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Capturing and Treating Unobserved Heterogeneity by Response Based Segmentation in PLS Path Modeling. A Comparison of Alternative Methods by Computational Experiments

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Author Info
Esposito Vinzi, Vincenzo () (ESSEC Business school)
Ringle, Christian M. (University of Hamburg, Faculty of Business, Economics and social Sciences)
Squillacciotti, Silvia () (Electricité de France, Research & Development)
Trinchera, Laura (University of Naples, Federico II, Department of Mathematics and Statistics)
Abstract

Segmentation in PLS path modeling framework results is a critical issue in social sciences. The assumption that data is collected from a single homogeneous population is often unrealistic. Sequential clustering techniques on the manifest variables level are ineffective to account for heterogeneity in path model estimates. Three PLS path model related statistical approaches have been developed as solutions for this problem. The purpose of this paper is to present a study on sets of simulated data with different characteristics that allows a primary assessment of these methodologies.

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Publisher Info
Paper provided by ESSEC Research Center, ESSEC Business School in its series ESSEC Working Papers with number DR 07019.

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Length: 24 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:ebg:essewp:dr-07019

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Related research
Keywords: Partial Least Squares Path Modeling Unobserved Heterogeneity

Find related papers by JEL classification:
C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other

This paper has been announced in the following NEP Reports:

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  1. Karl Jöreskog, 1978. "Structural analysis of covariance and correlation matrices," Psychometrika, Springer, vol. 43(4), pages 443-477, December. [Downloadable!] (restricted)
  2. C. Vale & Vincent Maurelli, 1983. "Simulating multivariate nonnormal distributions," Psychometrika, Springer, vol. 48(3), pages 465-471, September. [Downloadable!] (restricted)
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