Comments on the article “Marketing or methodology? Exposing the fallacies of PLS with simple demonstrations” and PLS-SEM in general
ISSN: 0309-0566
Article publication date: 27 March 2023
Issue publication date: 30 May 2023
Abstract
Purpose
The purpose of this paper is to discuss the pros and cons of partial least squares approach to structural equation modeling (PLS-SEM). The topics include bias, consistency, maximization of R2, reliability and model validation.
Design/methodology/approach
The approach in this study is descriptive, and the method consists of logical arguments and analysis that are supported by results in references.
Findings
Several optimal properties of the PLS-SEM methodology are clarified. A proposal for transforming PLS-SEM mode A to mode B is highlighted, and the transformed mode possesses the desired properties of both modes A and B. Issues with the application of regression analysis using composite scores are also discussed. The strength of PLS-SEM is also compared against that of covariance-based SEM.
Research limitations/implications
Additional studies on PLS-SEM are needed when the population structure contains cross-loadings and/or correlated errors.
Practical implications
PLS-SEM may have inflated type I errors and R2 values even with normally distributed data.
Originality/value
The content of this paper is new, and there does not exist such an in-depth discussion of the pros and cons of PLS-SEM methodology in the literature.
Keywords
Acknowledgements
This work was supported partly by a grant from the Department of Education (R305D210023) and partly by a grant (31971029) from the Natural Science Foundation of China. However, the contents of the article do not necessarily represent the policy of the funding agencies and no endorsement by the Federal Government was provided.
Erratum: The publisher of European Journal of Marketing wishes to inform readers that the article “Comments on the article “Marketing or methodology? Exposing the fallacies of PLS with simple demonstrations” and PLS-SEM in general”, by Ke-Hai Yuan (2023), DOI: 10.1108/EJM-07-2021-0472 should have included an acknowledgement that as a comment the article was not subject to double blind peer review. This error was introduced during the production process. The publisher sincerely apologises for this error and for any inconvenience caused.
Citation
Yuan, K.-H. (2023), "Comments on the article “Marketing or methodology? Exposing the fallacies of PLS with simple demonstrations” and PLS-SEM in general", European Journal of Marketing, Vol. 57 No. 6, pp. 1618-1625. https://doi.org/10.1108/EJM-07-2021-0472
Publisher
:Emerald Publishing Limited
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