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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.

Suggested Citation

  • Dirk Temme & Henning Kreis & Lutz Hildebrandt, 2006. "PLS Path Modeling – A Software Review," SFB 649 Discussion Papers SFB649DP2006-084, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    • Handle: RePEc:hum:wpaper:sfb649dp2006-084
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    File URL: http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2006-084.pdf
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    References listed on IDEAS

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    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.
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    Cited by:

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    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.
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    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).
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    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.
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    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

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