Common Beliefs and Reality About PLS: Comments on Rönkkö and Evermann (2013)
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This article addresses Rönkkö and Evermann’s criticisms of the partial least squares (PLS) approach to structural equation modeling. We contend that the alleged shortcomings of PLS are not due to problems with the technique, but instead to three problems with Rönkkö and Evermann’s study: (a) the adherence to the common factor model, (b) a very limited simulation designs, and (c) overstretched generalizations of their findings. Whereas Rönkkö and Evermann claim to be dispelling myths about PLS, they have in reality created new myths that we, in turn, debunk. By examining their claims, our article contributes to reestablishing a constructive discussion of the PLS method and its properties. We show that PLS does offer advantages for exploratory research and that it is a viable estimator for composite factor models. This can pose an interesting alternative if the common factor model does not hold. Therefore, we can conclude that PLS should continue to be used as an important statistical tool for management and organizational research, as well as other social science disciplines.
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The model fit indices (SRMR = 0.076; NFI = 0.866) indicate that the data fit the model and the model predicts and tests the hypotheses.
“Finally, the goodness of fit was determined using SmartPLS by calculating the standardized root mean square residual (SRMR; 0.076) and the normed fit index (NFI; 0.866). SRMR values below 0.08 mean that the data fit the model (Hu and Bentler, 1999; Henseler et al., 2014), whereas for NFI values (which are between 0 and 1), the closer the value is to 1, the better the fit (Lohm ¨ oller, 1989).”
From Mastering digital transformation: The nexus between leadership, agility, and digital strategy (2022) · cites this paper as Henseler et al., 2014
PLS-SEM does not require data to meet certain distributional assumptions and can work with non-normal data.
“PLS-SEM does not require the data to meet certain distributional assumptions and can work with non-normal data (Henseler et al., 2014);”
From A consumer behavioural approach to food waste (2018) · cites this paper as Henseler et al., 2014
The bootstrap confidence interval for SRMR is [0.043, 0.053], lower than the suggested threshold of 0.08.
“The bootstrap confidence interval for the Squared Root Mean Residual is [0.043, 0.053], lower than the suggested threshold of 0.08 (Henseler et al., 2014).”
From A consumer behavioural approach to food waste (2018) · cites this paper as Henseler et al., 2014
The model fit should be read as adequate rather than strong.
“so the model fit should be read as adequate rather than strong.”
From Seeing Is Believing, Experiencing Is Deciding: How Augmented Reality Attributes Drive Confidence in Choice and Willingness to Pay (2026) · cites this paper as Henseler et al. (2014)
The SRMR value was 0.037, which is lower than the threshold of 0.080.
“The value of the SRMR was 0.037, which is lower than the threshold of 0.080 [138].”
A confirmatory composite analysis helps determine whether it makes sense to create the proposed formative construct and identifies any model misspecifications.
“In other words, a confirmatory composite analysis helps determine whether it makes sense to create the proposed formative construct and identifies any model misspecifications [138,139].”
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Partial least squares structural equation modeling in HRM research
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Self-citationEstimation issues with PLS and CBSEM: Where the bias lies!
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An Introduction to Structural Equation Modeling
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Self-citationPartial Least Squares Structural Equation Modeling
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Bridging Design and Behavioral Research With Variance-Based Structural Equation Modeling
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Beyond a tandem analysis of SEM and PROCESS: Use of PLS-SEM for mediation analyses!
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Executing and interpreting applications of PLS-SEM: updates for family business researchers
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Mastering digital transformation: The nexus between leadership, agility, and digital strategy
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“SRMR values below 0.08 mean that the data fit the model (Hu and Bentler, 1999; Henseler et al., 2014), whereas for NFI values (which are between 0 and 1), the closer the value is to 1, the better the fit (Lohm ¨ oller, 1989).”
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On the emancipation of PLS-SEM: a commentary on Rigdon (2012)
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“PLS-SEM: indeed a silver bullet” – retrospective observations and recent advances
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Self-citationTips to use partial least squares structural equation modelling (PLS-SEM) in knowledge management
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When predictors of outcomes are necessary: guidelines for the combined use of PLS-SEM and NCA
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Self-citationPartial Least Squares Path Modeling
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A critical look at the use of SEM in international business research
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Measuring business model innovation: conceptualization, scale development, and proof of performance
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HTMT2–an improved criterion for assessing discriminant validity in structural equation modeling
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Self-citationEuropean management research using partial least squares structural equation modeling (PLS-SEM)
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Self-citationPartial least squares path modeling: Quo vadis?
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“(4) PLS can be a valuable tool for exploratory research (Henseler et al., 2014).”
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Authenticity and place attachment of major visitor attractions
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Strategic Agility, Business Model Innovation, and Firm Performance: An Empirical Investigation
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Methodological research on partial least squares structural equation modeling (PLS-SEM)
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Internet research using partial least squares structural equation modeling (PLS-SEM)
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This fast car can move faster: a review of PLS-SEM application in higher education research
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Self-citationBreaking barriers in deployment of renewable energy
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Using partial least squares structural equation modeling in hospitality and tourism
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E-health and wellbeing monitoring using smart healthcare devices: An empirical investigation
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Grit in the path to e-learning success
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Partial least squares path modeling: Time for some serious second thoughts
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Statistical Inference with PLSC Using Bootstrap Confidence Intervals1
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Self-citationImpact of Organizational Culture Values on Organizational Agility
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- Authors
- Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., Ketchen, D. J., Hair, J. F., Hult, G. T. M., & Calantone, R. J.
- Affiliations
- Radboud University Nijmegen (NL)
- University of Groningen (NL)
- University of Newcastle Australia (AU)
- University of Vienna (AT)
- University System of Georgia (US)
- Auburn University (US)
- Kennesaw State University (US)
- Michigan State University (US)
- Corresponding author
- Henseler, Jörg
- ORCID
- Venue
- Organizational Research Methods
- Publisher
- SAGE Publications
- Published
- 2014-04
- Volume
- 17
- Issue
- 2
- Pages
- 182-209
- ISSN
- 1094-4281 (ISSN-L)
- 1552-7425
- OpenAlex
- W2100739170
- Cited by
- 3,332
- References
- 111
- Citations by year
- 2026: 327 · 2025: 396 · 2024: 433 · 2023: 458 · 2022: 424 · 2021: 349 · 2020: 261 · 2019: 230 · 2018: 177 · 2017: 116 · 2016: 106 · 2015: 40 · 2014: 14 · 2012: 1
- FWCI
- 115.87
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Locations
- Organizational Research Methods (publishedVersion, cc-by-nc)
- University of Groningen research database (University of Groningen / Centre for Information Technology) (publishedVersion, cc-by-nc)
- University of Twente Research Information (publishedVersion, cc-by)
- DigitalCommons - Kennesaw State University (Kennesaw State University) (submittedVersion)
- Portuguese National Funding Agency for Science, Research and Technology (RCAAP Project by FCT) (submittedVersion, other-oa)
- DigitalCommons - Kennesaw State University (Kennesaw State University) (submittedVersion, cc-by-nc)
- Open access LMU (Ludwid Maxmilian's Universitat Munchen) (submittedVersion, cc-by-nc)
- Radboud Repository (Radboud University) (submittedVersion)
- University of Groningen research database (University of Groningen / Centre for Information Technology) (submittedVersion, cc-by-nc)
- University of Twente Research Information (submittedVersion, cc-by)
- Topics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Psychometric Methodologies and Testing
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Applications
- Physical Sciences › Mathematics › Statistics and Probability › Advanced Statistical Methods and Models
- Keywords
- partial least squares, structural equation modeling, common factor model, simulation study, exploratory research, methodological considerations
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