Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research
Abstract
Purpose: – The authors aim to present partial least squares (PLS) as an evolving approach to structural equation modeling (SEM), highlight its advantages and limitations and provide an overview of recent research on the method across various fields. Design/methodology/approach: – In this review article, the authors merge literatures from the marketing, management, and management information systems fields to present the state-of-the art of PLS-SEM research. Furthermore, the authors meta-analyze recent review studies to shed light on popular reasons for PLS-SEM usage. Findings: – PLS-SEM has experienced increasing dissemination in a variety of fields in recent years with nonnormal data, small sample sizes and the use of formative indicators being the most prominent reasons for its application. Recent methodological research has extended PLS-SEM's methodological toolbox to accommodate more complex model structures or handle data inadequacies such as heterogeneity. Research limitations/implications: – While research on the PLS-SEM method has gained momentum during the last decade, there are ample research opportunities on subjects such as mediation or multigroup analysis, which warrant further attention. Originality/value: – This article provides an introduction to PLS-SEM for researchers that have not yet been exposed to the method. The article is the first to meta-analyze reasons for PLS-SEM usage across the marketing, management, and management information systems fields. The cross-disciplinary review of recent research on the PLS-SEM method also makes this article useful for researchers interested in advanced concepts.
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The Q2 value of purchase intention is 0.525, indicating good prediction accuracy of the research model.
“The Q2 value of purchase intention is 0.525, indicating good prediction accuracy of the research model [151].”
From Consumers purchase intention in live-streaming e-commerce: A consumption value perspective and the role of streamer popularity (2024) · cites this paper as [151]
All VIF values for each construct were significantly lower than 3.3, indicating that multicollinearity was not a concern for this study.
“Finally, all the VIF values (Table 4) for each construct were significantly lower than the minimum value of 3.3, indicating that multicollinearity was not a concern for this study [84].”
From An empirical study on logistic service quality, customer satisfaction, and cross-border repurchase intention (2025) · cites this paper as [84]
PLS-SEM is particularly useful for complex models or small sample sizes and suitable for datasets with multivariate non-normality.
“This is particularly useful when addressing complex models or small sample sizes and suitable for datasets with multivariate non-normality.”
From An empirical study on logistic service quality, customer satisfaction, and cross-border repurchase intention (2025) · cites this paper as [84]
All constructs' composite reliability values met the >0.70 criterion, indicating reliability of the constructs.
“According to Hair, Sarstedt [84], the suggested value of CR is higher than 0.70, and the results reveal that the values of all constructs meet the criterion, indicating the reliability of the constructs.”
From An empirical study on logistic service quality, customer satisfaction, and cross-border repurchase intention (2025) · cites this paper as [84]
Each construct's Cronbach's alpha value was well above the 0.70 threshold, indicating adequate reliability of the constructs.
“The results showed that each construct's alpha value was well above the 0.70 threshold, indicating adequate reliability of the constructs.”
From An empirical study on logistic service quality, customer satisfaction, and cross-border repurchase intention (2025) · cites this paper as [84]
When construct assessments are confirmed and genuinely reliable and valid, the subsequent phase focuses on measuring the structural model results.
“When construct assessments are confirmed and genuinely reliable and valid, the subsequent phase focus on the measuring of the structural model results (Hair et al., 2014).”
From THE ROLE OF INTIMACY, BELONGING, SELF-ESTEEM INTHE ASSOCIATION BETWEEN ANXIOUS, AVOIDANT ATTACHMENT AND FORGIVENESS AMONG MARRIED IRANIAN WOMEN (2021) · cites this paper as Hair et al., 2014
Any positive Q2 value demonstrates that the model provides valuable predictive information.
“According to the standards in the methodological literature [54], any positive Q 2 value demonstrates that the model provides valuable predictive information”
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- Authors
- F. Hair Jr, J., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V.
- Affiliations
- University of Newcastle Australia (AU)
- Middle Georgia State University (US)
- ORCID
- Sarstedt, Marko
- Venue
- European Business Review
- Publisher
- Emerald
- Published
- 2014-03-04
- Volume
- 26
- Issue
- 2
- Pages
- 106-121
- ISSN
- 0955-534X (ISSN-L)
- OpenAlex
- W1591013228
- Cited by
- 11,728
- References
- 9
- Citations by year
- 2026: 1004 · 2025: 1634 · 2024: 1960 · 2023: 1967 · 2022: 1609 · 2021: 1319 · 2020: 903 · 2019: 597 · 2018: 346 · 2017: 209 · 2016: 112 · 2015: 53 · 2014: 11 · 2013: 1
- FWCI
- 162.12
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- European Business Review (publishedVersion)
- DigitalCommons - Kennesaw State University (Kennesaw State University) (submittedVersion)
- NOVA (University of Newcastle Australia) (submittedVersion)
- Topics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Psychometric Methodologies and Testing
- Physical Sciences › Mathematics › Statistics and Probability › Advanced Statistical Methods and Models
- Social Sciences › Decision Sciences › Management Science and Operations Research › Business Strategies and Management Research
- Keywords
- partial least squares structural equation modeling, PLS-SEM, structural equation modeling, formative indicators, non-normal data, small sample size, heterogeneity, mediation analysis, multigroup analysis, market analysis, management research, management information systems
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