A Critical Examination of Common Beliefs About Partial Least Squares Path Modeling

Organizational Research Methods

Volumn 16, Issue 3, 2013, Pages 425-448

  Rönkkö, Mikko ^a   Evermann, Joerg ^b  

^a AALTO UNIVERSITY   (Finland)

^b MEMORIAL UNIVERSITY OF NEWFOUNDLAND   (Canada)

Author keywords

partial least squares; statistical and methodological myths and urban legends; structural equation modeling

Indexed keywords

EID: 84878760971     PISSN: 10944281     EISSN: 15527425     Source Type: Journal    
DOI: 10.1177/1094428112474693     Document Type: Article

References (75)

1. Aguirre-Urreta M. I.,Marakas G. M.,Ellis M. E.Measurement of composite reliability in research using partial least squares: Some issues and an alternative approach.DATA BASE for Advances in Information Systems. in press;:.
2. Antonakis J.,Bendahan S.,Jacquart P.,Lalive R.On making causal claims: A review and recommendations.Leadership Quarterly. 2010;21:1086-1120.
3. Ashill N. J.,Jobber D.Measuring state, effect, and response uncertainty: Theoretical construct development and empirical validation.Journal of Management. 2010;36 (5): 1278-1308.
4. Asparouhov T.,Muthén B.Exploratory structural equation modeling.Structural Equation Modeling: A Multidisciplinary Journal. 2009;16 (3): 397-438.
5. Atinc G.,Simmering M. J.,Kroll M. J.Control variable use and reporting in macro and micro management research.Organizational Research Methods. 2011;15 (1): 57-74.
6. Avolio B. J.,Howell J. M.,Sosik J. J.A funny thing happened on the way to the bottom line: Humor as a moderator of leadership style effects.Academy of Management Journal. 1999;42 (2): 219-227.
7. Bass B. M.,Avolio B. J.,Jung D. I.,Berson Y.Predicting unit performance by assessing transformational and transactional leadership.Journal of Applied Psychology. 2003;88 (2): 207-218.
8. Birkinshaw J.,Hood N.,Jonsson S.Building firm-specific advantages in multinational corporations: The role of subsidiary initiative.Strategic Management Journal. 1998;19 (3): 221-242.
9. Birkinshaw J.,Morrison A.,Hulland J.Structural and competitive determinants of a global integration strategy.Strategic Management Journal. 1995;16 (8): 637-655.
10. Bollen K. A.Structural equations with latent variables. New York, NY: John Wiley; 1989:.
11. Bollen K. A.,Kirby J. B.,Curran P. J.,Paxton P. M.,Chen F.Latent variable models under misspecification: Two-stage least squares (2SLS) and maximum likelihood (ML) estimators.Sociological Methods & Research. 2007;36 (1): 48-86.
12. Bollen K. A.,Stine R. A.Bootstrapping goodness-of-fit measures in structural equation models.Sociological Methods & Research. 1992;21 (2): 205-229.
13. Burt R. S.Interpretational confounding of unobserved variables in structural equation models.Sociological Methods & Research. 1976;5 (1): 3-52.
14. Cheung M.-S.,Myers M. B.,Mentzer J. T.The value of relational learning in global buyer-supplier exchanges: A dyadic perspective and test of the pie-sharing premise.Strategic Management Journal. 2011;32 (10): 1061-1082.
15. Chin W. W.Modern methods for business research. Marcoulides G. A., ed. Mahwah, NJ: Lawrence Erlbaum; 1998:295-336.
16. Chin W. W.,Newsted P. R.Structural equation modeling analysis with small samples using partial least squares.Statistical Strategies for Small Sample Research. 1999;2:307-342.
17. Cohen J.,Cohen P.,West S. G.,Aiken L. S.Applied multiple regression/correlation analysis for the behavioral sciences. London, England: Lawrence Erlbaum; 2003:.
18. Cool K.,Dierickx I.,Jemison D.Business strategy, market structure and risk-return relationships: A structural approach.Strategic Management Journal. 1989;10 (6): 507-522.
19. Cording M.,Christmann P.,King D. R.Reducing causal ambiguity in acquisition integration: Intermediate goals as mediators of integration decisions and acquisition performance.Academy of Management Journal. 2008;51 (4): 744-767.
20. Crossland C.,Hambrick D. C.Differences in managerial discretion across countries: How nation-level institutions affect the degree to which CEOs matter.Strategic Management Journal. 2011;32 (8): 797-819.
21. Delios A.,Beamish P. W.Geographic scope, product diversification and the corporate performance of Japanese firms.Strategic Management Journal. 1999;20 (8): 711-727.
22. Dijkstra T. K.Some comments on maximum likelihood and partial least squares methods.Journal of Econometrics. 1983;22 (1-2): 67-90.
23. Duxbury L. E.,Higgins C. A.Gender differences in work-family conflict.Journal of Applied Psychology. 1991;76 (1): 60-73.
24. Echambadi R.,Campbell B.,Agarwal R.Encouraging best practice in quantitative management research: An incomplete list of opportunities.Journal of Management Studies. 2006;43 (8): 1801-1820.
25. Edwards J. R.The fallacy of formative measurement.Organizational Research Methods. 2011;14 (2): 370-388.
26. Evermann J.,Tate M.ICIS 2010 proceedings. 2010:.
27. Fornell C.,Bookstein F. L.Two structural equation models: LISREL and PLS applied to consumer exit-voice theory.Journal of Marketing Research. 1982;19 (4): 440-452.
28. Fornell C.,Larcker D. F.Evaluating structural equation models with unobservable variables and measurement error.Journal of Marketing Research. 1981;18 (1): 39-50.
29. Gefen D.,Rigdon E. E.,Straub D. W.An update and extension to SEM guidelines for administrative and social science research.MIS Quarterly. 2011;35 (2): iii-xiv.
30. Goodhue D. L.,Lewis W.,Thompson R.Comparing PLS to regression and LISREL: A response to Marcoulides, Chin, and Saunders.MIS Quarterly. 2012;36 (3): 703-716.
31. Groth M.,Hennig-Thurau T.,Walsh G.Customer reactions to emotional labor: The roles of employee acting strategies and customer detection accuracy.Academy of Management Journal. 2009;52 (5): 958-974.
32. Gruber M.,Heinemann F.,Brettel M.,Hungeling S.Configurations of resources and capabilities and their performance implications: An exploratory study on technology ventures.Strategic Management Journal. 2010;31 (12): 1337-1356.
33. Hair J. F.,Ringle C. M.,Sarstedt M.PLS-SEM: Indeed a silver bullet.Journal of Marketing Theory & Practice. 2011;19 (2): 139-152.
34. Hair J. F.,Sarstedt M.,Pieper T. M.,Ringle C. M.The use of partial least squares structural equation modeling in strategic management research: A review of past practices and recommendations for future applications.Long Range Planning. 2012;45 (5-6): 320-340.
35. Henseler J.,Chin W. W.A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling.Structural Equation Modeling: A Multidisciplinary Journal. 2010;17 (1): 82-109.
36. Henseler J.,Sarstedt M.Goodness-of-fit indices for partial least squares path modeling.Computational Statistics. 2013;:.
37. Herzog W.,Boomsma A.Small-sample robust estimators of noncentrality-based and incremental model fit.Structural Equation Modeling: A Multidisciplinary Journal. 2009;16 (1): 1-27.
38. Howell J. M.,Avolio B. J.Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated-business-unit performance.Journal of Applied Psychology. 1993;78 (6): 891-902.
39. Howell J. M.,Hall-Merenda K. E.The ties that bind: The impact of leader-member exchange, transformational and transactional leadership, and distance on predicting follower performance.Journal of Applied Psychology. 1999;84 (5): 680-694.
40. Hu L.,Bentler P. M.Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives.Structural Equation Modeling: A Multidisciplinary Journal. 1999;6 (1): 1-55.
41. Hulland J.Use of partial least squares (PLS) in strategic management research: A review of four recent studies.Strategic Management Journal. 1999;20 (2): 195-204.
42. Johansson J. K.,Yip G. S.Exploiting globalization potential: U.S. and Japanese strategies.Strategic Management Journal. 1994;15 (8): 579-601.
43. Jöreskog K. G.,Wold H.Systems under indirect observation: Causality, structure, prediction. Jöreskog K. G.Wold H., ed. Amsterdam, the Netherlands: North-Holland; 1982:263-270.
44. Lai K.,Kelley K.Accuracy in parameter estimation for targeted effects in structural equation modeling: Sample size planning for narrow confidence intervals.Psychological Methods. 2011;16 (2): 127-148.
45. Landis R. S.,Beal D. J.,Tesluk P. E.A comparison of approaches to forming composite measures in structural equation models.Organizational Research Methods. 2000;3 (2): 186-207.
46. Lehmann E.,Casella G.Theory of point estimation. New York, NY: Springer; 1998:.
47. Little T. D.,Cunningham W. A.,Shahar G.,Widaman K. F.To parcel or not to parcel: Exploring the question, weighing the merits.Structural Equation Modeling. 2002;9 (2): 151-173.
48. Lohmöller J. B.Latent variable path modeling with partial least squares. Heidelberg, Germany: Physica-Verlag; 1989:.
49. McDonald R. P.Path analysis with composite variables.Multivariate Behavioral Research. 1996;31 (2): 239-270.
50. Meznar M. B.,Nigh D.Buffer or bridge? Environmental and organizational determinants of public affairs activities in American firms.Academy of Management Journal. 1995;38:975-996.
51. Mulaik S. A.Exploratory statistics and empiricism.Philosophy of Science. 1985;52 (3): 410-430.
52. Nickerson R. S.Null hypothesis significance testing: A review of an old and continuing controversy.Psychological Methods. 2000;5 (2): 241-301.
53. Nunnally J.Psychometric theory. New York, NY: McGraw-Hill; 1978:.
54. Olk P.,Young C.Why members stay in or leave an R&D consortium: Performance and conditions of membership as determinants of continuity.Strategic Management Journal. 1997;18 (11): 855-877.
55. Peng D. X.,Lai F.Using partial least squares in operations management research: A practical guideline and summary of past research.Journal of Operations Management. 2012;30 (6): 467-480.
56. Raykov T.Estimation of composite reliability for congeneric measures.Applied Psychological Measurement. 1997;21 (2): 173-184.
57. Reinartz W. J.,Haenlein M.,Henseler J.An empirical comparison of the efficacy of covariance-based and variance-based SEM.International Journal of Research in Marketing. 2009;26 (4): 332-344.
58. Robins J. A.,Tallman S.,Fladmoe-Lindquist K.Autonomy and dependence of international cooperative ventures: An exploration of the strategic performance of U.S. ventures in Mexico.Strategic Management Journal. 2002;23 (10): 881-901.
59. Rosseel Y.Lavaan: An R package for structural equation modeling.Journal of Statistical Software. 2012;48 (2): 1-36.
60. Sanchez G.,Trinchera L.2012:.
61. Sarkar M. B.,Echambadi R. A. J.,Harrison J. S.Alliance entrepreneurship and firm market performance.Strategic Management Journal. 2001;22 (6/7): 701-711.
62. Shamir B.,Zakay E.,Breinin E.,Popper M.Correlates of charismatic leader behavior in military units: Subordinates' attitudes, unit characteristics, and superiors' appraisals of leader performance.Academy of Management Journal. 1998;41:387-409.
63. Shea C. M.,Howell J. M.Efficacy-performance spirals: An empirical test.Journal of Management. 2000;26 (4): 791-812.
64. Sosik J. J.,Avolio B. J.,Kahai S. S.Effects of leadership style and anonymity on group potency and effectiveness in a group decision support system environment.Journal of Applied Psychology. 1997;82 (1): 89-103.
65. Sosik J. J.,Kahai S. S.,Piovoso M. J.Silver bullet or voodoo statistics? A primer for using the partial least squares data analytic technique in group and organization research.Group & Organization Management. 2009;34 (1): 5-36.
66. Tiwana A.Do bridging ties complement strong ties? An empirical examination of alliance ambidexterity.Strategic Management Journal. 2008;29 (3): 251-272.
67. Tsang E. W. K.Acquiring knowledge by foreign partners from international joint ventures in a transition economy: Learning-by-doing and learning myopia.Strategic Management Journal. 2002;23 (9): 835-854.
68. Vandenberg R. J.Introduction: Statistical and methodological myths and urban legends.Organizational Research Methods. 2006;9 (2): 194-201.
69. Vinzi V. E.,Chin W. W.,Henseler J.,Wang H.Handbook of partial least squares. Vinzi V. E.Chin W. W.Henseler J.Wang H., ed. Berlin, Germany: Springer; 2010:1-22.
70. Wang T.,Bansal P.Social responsibility in new ventures: Profiting from a long-term orientation.Strategic Management Journal. 2012;33:1135-1153.
71. Wold H.Factors influencing the outcome of economic sanctions.Trabajos de Estadistica y de Investigacion Operativa. 1985a;36 (3): 325-338.
72. Wold H.Measuring the unmeasurable. Nijkamp P.Leitner L.Wrigley N., ed. Dordrecht, Germany: Marinus Nijhoff; 1985b:221-252.
73. Wood M.Bootstrapped confidence intervals as an approach to statistical inference.Organizational Research Methods. 2005;8 (4): 454-470.
74. Zimmerman D. W.,Williams R. H.The theory of test validity and correlated errors of measurement.Journal of Mathematical Psychology. 1977;16 (2): 135-152.
75. Zott C.,Amit R.The fit between product market strategy and business model: Implications for firm performance.Strategic Management Journal. 2008;29 (1): 1-26.