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PLS Path Modeling – A Software Review

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  • Dirk Temme
  • Henning Kreis
  • Lutz Hildebrandt

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.

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Bibliographic Info

Paper provided by Sonderforschungsbereich 649, Humboldt University, Berlin, Germany in its series SFB 649 Discussion Papers with number SFB649DP2006-084.

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Length: 27 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:hum:wpaper:sfb649dp2006-084

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Related research

Keywords: PLS Path Modeling; Marketing; Formative Indicators; Reflective Indicators;

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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, Elsevier, vol. 218(1), pages 230-238.

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