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PLS path modeling: A software review

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  • 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
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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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