PLS-SEM: Indeed a Silver Bullet
Marketing and Professional Sales
Structural equation modeling (SEM) has become a quasi-standard in marketing and management research when it comes to analyzing the cause-effect relations between latent constructs. For most researchers, SEM is equivalent to carrying out covariance-based SEM (CB-SEM). While marketing researchers have a basic understanding of CB-SEM, most of them are only barely familiar with the other useful approach to SEM-partial least squares SEM (PLS-SEM). The current paper reviews PLS-SEM and its algorithm, and provides an overview of when it can be most appropriately applied, indicating its potential and limitations for future research. The authors conclude that PLS-SEM path modeling, if appropriately applied, is indeed a "silver bullet" for estimating causal models in many theoretical models and empirical data situations.
Journal of Marketing Theory and Practice
Digital Object Identifier (DOI)
Joe F. Hair, Christian M. Ringle, and Marko Sarstedt. "PLS-SEM: Indeed a Silver Bullet." Journal of Marketing Theory and Practice 19.2 (2011): 139-51. Print.