares (PLS) method in structural equation modeling stem from flaws in the critique itself, not the technique. PLS remains a viable and advantageous tool, particularly for exploratory research and composite factor models.

AI-generated from the title and abstract; the full text is not read.

Key points

  • Criticisms of PLS are attributed to issues within the critique, specifically adherence to common factor models, limited simulation designs, and overgeneralized findings.
  • PLS is presented as a viable estimator for composite factor models, offering an alternative when the common factor model does not hold.
  • The paper advocates for the continued use of PLS as an important statistical tool in social science research, including management and organizational studies.
  • The authors aim to debunk 'myths' created by critics and re-establish a constructive discussion on PLS.

AI-generated from the title and abstract; the full text is not read.

Abstract

This article addresses Rönkkö and Evermann’s criticisms of the partial least squares (PLS) approach to structural equation modeling. We contend that the alleged shortcomings of PLS are not due to problems with the technique, but instead to three problems with Rönkkö and Evermann’s study: (a) the adherence to the common factor model, (b) a very limited simulation designs, and (c) overstretched generalizations of their findings. Whereas Rönkkö and Evermann claim to be dispelling myths about PLS, they have in reality created new myths that we, in turn, debunk. By examining their claims, our article contributes to reestablishing a constructive discussion of the PLS method and its properties. We show that PLS does offer advantages for exploratory research and that it is a viable estimator for composite factor models. This can pose an interesting alternative if the common factor model does not hold. Therefore, we can conclude that PLS should continue to be used as an important statistical tool for management and organizational research, as well as other social science disciplines.

The authors' abstract, as published at the source. Organizational Research Methods, 2014 · DOI ↗

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Field: Organizational Behavior and Human Resource Management

Organizational Behavior and Human Resource ManagementBusiness, Management and Accounting