Christian M. Ringle

Hamburg University of Technology | TUHH · School of Management Sciences and Technology

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 accura...

This research offers a novel approach that extends the application of importance-performance map analysis (IPMA) in partial least squares structural equation modeling (PLS-SEM) by incorporating findings from a necessary condition analysis (NCA). The IPMA comprises assessing latent variables and their indicators' importance and performance, while an...

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...

Scientific research demands robust findings, yet variability in results persists due to researchers' decisions in data analysis. Despite strict adherence to state-of the-art methodological norms, research results can vary when analyzing the same data. This article aims to explore this variability by examining the impact of researchers' analytical d...

The ongoing scientific discourse surrounding the replication crisis in behavioral research, including management information systems (MIS) research, underscores the importance of innovative and rigorous approaches to theory development and validation. This article proposes the EP-mixed framework, which addresses the necessity of an ontological dist...

The objective of this special issue on Advanced PLS-SEM Applications in Business Research is to introduce these advances to a wider audience. It demonstrates the application of these methods in generating new insights on existing or refined models and theories. Additionally, it outlines novel methodological advances of the PLS-SEM method.

Endogeneity in regression models is a key marketing research concern. The Gaussian copula approach offers an instrumental variable (IV)-free technique to mitigate endogeneity bias in regression models. Previous research revealed substantial finite sample bias when applying this method to regression models with an intercept. This is particularly pro...

Recent research on partial least squares structural equation modeling (PLS–SEM) extended the classic importance–performance map analysis (IPMA) by taking the results of a necessary condition analysis (NCA) into consideration. By also highlighting necessary conditions, the combined importance–performance map analysis (cIPMA) offers a tool that enabl...

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 c...

We are confident that the articles in this special issue will stimulate further interest and useful applications of PLS-SEM in quality management studies. In particular, this special issue should encourage quality management researchers to adopt the recent methodological extensions of PLS-SEM, which can be of great interest to this field of study....

As companies in the manufacturing and construction industries strive to meet the EU circular economy (CE) targets, they need to develop new capabilities to implement CE activities that can positively influence their product/service innovations. However, companies in both industries, and beyond, still struggle to develop internal capabilities to inn...

In line with calls to stimulate methodological diversity and support evidence‐based human resource development (HRD) through quantitative competencies, we present a methods demonstration leveraging open‐source tools and lesser‐known quantitative research methods to support the HRD research community and applied HRD in the workplace. In this paper,...

La forma más efectiva de aprender a utilizar una técnica estadística de análisis de datos es aplicarla sobre un conjunto de datos. A lo largo de este libro, usa-mos un único ejemplo que le permitirá hacer esto. Comenzamos con un modelo simple, y en el Capítulo 5, ampliaremos este mismo modelo a uno más amplio y complejo. En nuestro modelo inicial,...

A lo largo del libro, vamos a utilizar una única base de datos y el software SmartPLS 4 (Ringle, Wende y Becker, 2022) para ilustrar y explicar PLS-SEM. La base de datos representativa proviene de una investigación sobre la interacción entre la reputación corporativa, la satisfacción del consumidor y en última instancia, la lealtad del consumidor,...

Para explicar la estimación de los efectos de mediación, vamos a emplear de nuevo el modelo de reputación corporativa ampliado en el software SmartPLS.

Continuamos trabajando con nuestro ejemplo del modelo PLS-SEM sobre reputación corporativa. En el Capítulo 3, se explicaba cómo estimar el modelo PLS y cómo obtener los resultados al abrir el informe predeterminado en el software SmartPLS 4 (Ringle, Wende y Becker, 2022). Insistimos que para hacer esto, se debe en primer lugar cargar el modelo simp...

El nomograma simple presentado en el Capítulo 2 describe las relaciones entre las dos dimensiones de la reputación corporativa (i.e., competencia y simpatía), así como las dos variables de resultado (i.e., la satisfacción y lealtad del cliente). Si bien el modelo simple es útil para explicar cómo la reputación corporativa afecta a la satisfacción d...

Continuamos con el modelo ampliado de reputación corporativa que se presentó en el Capítulo 5. Si no tiene un nomograma PLS disponible en SmartPLS, descargue el archivo Corporate Reputation.zip desde el sitio web de https://www. pls-sem.net y guárdelo en el disco duro.

Corporate reputation is important for all types of banks across the world, despite these countries differing culturally. Building on an extended corporate reputation model, we identify the key drivers of customer-based reputation and sustainable customer satisfaction in two culturally different countries, namely China and Germany. We also consider...

The second edition of Advanced Issues in Partial Least Squares Structural Equation Modeling offers a straightforward and practical guide to PLS-SEM for users ready to go further than the basics of A Primer on Partial Least Squares Structural Equation Modeling, Third Edition. Even in this advanced guide, the authors have limited the emphasis on equa...

This chapter aims to explain and predict the sustainable consumption behavior among Europeans. We build on the study by Saari et al. (2021) and use the partial least squares structural equation modeling (PLS-SEM) approach to construct an alternative model. Thereby, we rely on the ISSP Environment III dataset and select nine European countries (N =...

In this Chapter 7, we employ the corporate reputation example to introduce mediation, moderation, and moderated mediation by using the SmartPLS software (Ringle, Wende, & Becker, 2022; https://www.smartpls.com). SmartPLS provides all relevant results for the evaluation of the structural model. Most importantly, you do not need to run Haye’s PROCESS...

In this Chapter 6, by extending the example on corporate reputation to include additional constructs, you can learn to systematically apply the structural model assessment criteria. The SmartPLS software (Ringle, Wende, & Becker, 2022; https://www.smartpls.com) provides all relevant results for the evaluation of the structural model. The tables and...

This editorial paper emphasizes prediction topics within the Logistic and Supply Chain Management (LSCM) business field. We observed that the accepted articles begin by positioning their objective of research based on causal prediction and subsequently use the PLSpredict technique to generalize their findings. Kaplan (1964, p. 350) notes that “[i]f...

In this Chapter 5, expanding the corporate reputation model example by four formatively measured constructs allows us to continue the SmartPLS application of the previous chapters. The SmartPLS software (Ringle, Wende, & Becker, 2022; https://www.smartpls.com) generates results for the evaluation of the formative measurement models. Besides the out...

Having learned how to create and estimate a PLS path model, we now focus on understanding how to assess the quality of the results. In this Chapter 4, we focus on the evaluation of reflective measurement models. The PLS path model of corporate reputation is a practical application enabling you to review the relevant measurement model evaluation cri...

In this Chapter 3, we focus on the PLS-SEM algorithm. The corporate reputation example and the empirical data available with this book enable you to apply the PLS-SEM algorithm using the SmartPLS 4 software (Ringle, Wende, & Becker, 2022; https://www.smartpls.com). Selected menu options guide the user in choosing the algorithmic options and paramet...

The most effective way to learn how to use a statistical method is to apply it to a set of data. Throughout this book, we use a single example that enables you to do that. We start the example with a simple model, and in Chapter 5, we expand that same model to a much broader, more complex model. For our initial model, we hypothesize a path model to...

Purpose The purpose of this study is to investigate how working from home (WFH) affects the relationship between internal corporate social responsibility (ICSR) and employee creativity in times of uncertainty when employees’ occupational stress increases and their identification with their company decreases. Design/methodology/approach Applying so...

This study aims to contribute to the existing literature on higher education marketing by proposing and empirically testing a theoretical model linking higher education quality, student satisfaction, and subjective well-being. The bottom-up spill over theory, the stimulus-organism-response theory, and the expectancy-disconfirmation theory, inform t...

OPEN ACCESS (https://www.sciencedirect.com/science/article/pii/S0019850123000445). A review of studies published in Industrial Marketing Management over the past two decades and more shows that these studies not only used partial least squares structural equation modeling (PLS-SEM) widely to estimate and empirically substantiate theoretically estab...

Purpose The purpose of this paper is to present integrated generalized structured component analysis (IGSCA) as a versatile approach for estimating models that contain both components and factors as statistical proxies for the constructs. The paper sets out to discuss the how-tos of using IGSCA by explaining how to specify, estimate, and evaluate d...

Model comparisons are an essential research tool for documenting the evolution of theoretical models and assessing whether the understanding of a phenomenon has improved (Sharma et al., 2019). Comparing alternative models places theories under sharp scrutiny and enables comparative testing to confirm or falsify theories (Gray & Cooper, 2009; Popper...

For many years, estimating models with complex inter-relationships between observed and their latent variables was equivalent to executing factor-based structural equation modeling (SEM). Recent research, however, saw the rise of partial least squares (PLS) as a composite-based alternative to the standard SEM method (Jöreskog & Wold, 1982). PLS-SEM...

OPEN ACCESS: https://www.sciencedirect.com/science/article/pii/S235234092300197X Corporate reputation is crucial for maintaining and enhancing a company's competitiveness in the marketplace. To actively manage this important intangible asset, which significantly contributes to a company's value, managers need to understand the relationship between...

OPEN ACCESS: https://www.sciencedirect.com/science/article/pii/S2352340923001920 This perspective article on using partial least squares structural equation modelling (PLS-SEM) is intended as a guide for authors who wish to publish datasets that can be analysed with this method as stand-alone data articles. Stand-alone data articles are different...

This chapter illustrates the application of necessary condition analysis (NCA) in the context of partial least squares structural equation modeling (PLS-SEM). We demonstrate the joint use of the two methods using the standard software application SmartPLS 4, which incorporates PLS-SEM and the core NCA computation capabilities, and we offer backgr...

Purpose. Partial least squares structural equation modeling (PLS-SEM) has become an established social sciences multivariate analysis technique. With quality management researchers also increasingly using PLS-SEM, this growing interest calls for guidance. Design/methodology/approach. Based on established guidelines for applying PLS-SEM and evaluat...

Cette troisième édition de Modèles d’équations structurelles Partial Least Squares (PLS-SEM) (1re édition française) guide les lecteurs dans l'apprentissage et la maîtrise des techniques de cette approche. Les auteurs s'appuient sur leurs années de recherche et d'enseignement pour communiquer les principes fondamentaux de la méthode PLS-SEM dans un...

Structural equation modeling (SEM) has remained two mutually exclusive domains, factor-based vs. component-based, depending on whether a construct is modeled by either a factor or a compo-nent (i.e., weighted composite of indicators). Research in international management (IM) and inter-national business (IB), however, needs to accommodate a more ge...

Purpose Partial least squares structural equation modeling (PLS-SEM) has attracted much attention from both methodological and applied researchers in various disciplines – also in hospitality management research. As PLS-SEM is relatively new compared to other multivariate analysis techniques, there are still numerous open questions and uncertaintie...

Research in international business and management (IM) is highly complex, contextual, and spans various subfields and related theoretical lenses. These characteristics pose research challenges that require utilizing sophisticated research designs and methodologies. This paper and our focused issue on ‘The use of partial least squares structural equ...

In 2021, the third edition of our introductory book A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) was published (Hair, Hult, Ringle, & Sarstedt, 2022). The book covers the latest developments in the ield, including recent advances in model evaluation (e.g., inference testing in discriminant validity assessment, predictive...

As companies in the manufacturing sector are starting to incorporate circular economy targets in their strategies, they need to understand what capabilities and circular engineering solutions they should develop and implement, including their likely impact on the company performance. Based on survey data from manufacturing companies operating in Ge...

Partial least squares structural equation modeling (PLS-SEM) is an essential element of marketing researchers’ methodological toolbox. During the last decade, the PLS-SEM field has undergone massive developments, and raising the question of whether the method’s users are following the most recent best practice guidelines. This paper extends Hair et...

Generalized structured component analysis (GSCA) is used for specifying and testing the relationships between observed variables and components. GSCA can perform model selection by comparing theoretically established models. In practice, however, theories may not always completely and unambigu-ously specify the relationships between variables in th...

In 2011, the Journal of Marketing Theory & Practice published “PLS-SEM: Indeed a silver bullet,” which became a cornerstone contribution in marketing. Critical reflection of research work is a fundamental building block of science, including one’s own writing. In this spirit, we offer a review of our own 2011 paper, assuming we were reviewers with...

[Concluding observations] As evident from this brief overview of recent methodological developments in PLS-SEM and the application articles in this special issue, measuring and assessing issues in sports management is a thriving and ongoing effort among scholars in this discipline. At the same time, we cannot forget that the field of sports managem...

Building on the corporate reputation model, this study investigates the drivers of customer-based corporate reputation. We consider two corporate reputation dimensions (i.e., the cognitive dimension competence and the affective dimension likeability, and their effects on customer satisfaction and loyalty). Adapting the model to the banking sector,...

Generalized structured component analysis (GSCA) and partial least squares path modeling (PLSPM) are two key component-based approaches to structural equation modeling that facilitate the analysis of theoretically established models in terms of both explanation and prediction. This study is the first to offer a comparative evaluation of GSCA and PL...

Evermann and Rönkkö (2021) review recent developments in partial least squares (PLS) with the aim of providing guidance to researchers. Indeed, the explosion of methodological advances in PLS in the last decade necessitates such overview articles. In so far as the goal is to provide an objective assessment of the technique, such articles are most w...

With the increasing prominence of partial least squares structural equation modeling (PLS-SEM) in business research, the use of latent class analyses for identifying and treating unobserved heterogeneity has also gained momentum. Researchers have introduced various latent class approaches in a PLS-SEM context, of which finite mixture PLS (FIMIX-PLS...

Partial least squares structural equation modeling (PLS-SEM) has become a standard approach for analyzing complex inter-relationships between observed and latent variables. Researchers appreciate the many advantages of PLS-SEM such as the possibility to estimate very complex models and the method’s flexibility in terms of data requirements and meas...

https://link.springer.com/article/10.1007/s11747-021-00805-y Marketing researchers are increasingly taking advantage of the instrumental variable (IV)-free Gaussian copula approach. They use this method to identify and correct endogeneity when estimating regression models with non-experimental data. The Gaussian copula approach’s original presenta...

Structural equation modeling (SEM) has become a quasi-standard tool for analyzing complex interrelationships between observed variables and theoretical constructs.

Computational statistics is now an increasingly popular method of analysis for researchers that combines a vast array of algorithms, statistical methods, and the power of functional coding. The R programming language, in particular, has benefitted from this development alongside of traditional graphical user interface (GUI) software. Today, it has...

Mediation occurs when a third variable, referred to as a mediator construct, intervenes between two other directly related constructs. More precisely, a change in the exogenous construct results in a change of the mediator construct, which in turn changes the endogenous construct. The mediator analysis evaluates the factors related to the cause–eff...

Structural equation modeling is a multivariate data analysis method for analyzing complex relationships among constructs and indicators. To estimate structural equation models, researchers generally draw on two methods: covariance-based SEM (CB-SEM) and partial least squares SEM (PLS-SEM). Whereas CB-SEM is primarily used to confirm theories, PLS r...

When moderation is present, the strength and even the direction of a relationship between two constructs depend on a third construct (i.e., the moderator). In other words, the strength of the relationship between two constructs changes as the levels of the moderator construct change. As an example, the relationship between customer satisfaction and...

The goal of reflective measurement model assessment is to ensure the reliability and validity of the construct measures and therefore provides support for the suitability of their inclusion in the path model. This chapter introduces the key criteria that are relevant in reflective measurement model assessment: indicator reliability, internal consis...