BookPDF Available

Abstract

Sage: http://www.sagepub.com/books/Book237345 Book's Homepage: http://www.pls-sem.com
Joseph F. Hair, Jr. Kennesaw State University
G. Tomas M. Hult Michigan State University, East Lansing
Christian Ringle Hamburg University of Technology (TUHH), Germany
Marko Sarstedt Otto-von-Guericke University, Magdeburg
Paperback 04-02-2013 ISBN: 9781452217444 $38.00
A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), by Hair, Hult, Ringle, and Sarstedt,
provides a concise yet very practical guide to understanding and using PLS structural equation modeling (PLS-SEM). PLS-
SEM is evolving as a statistical modeling technique and its use has increased exponentially in recent years within a variety
of disciplines, due to the recognition that PLS-SEM’s distinctive methodological features make it a viable alternative to the
more popular covariance-based SEM approach. This text includes extensive examples on SmartPLS software, and is
accompanied by multiple data sets that are available for download from the accompanying website (www.pls-sem.com).
INDEPENDENT CUSTOMER REVIEWS
The book is well done and good for students who are no experts in statitics - Professor Udo Wagner, Faculty of Business,
Economics and Statistics, University of Vienna
This is great text book, very clear, comprehensive, and can be used both by the new to the field and as a handbook by those
who already know the basic concepts. I have recommended this book to my Master students who are writing their
dissertations and they were very pleased with it. - Mr Carlos Cândido, Faculty of Economics, University of the Algarves
Excellent book covering both material and software previously unavailable in a quality textbook - Dr Mark Matthews, Clg Of
Psych Behavioral Sci, Argosy University - Dallas
TABLE OF CONTENTS
Chapter One: Structural Equation Modeling
Chapter Two: Specifying the Path Model and Collecting Data
Chapter Three: Path Model Estimation
Chapter Four: Assessing PLS-SEM Results Part I: Evaluation of Reflective
Measurement Models
A Primer on Partial Least Squares Structural
Equation Modeling (PLS-SEM)
For more information about this title, please visit sagepub.com
To order, create a SAGE account at sagepub.com/myaccount, or contact Customer Service at (800) 818-7243 or (805) 499-9774.
- Page 1 -
Chapter Five: Assessing PLS-SEM Results Part II: Evaluation of the
Formative Measurement Models
Chapter Six: Assessing PLS-SEM Results Part III: Evaluation of the
Structural Model
Chapter Seven: Advanced Topics in PLS Path Modeling
Chapter Eight: Modeling Heterogeneous Data
FEATURES/NEW TO THIS EDITION
KEY FEATURES:
This title provides simple instructions on how to use the SmartPLS software to obtain solutions, and to prepare manuscripts
using the technique for submission to journals.
Designed to be easily understood even by those with limited statistical and mathematical training, the authors have limited
the use of formulas, equations, Greek symbols, and similar notations.
“Rules of Thumb” in every chapter provide guidelines on best practices in the application and interpretation of PLS-SEM.Chapters are organized around learning outcomes to simplify learning the concepts, and statistical terms. Concepts are
consistently defined in simple words to facilitate an understanding of the method.
The book’s website includes many supplements and datasets to facilitate learning and teaching, and provides support to
professors in the form of Microsoft® PowerPoint slides as well as an Instructor Guide that can be posted to their websites.
A Primer on Partial Least Squares Structural
Equation Modeling (PLS-SEM)
For more information about this title, please visit sagepub.com
To order, create a SAGE account at sagepub.com/myaccount, or contact Customer Service at (800) 818-7243 or (805) 499-9774.
- Page 2 -
... GPower analysis is a widely used statistical tool designed to compute the minimum required sample size for a given study by assessing statistical power, effect size, significance level, and the number of predictors (Faul et al., 2007). This ensures that the sample size is neither too small (which may result in underpowered tests and unreliable results) nor excessively large (which may lead to unnecessary resource expenditure and increased complexity in data management) (Cohen, 1988;Hair et al., 2017). The researcher will use **GPower analysis** to determine the required number of respondents for robust path analysis and hypothesis testing within SEM. ...
... This process will ensure that the instrument reliably measures the intended constructs across different respondents. In addition to reliability testing, factor analysis will be performed to confirm the construct validity of the measurement items, ensuring that they align with the theoretical framework of the study (Hair et al., 2017). ...
... Once data collection is complete, the researcher will employ Partial Least Squares-Structural Equation Modeling (PLS-SEM) using SmartPLS 4, which is widely recognized for its suitability in analyzing complex relationships with latent variables (Wold, 1974;Ringle, Wende, & Becker, 2015). PLS-SEM is particularly advantageous for this study due to its ability to handle small-tomedium sample sizes, assess both formative and reflective constructs, and test mediating and moderating effects within structural models (Hair et al., 2017). ...
Chapter
Full-text available
Social media has revolutionized public discourse, serving as a critical platform for discussions on socio-political issues, particularly those related to race, religion, and royalty (3R) related issues in Malaysia. These topics are deeply embedded in national identity and remain highly sensitive within the country’s multicultural framework. This study seeks to quantify the influence of 3R discourse on social media, examining its effects on racial identity development and microaggressive behaviors among Malaysian youth, specifically within the Klang Valley a diverse and demographically significant region. This research will employ a quantitative approach to investigate how exposure to and engagement with 3R content on social media shape youth perceptions, intergroup relations, and racial identity formation. Furthermore, the study will explore the role of social media in facilitating the spread of microaggressions, which, while often subtle, contribute to reinforcing stereotypes and exacerbating intergroup tensions. Although the research is still in progress, initial insights suggest that engagement with 3R-related content on digital platforms may simultaneously strengthen in group identification while perpetuating discriminatory behaviors that influence the broader racial identity development of Malaysian youth. The findings of this study are expected to have significant implications for policymakers, educators, and digital platform regulators, particularly in the areas of media governance, digital literacy, and the promotion of inclusive, constructive online discourse. By providing empirical evidence on the impact of 3R discourse in the digital sphere, this research aims to contribute to strategies that foster social cohesion and mitigate racial polarization within Malaysia’s diverse society.
... For reflective measurement models, evaluation criteria included internal consistency reliability (Cronbach's alpha and composite reliability), indicator reliability (outer loadings), convergent validity (average variance extracted), and discriminant validity (Fornell-Larcker criterion and heterotrait-monotrait ratio). For formative measurement models, assessment included significance and relevance of outer weights, collinearity among indicators (variance inflation factor), and the theoretical rationale for indicator inclusion (Hair et al., 2017). Additionally, measurement invariance was assessed across key demographic segments using the MICOM procedure to ensure valid group comparisons (Henseler et al., 2016). ...
... The measurement model evaluation began with an assessment of construct reliability and validity for all reflective measures. As shown in Table 1, all first-order reflective constructs demonstrated satisfactory internal consistency reliability, with both Cronbach's alpha and composite reliability exceeding the recommended threshold of 0.70 (Hair et al., 2017). Composite reliability values ranged from 0.831 to 0.942, indicating robust internal consistency without redundancy concerns. ...
... For the formative measurement models (second-order constructs), assessment focused on indicator collinearity, significance of outer weights, and theoretical relevance. Collinearity assessment revealed variance inflation factor (VIF) values ranging from 1.427 to 2.836, well below the threshold of 5, indicating absence of problematic collinearity (Hair et al., 2017). Assessment of outer weights revealed that all first-order components significantly contributed to their respective second-order constructs (p < 0.01). ...
Article
This research investigates the complex interrelationship between financial literacy and consumer decision-making behaviour within Vietnam's rapidly evolving peer-to-peer (P2P) lending ecosystem. Whilst financial technology has transformed access to credit markets globally, the specific dynamics within emerging economies with nascent financial infrastructures remain underexplored. Through a multidimensional conceptual framework integrating financial capability theory, technology acceptance paradigms, and behavioural economics, this study examines how varying dimensions of financial literacy influence decision-making processes on digital lending platforms. Employing a structured survey methodology with 427 Vietnamese P2P platform users, this research applies partial least squares structural equation modelling (PLS-SEM) supplemented by fuzzy-set qualitative comparative analysis (fsQCA) to elucidate complex causal relationships. The findings reveal financial literacy demonstrates significant direct effects on risk perception, trust formation, and platform adoption decisions, with differential impacts across demographic segments. Moreover, financial self-efficacy emerges as a crucial moderating variable, reconfiguring the relationship between financial knowledge and behavioural outcomes. The research contributes to theoretical advancement through an integrated conceptual model whilst providing practical insights for financial technology providers, regulatory authorities, and financial literacy advocates within Vietnam's distinctive socioeconomic context.
... SEM is a multivariate data analysis technique that supports the assessment of multiple causal relations among the constructs of a theoretical model (Henseler, 2021;Hair et al., 2019Hair et al., , 2022. SEM is also an example of a second-generation multivariate data analysis technique because it combines elements from factor analysis and linear regression (Hair et al., 2022). ...
... SEM is a multivariate data analysis technique that supports the assessment of multiple causal relations among the constructs of a theoretical model (Henseler, 2021;Hair et al., 2019Hair et al., , 2022. SEM is also an example of a second-generation multivariate data analysis technique because it combines elements from factor analysis and linear regression (Hair et al., 2022). However, the term SEM represents a family of techniques instead of a specific data analysis technique. ...
... Thus, the model estimators are defined to minimize the prediction error, and not the correlation between the dependent variable and the independent variables. This, however, does not mean that the coefficients will never be good estimates of the correlations, merely that the model's main objective is to maximize the predictive power (Henseler, 2021;Hair et al., 2019Hair et al., , 2022. ...
Article
Full-text available
Despite the increasing usage of Partial Least Squares Structural Equation Modeling (PLS-SEM) by the scientific community, there is a series of misconceptions and incorrect usage of the technique reported in the literature. This study conducted a critical review of PLS-SEM usage on Production Engineering Research in Brazil and provided guidelines for its correct usage. A systematic literature review approach was adopted, focusing on papers published in the main Production Engineering Research outlets in Brazil. In total, 49 papers were carefully analyzed by the authors. The main issues identified while reviewing the selected papers can be categorized into four main groups: conceptual design; model operationalization; data analysis; and presentation of results. The study also suggests that realizing the full potential provided by PLS-SEM depends on a series of proper decisions made at the early stages of the research process. The paper concludes with guidelines for researchers to avoid the most common issues associated with using this technique in Production Engineering research.
... This study used partial least square structural equation modeling (PLS-SEM) as the analysis technique. The first step in the PLS-SEM analysis involves assessing the measurement model to ensure that the reliability and validity of the constructs align with predefined criteria ( Table 1 shows that the constructs' reliability is affirmed, as both the composite reliability and Cronbach's alpha fall within the acceptable range, typically exceeding 0.70 (Hair et al., 2022;Kock, 2020). The convergent validity is validated, supported by all AVE values as they exceed 0.50, indicating acceptable convergent validity. ...
Article
Full-text available
Restaurant tax is a crucial source of funding for local government’s development activities. However, there is still very limited research that analyzes restaurant tax compliance in the context of today’s rapidly growing e-commerce. This paper is relevant because the growth of e-commerce-based restaurants in local governments in Indonesia contrasts with the decrease in tax revenues. This study aims to analyze the determinants of restaurant tax compliance using e-commerce and self-assessment systems as independent variables and technology-based tax monitoring as a moderating variable. The sample consists of 68 payers of restaurant tax in the city of Semarang, Indonesia, who have used e-commerce to transact their business. The testing of the hypotheses was carried out using partial least squares-structural equation modeling (PLS-SEM). The results show that the self-assessment system has a positive significant effect on tax compliance with a path coefficient of 0.31. Technology-based tax monitoring significantly affects tax compliance with a path coefficient of 0.52. Technology-based tax monitoring acts more as the main determinant rather than as a moderating variable. The study stresses the importance of implementing technology-based restaurant tax monitoring for local governments. Local finances, primarily funded by local taxes such as the restaurant tax, are essential for bolstering regional budgets. These funds directly contribute to public services and infrastructure, making restaurant tax compliance vital for local government autonomy and development.
... In PLS-SEM, the research model is tested by evaluating the measurement model in the first stage and then estimating the structural model in the second stage (Hair et al., 2016). In the first stage, internal consistency is evaluated using cronbach's α, rho_α, and CR (composite reliability), while convergent validity is evaluated using AVE (average variance extracted) and factor loadings (Hair et al., 2012). ...
Article
This study explores the attributes of anti-aging and quality of life through health-oriented leisure activities among middle-aged adults in their 50s in South Korea. A conceptual model is developed against the backdrop of constraints on leisure (intra-personal, interpersonal, and structural) and motivational factors such as social networking site posts, showing off, and health and fitness that leads to constraint negotiation, satisfaction, and health-related quality of life (measured by competence, psychological well-being, stability, physical well-being, and activity). Partial Least Squares Structural Equation Modeling was employed to analyze the data (391 respondents). The results reveal that structural constraints positively influence constraint negotiation, whereas intrapersonal and interpersonal constraints do not influence constraint negotiation. Motivational factors such as showing off, health, and fitness positively influence constraint negotiations, whereas social networking site posts do not impact. Finally, constraint negotiation positively influences satisfaction, which in turn positively influences health-related quality of life. The outcome of this study advocates the dominant constraints associated with the health-related quality of life of middle-aged adults. Middle-aged adults focus not only on the satisfaction derived from constraint negotiation that enhances their quality of life, but also on the aesthetic aspects of their physique. This study acts as a benchmark in understanding the core characteristics associated with the quality of life of the middle-aged population in South Korea.
... As mentioned by Hair et al. (2016), multivariate testing is suitable for examining established theory and additional independent variables. Since structures cannot be directly measured, indices are utilized to assess factors, with each index representing the weight of the structure. ...
Article
Integrated pest management employs a holistic and sustainable approach to minimize environmental impacts for effective pest control. However, there is limited empirical evidence regarding the implementation and extent of willingness to adopt integrated pest management methods, particularly in developing countries. To address this research gap, this study utilizes an augmented version of the planned behavior model to examine the determinants influencing environmental protection intention among Iranian farmers in adopting integrated pest management practices. This research was descriptive, causal, and correlational, conducted through a cross-sectional survey method on 357 wheat farmers in West Azarbaijan province. The constructs in the original planned behavior model accounted for 51%, and the extended model accounted for 69% of the variance in farmers' intention to use integrated pest management practices. According to the findings of structural equation modeling, all constructs, except subjective norm, significantly affect farmers' intention to use integrated pest management. The results suggest that place attachment enhances the relationship between farmers' attitude and intention to use integrated pest management. The model created in this study can serve as a guide for future research and interventions aimed at promoting sustainable agricultural practices worldwide. Policymakers can utilize these insights to develop policies that offer incentives for the adoption of integrated pest management techniques.
Article
Full-text available
Sustainable consumption which refers to responsible buying is the need of the time. This paper explores the link between awareness of sustainable buying behaviour, leading to attitude formation and conscious buying. The study uses PLS-SEM to empirically evaluate the relationship between the given variables. The study was undertaken on 608 students to find out the mediating role of attitude formation if the consumer knows the current environmental scenario on his buying behavior in Gen Z. The results clearly show that there is a significant relationship between knowledge, attitude formation and sustainable consumption behavior.
Article
Romantic relationship breakups (RRBs) are one of the most common and stressful life events in emerging adulthood that can lead to the development of post-traumatic stress symptoms (PTSS). However, little is known about the risk factors that increase the risk of PTSS after RRBs. We studied the role of romantic perfectionism (as a personality vulnerability) and event centrality and integration of the event (as two key cognitive processes involved in PTSS) in the PTSS severity after RRBs. 525 university students who had experienced at least one RRB in the past two years completed online questionnaires. Results showed that high levels of romantic perfectionism were associated with higher PTSS severity. This relationship was serially mediated by event centrality and integration of the event. The findings highlight the key role of perfectionistic tendencies about romantic relationships and cognitive processing of the event in understanding PTSS after RRBs.
Article
Full-text available
Penelitian ini bertujuan mengembangkan model integratif baru yang mengkaji pengaruh simultan usability, trust, dan customer satisfaction terhadap loyalitas pengguna aplikasi BSI Mobile di Semarang. Kebaruan penelitian ini terletak pada fokusnya yang spesifik pada aplikasi perbankan syariah, berbeda dengan banyak penelitian. Metode penelitian yang digunakan adalah kuantitatif dengan pendekatan Structural Equation Modeling Partial Least Squares (SEM-PLS). Sampel penelitian berjumlah 100 responden pengguna aktif BSI Mobile yang dipilih secara purposive sampling. Data dikumpulkan menggunakan kuesioner yang terdiri dari indikator-indikator usability, trust, customer satisfaction, dan loyalitas, diukur dengan skala Likert 5 poin. Instrumen kuesioner diadaptasi dari penelitian terdahulu dan diuji validitas serta reliabilitasnya. Hasil analisis menunjukkan bahwa usability dan trust berpengaruh positif signifikan terhadap customer satisfaction dan loyalitas pengguna. Customer satisfaction juga terbukti memediasi hubungan usability dan trust dengan loyalitas secara signifikan. Model ini mampu menjelaskan 56% varians kepuasan pengguna dan 61% varians loyalitas, serta memiliki relevansi prediktif yang baik. Simpulan penelitian ini menegaskan pentingnya peningkatan kemudahan penggunaan, keamanan, dan kepuasan pengguna untuk menjaga loyalitas dalam aplikasi mobile banking syariah. Temuan ini memberikan kontribusi teoritis dan implikasi praktis bagi pengembangan strategi layanan digital berbasis kebutuhan lokal.
Article
Full-text available
This study aims to examine the influence of customer experience, brand image, and perceived value on customer satisfaction through purchase decision as a mediating variable. The research was conducted on students of the Faculty of Social and Political Sciences at Universitas 17 Agustus 1945 Surabaya who use the Netflix application. A quantitative approach was used with a questionnaire distributed to 100 respondents. The data were analyzed using Structural Equation Modeling with the Partial Least Squares (PLS) method. The findings reveal that customer experience, brand image, and perceived value significantly influence purchase decision and customer satisfaction. Moreover, purchase decision is proven to mediate the relationship between the independent variables and customer satisfaction. These results highlight the importance of enhancing user experience, building a strong brand image, and delivering value perception to increase customer satisfaction through more informed purchase decisions. The study contributes to understanding consumer behavior in the digital entertainment industry, particularly among students as a major user segment.
ResearchGate has not been able to resolve any references for this publication.