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An Introduction to Structural Equation Modeling

Open access
Hair, Joseph F., Hult, G. Tomas M., Ringle, Christian M., Sarstedt, Marko, Danks, Nicholas P., Ray, Soumya·2021·Classroom Companion: Business

Abstract

Structural equation modeling is a multivariate data analysis method for analyzing complex relationships among constructs and indicators. To estimate structural equation models, researchers generally draw on two methods: covariance-based SEM (CB-SEM) and partial least squares SEM (PLS-SEM). Whereas CB-SEM is primarily used to confirm theories, PLS represents a causal–predictive approach to SEM that emphasizes prediction in estimating models, whose structures are designed to provide causal explanations. PLS-SEM is also useful for confirming measurement models. This chapter offers a concise overview of PLS-SEM’s key characteristics and discusses the main differences compared to CB-SEM. The chapter also describes considerations when using PLS-SEM and highlights situations that favor its use compared to CB-SEM.

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Metadata

Authors
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S.
Venue
Classroom Companion: Business
Published
2021
Pages
1-29
ISSN
  • 2662-2866 (ISSN-L)
  • 2662-2874
OpenAlex
W3209981475
Cited by
1,219
References
18
FWCI
351.92
Type
book chapter
Language
en
Open access
hybrid

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CoChat. (2026). Citation check: An Introduction to Structural Equation Modeling. https://app.cochat.ai/papers/10.1007/978-3-030-80519-7_1
The paper
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). An Introduction to Structural Equation Modeling. Classroom Companion: Business. https://doi.org/10.1007/978-3-030-80519-7_1

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Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.