Addressing Endogeneity in International Marketing Applications of Partial Least Squares Structural Equation Modeling

Hult, G. Tomas M.; Hair, Joseph F.; Proksch, Dorian; Sarstedt, Marko; Pinkwart, Andreas; Ringle, Christian M.

doi:10.1509/jim.17.0151

Cited by 1,241

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Addressing Endogeneity in International Marketing Applications of Partial Least Squares Structural Equation Modeling

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Hult, G. Tomas M., Hair, Joseph F., Proksch, Dorian, Sarstedt, Marko, Pinkwart, Andreas, Ringle, Christian M.·2018·Journal of International Marketing

DOI 10.1509/jim.17.0151

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Abstract

Partial least squares structural equation modeling (PLS-SEM) has become a key method in international marketing research. Users of PLS-SEM have, however, largely overlooked the issue of endogeneity, which has become an integral component of regression analysis applications. This lack of attention is surprising because the PLS-SEM method is grounded in regression analysis, for which numerous approaches for handling endogeneity have been proposed. To identify and treat endogeneity, and create awareness of how to deal with this issue, this study introduces a systematic procedure that translates control variables, instrumental variables, and Gaussian copulas into a PLS-SEM framework. We illustrate the procedure's efficacy by means of empirical data and offer recommendations to guide international marketing researchers on how to effectively address endogeneity concerns in their PLS-SEM analyses.

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Authors: Hult, G. T. M., Hair, J. F., Proksch, D., Sarstedt, M., Pinkwart, A., & Ringle, C. M.
Venue: Journal of International Marketing
Publisher: SAGE Publications
Published: 2018-09
Volume: 26
Issue: 3
Pages: 1-21
ISSN: 1069-031X (ISSN-L)
1547-7215
DOI: 10.1509/jim.17.0151
OpenAlex: W2804444475
Cited by: 1,241
References: 10
FWCI: 37.78
Type: journal article
Language: en
Open access: green
Licence: journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)

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The paper: Hult, G. T. M., Hair, J. F., Proksch, D., Sarstedt, M., Pinkwart, A., & Ringle, C. M. (2018). Addressing Endogeneity in International Marketing Applications of Partial Least Squares Structural Equation Modeling. Journal of International Marketing. https://doi.org/10.1509/jim.17.0151

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Addressing Endogeneity in International Marketing Applications of Partial Least Squares Structural Equation Modeling

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