Introduction to the Partial Least Squares Path Modeling: Basic Concepts and Recent Methodological Enhancements
Hengky Latan, Joseph F. Hair, Richard Noonan, Misty A. Sabol
Abstract
This chapter aims to provide a brief overview of the three primary structural equation modeling approaches, which include partial least squares-path modeling (PLS-PM), covariance-based structural equation modeling (CB-SEM), and generalized structure component analysis (GSCA)Generalized Structured Component Analysis (GSCA). We also provide guidelines regarding the appropriate situation to apply each of the three SEM methods. In addition, we describe recent methodological developments in SEM, particularly the method of PLS-PM, as well as applications of selected essential features of PLS-PM. We identify these topics as essential emerging tools for PLS-PM scholars since increasingly their understanding and application will be required in research utilizing PLS-PM. In the end, we summarize our observations and conclusions regarding the evolving state of PLS-PM.