Title

Common Beliefs and Reality about Partial Least Squares: Comments on Rönkkö and Evermann

Department

Marketing & Professional Sales

Document Type

Article

Publication Date

12-31-2014

Abstract

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.

Journal

Organizational Research Methods

Journal ISSN

1094-4281

Volume

17

Issue

2

First Page

182

Last Page

209

Digital Object Identifier (DOI)

10.1177/1094428114526928

Comments

This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 3.0 License (http://www.creativecommons.org/licenses/by-nc/3.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. It can be found indefinitely at http://dx.doi.org/10.1177/1094428114526928.

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