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Article
Publication date: 14 July 2022

Pratyush N. Sharma, Benjamin D. Liengaard, Joseph F. Hair, Marko Sarstedt and Christian M. Ringle

Researchers often stress the predictive goals of their partial least squares structural equation modeling (PLS-SEM) analyses. However, the method has long lacked a statistical…

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Abstract

Purpose

Researchers often stress the predictive goals of their partial least squares structural equation modeling (PLS-SEM) analyses. However, the method has long lacked a statistical test to compare different models in terms of their predictive accuracy and to establish whether a proposed model offers a significantly better out-of-sample predictive accuracy than a naïve benchmark. This paper aims to address this methodological research gap in predictive model assessment and selection in composite-based modeling.

Design/methodology/approach

Recent research has proposed the cross-validated predictive ability test (CVPAT) to compare theoretically established models. This paper proposes several extensions that broaden the scope of CVPAT and explains the key choices researchers must make when using them. A popular marketing model is used to illustrate the CVPAT extensions’ use and to make recommendations for the interpretation and benchmarking of the results.

Findings

This research asserts that prediction-oriented model assessments and comparisons are essential for theory development and validation. It recommends that researchers routinely consider the application of CVPAT and its extensions when analyzing their theoretical models.

Research limitations/implications

The findings offer several avenues for future research to extend and strengthen prediction-oriented model assessment and comparison in PLS-SEM.

Practical implications

Guidelines are provided for applying CVPAT extensions and reporting the results to help researchers substantiate their models’ predictive capabilities.

Originality/value

This research contributes to strengthening the predictive model validation practice in PLS-SEM, which is essential to derive managerial implications that are typically predictive in nature.

Details

European Journal of Marketing, vol. 57 no. 6
Type: Research Article
ISSN: 0309-0566

Keywords

Available. Open Access. Open Access
Article
Publication date: 28 May 2024

Joe F. Hair, Marko Sarstedt, Christian M. Ringle, Pratyush N. Sharma and Benjamin Dybro Liengaard

This paper aims to discuss recent criticism related to partial least squares structural equation modeling (PLS-SEM).

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Abstract

Purpose

This paper aims to discuss recent criticism related to partial least squares structural equation modeling (PLS-SEM).

Design/methodology/approach

Using a combination of literature reviews, empirical examples, and simulation evidence, this research demonstrates that critical accounts of PLS-SEM paint an overly negative picture of PLS-SEM’s capabilities.

Findings

Criticisms of PLS-SEM often generalize from boundary conditions with little practical relevance to the method’s general performance, and disregard the metrics and analyses (e.g., Type I error assessment) that are important when assessing the method’s efficacy.

Research limitations/implications

We believe the alleged “fallacies” and “untold facts” have already been addressed in prior research and that the discussion should shift toward constructive avenues by exploring future research areas that are relevant to PLS-SEM applications.

Practical implications

All statistical methods, including PLS-SEM, have strengths and weaknesses. Researchers need to consider established guidelines and recent advancements when using the method, especially given the fast pace of developments in the field.

Originality/value

This research addresses criticisms of PLS-SEM and offers researchers, reviewers, and journal editors a more constructive view of its capabilities.

Details

European Journal of Marketing, vol. 58 no. 13
Type: Research Article
ISSN: 0309-0566

Keywords

Available. Open Access. Open Access
Article
Publication date: 8 February 2024

Joseph F. Hair, Pratyush N. Sharma, Marko Sarstedt, Christian M. Ringle and Benjamin D. Liengaard

The purpose of this paper is to assess the appropriateness of equal weights estimation (sumscores) and the application of the composite equivalence index (CEI) vis-à-vis

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Abstract

Purpose

The purpose of this paper is to assess the appropriateness of equal weights estimation (sumscores) and the application of the composite equivalence index (CEI) vis-à-vis differentiated indicator weights produced by partial least squares structural equation modeling (PLS-SEM).

Design/methodology/approach

The authors rely on prior literature as well as empirical illustrations and a simulation study to assess the efficacy of equal weights estimation and the CEI.

Findings

The results show that the CEI lacks discriminatory power, and its use can lead to major differences in structural model estimates, conceals measurement model issues and almost always leads to inferior out-of-sample predictive accuracy compared to differentiated weights produced by PLS-SEM.

Research limitations/implications

In light of its manifold conceptual and empirical limitations, the authors advise against the use of the CEI. Its adoption and the routine use of equal weights estimation could adversely affect the validity of measurement and structural model results and understate structural model predictive accuracy. Although this study shows that the CEI is an unsuitable metric to decide between equal weights and differentiated weights, it does not propose another means for such a comparison.

Practical implications

The results suggest that researchers and practitioners should prefer differentiated indicator weights such as those produced by PLS-SEM over equal weights.

Originality/value

To the best of the authors’ knowledge, this study is the first to provide a comprehensive assessment of the CEI’s usefulness. The results provide guidance for researchers considering using equal indicator weights instead of PLS-SEM-based weighted indicators.

Details

European Journal of Marketing, vol. 58 no. 13
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 22 May 2024

Gabriel Cepeda, José L. Roldán, Misty Sabol, Joe Hair and Alain Yee Loong Chong

Rigorous applications of analytical tools in information systems (IS) research are important for developing new knowledge and innovations in the field. Emerging tools provide…

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Abstract

Purpose

Rigorous applications of analytical tools in information systems (IS) research are important for developing new knowledge and innovations in the field. Emerging tools provide building blocks for future inquiry, practice and innovation. This article summarizes the findings of an analysis of the adoption and reporting of partial least squares structural equation modeling (PLS-SEM) analytical tools by Industrial Management & Data Systems authors in the most recent five-year period.

Design/methodology/approach

Selected emerging advanced PLS-SEM analytical tools that have experienced limited adoption are highlighted to broaden awareness of their value to IS researchers.

Findings

PLS-SEM analytical tools that facilitate understanding increasingly complex theoretical models and deliver improved prediction assessment are now available. IS researchers should explore the opportunities to apply these new tools to more fully describe the contributions of their research.

Research limitations/implications

Findings demonstrate the increasing acceptance of PLS-SEM as a useful alternative research methodology within IS. PLS-SEM is a preferred structural equation modeling (SEM) method in many research settings and will become even more widely applied when IS researchers are aware of and apply the new analytical tools.

Practical implications

Emerging PLS-SEM methodological developments will help IS researchers examine new theoretical concepts and relationships and publish their work. Researchers are encouraged to engage in more complete analyses by applying the applicable emerging tools.

Originality/value

Applications of PLS-SEM for prediction, theory testing and confirmation have increased in recent years. Information system scholars should continue to exercise sound practice by applying these new analytical tools where applicable. Recommended guidelines following Hair et al. (2019; 2022) are included.

Details

Industrial Management & Data Systems, vol. 124 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

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Article
Publication date: 11 October 2024

Reema Nayyar, Pratyush Yadav, Rupashree Baral, Mahima Raina and Lalatendu Kesari Jena

This study aims to explore the emergence of workplace spirituality (WPS) in Indian organisations through a systematic literature review by unwrapping the past, present and future…

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Abstract

Purpose

This study aims to explore the emergence of workplace spirituality (WPS) in Indian organisations through a systematic literature review by unwrapping the past, present and future state of WPS research in the Indian context. The data was covered for 15 years (2008–2023) and spread across 116 studies screened from Scopus, Web of Science and EBSCO.

Design/methodology/approach

Theory-context-characteristics-methods (TCCM) framework analysis and topic modelling (bidirectional encoder representations from transformers [BERT] analysis) techniques were adopted for a systematic exploration of theoretical underpinnings, contextual relevance, characteristic features and methodological rigour within the domain of WPS and analysis of the literature’s emerging trends and thematic patterns, respectively.

Findings

Using the TCCM framework, this study analysed the dominant theories applied in WPS literature within the Indian context, including social exchange theory and self-determination theory. In addition, this review highlights the key industries, variables and methodologies that have been the focus of prior research. Using BERT, this study clustered the textual data and identified three thematic patterns in the literature. By analysing past and current studies, this study identified potential gaps that future research could address, as guided by the TCCM framework.

Originality/value

To the best of the authors’ knowledge, this is one of the initial literature reviews focused on country-level studies adopting two techniques to bring more rigour: TCCM and BERT analysis.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

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Book part
Publication date: 21 July 2011

Jon S.T. Quah

During a press conference at the Imperial Hotel in Delhi on 13 March 2001, the Internet news site, Tehelka.com, showed secret video footage of senior politicians, bureaucrats, and…

Abstract

During a press conference at the Imperial Hotel in Delhi on 13 March 2001, the Internet news site, Tehelka.com, showed secret video footage of senior politicians, bureaucrats, and army officers accepting money in a fake defense deal. Two journalists from Tehelka, Anirudha Bahal and Mathew Samuel, posed as arms dealers from a fictitious arms company called West End International to sell nonexistent handheld thermal cameras to senior officials of the Ministry of Defense (MOD) in India. Bahal and Samuel paid bribes to politicians, civil servants, and army officers to procure government contracts. The journalists used three hidden cameras to videotape the corrupt politicians and officials accepting the bribes, with the most dramatic video clip showing the Bharatiya Janata Party (BJP) President, Bangaru Laxman, accepting a wad of currency notes from them. Laxman later claimed that he was not guilty of wrongdoing for accepting Rs. 100,000 (US$2,170) as a donation for the BJP. Describing the episode as “concocted,” he added that he had given the donation to the BJP's treasurer (BBC News, 2001a).

Details

Curbing Corruption in Asian Countries: An Impossible Dream?
Type: Book
ISBN: 978-0-85724-819-0

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