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The Partial Least Squares Approach to Structural Equation Modeling

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Provides a nontechnical introduction to the partial least squares (PLS) approach. As a logical base for comparison, the PLS approach for structural path estimation is contrasted to the covariance-based approach. In so doing, a set of considerations are then provided with the goal of helping the reader understand the conditions under which it might be reasonable or even more appropriate to employ this technique. This chapter builds up from various simple 2 latent variable models to a more complex one. The formal PLS model is provided along with a discussion of the properties of its estimates. An empirical example is provided as a basis for highlighting the various analytic considerations when using PLS and the set of tests that one can employ is assessing the validity of a PLS-based model. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
... Basic statistical analysis and R2-based data normality tests are needed to evaluate the model's fitness. Table 6 shows that the three core components of UTAUT -social influence, effort expectancy, and performance expectancy -explain 55.2% of the variations in social media adoption for business purposes, indicating a moderate relationship (Chin, 1998). Social media adoption for business, attitude toward digital entrepreneurship, and entrepreneurship education explain 50.9% of technology-based entrepreneurship behavior variations with moderate effect (Chin, 1998). ...
... Table 6 shows that the three core components of UTAUT -social influence, effort expectancy, and performance expectancy -explain 55.2% of the variations in social media adoption for business purposes, indicating a moderate relationship (Chin, 1998). Social media adoption for business, attitude toward digital entrepreneurship, and entrepreneurship education explain 50.9% of technology-based entrepreneurship behavior variations with moderate effect (Chin, 1998). ...
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... As discussed earlier, this study aims to examine the e-customer satisfaction as a mediator variable that links between e-service quality as an independent variable, and e-customer loyalty as a dependent variable. To be able to obtain valid and reliable results, this study followed the two steps approach of reporting PLS results as suggested by (Chin, 1998). Therefore, the process was to confirm the construct validity before proceeding to test the hypothesis. ...
... According to Hair et al., (2010), Chin (1998) that in order to confirm the content validity of the measurement model, researchers could use factor loading of the item. Particularly, in order to measure a particular construct, all items should be loaded highly on the construct, which they were deliberately constructed to measure. ...
... Olmedo Noguera, C. N., Vela Reyna, J. B., & Ibarra-Cisneros, M. A. E-commerce y la dinámica del cliente en México: análisis de factores clave para optimizar la compra | 1-18 Con respecto a la R2, es importante mencionar que este coeficiente representa el porcentaje de varianza explicado por el modelo para cada variable dependiente, lo que indica que también los datos se ajustan al modelo, y su función es evaluar la capacidad predictiva del mismo (Chin, 1998;Cohen, 1998;Hair et al., 2017). Los datos de las cargas factoriales estandarizadas en el modelo mostraron que todos los ítems presentaron una confiabilidad individual superior a λ > 0.707, como lo recomienda Hair et al. (2017). ...
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El objetivo del estudio fue analizar la relación entre variables como conveniencia, confianza, seguridad, satisfacción del cliente y experiencia del usuario con la intención de compra en e-commerce, así como explorar su optimización para mejorar la experiencia de compra en línea. La metodología fue cuantitativa transversal donde, por medio de una encuesta electrónica aplicada entre 2022 y 2023, se obtuvieron 2085 datos de personas en México y posteriormente se analizaron mediante un modelo de ecuaciones estructurales. Los resultados revelan una correlación entre experiencia del usuario y lealtad del cliente, destacando la seguridad en la promoción de la confianza y satisfacción. Aunque el estudio se centró en México, sus hallazgos sugieren que mejorar la experiencia del usuario y seguridad puede incrementar la lealtad e intención de compra. La literatura respalda la adopción masiva del e-commerce a nivel mundial, impulsada por su conveniencia y diversidad de opciones. El modelo integral de este estudio permite identificar factores clave para optimizar estrategias de e-commerce.
... To validate the study hypotheses and interpret if the proposed model is appropriate, the coefficient of determination R 2 , which is shown in three forms of predictability; 0.10 = weak; 0.33 = moderate; 0.67 = substantial was computed as suggested by Chin (1998). The study's R 2 outcome of 0.541 indicates that EO accounts for 54.1% of the variance in the SCR, hence falling within the moderate range. ...
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The increasing supply chains disruptions globally often leave many businesses and SMEs vulnerable. The question is whether entrepreneurial orientation of SMEs will make them more resilient to supply chain disruptions. With limited research on the relationship between entrepreneurial orientation and SMEs’ supply chain resilience (SCR) this study seeks to extend our knowledge in that respect. Grounded on the resource-based view and dynamic capabilities theory, this study examined the influence of entrepreneurial orientation on the supply chain resilience of SMEs. Five constructs of entrepreneurial orientation were adapted from literature. A cross-sectional study was employed wherein an online questionnaire was used to collect data from a sample of 173 SMEs owners/or managers. Structural equation modelling (SEM) with partial least square (PLS) technique was used to test the hypothesised model. The overall findings point towards the significant influence of EO on the SCR of SMEs as evidenced by the significant positive effect of innovativeness, risk-taking, pro-activeness and competitive aggressiveness, and autonomy dimensions of entrepreneurial orientation. These results imply that it is critical that SMEs adopt an intentional entrepreneurial oriented management philosophy which can be fostered in several ways including the promotion of a flexible organizational culture that promotes and rewards innovativeness among SME employees, and collaborative efforts between SME owners/managers and policy makers on risk management awareness and competitive aggressiveness literacy and training campaigns.
... Three primary evaluation criteria for the structural model: the R² measure for the Fig. 5. Results of assessment of structural model endogenous constructs, the predictive relevance of the model (Q 2 ), and the level and significance of the path coefficients were conducted (Chin, 2010;Hair et al., 2011). Chin (1998) suggested that values of 0.67, 0.33 and 0.19 as measures of R 2 to be considered substantial, moderate, and weak respectively. The R 2 value of the endogenous construct in this study was 0.377 (See Fig. 3); therefore, this value was considered moderate and acceptable. ...
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ARTICLE INFO ABSTRACT A Graduates' marketable skills have now become the major key of success in today labor market and have increasingly concerned by employers around the globe. This study aimed to examine the effect of Yemeni graduates' marketable skills on their perceived marketability in the Arab Gulf countries labor market. Graduates' marketable skills was assessed by way of a multi-dimensional scale which was inclusive of seven dimensions of skills: analytical thinking and problem solving skills, continuous learning and information management skills, communication skills, entrepreneurship skills, information technology application skills, leadership and management skills, and teamwork and interpersonal skills. Participants were 85 Yemeni graduates at public and private universities. The data was analyzed using Partial Least Squares-Structural Equation Modeling. The findings showed a significant positive effect for graduates' marketable skills on their perceived marketability. The study results also demonstrated the acceptability of marketable skills as an integrated construct formed by the dimensions identified. This study make a significant theoretical and methodological contribution to both the graduates' marketable skills on their perceived marketability by assessing marketable skills as an integrated reflective construct and by examining the overall marketable skills of Yemeni graduates on their perceived marketability. Copyright©2017, Fatihya Mahdi Ahmed Ali et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
... The coefficient of determination (R 2 ) quantifies the variation in the endogenous variable that is explained by the independent variable constructs [100]. Chin [101] demonstrated that R 2 values of approximately 0.19, 0.33, and 0.67, are generally considered as indicating weak, moderate, and substantial relationships, respectively. In the current study, the adjusted R 2 values for telepresence, focused attention, time distortion, and tourists' behavioral intention are 0.555, 0.646, 0.488, and 0.789, respectively, indicating that the structural model has a strong prediction ability for these constructs. ...
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... Although each path coefficient should be significant, the value of the R 2 coefficient is highly dependent on the field of study. Chin [83] suggests values of 0.67, 0.33 and 0.19 as, respectively, substantial, moderate and weak measures of R. In behavioral studies, a value of 0.2 for R 2 is generally considered acceptable [84,85]. ...
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The leadership literature suggests that a servant leadership style can reduce negative employee outcomes, even in challenging work environments such as the educational sector, where teachers play a key role in social development. This research aimed to evaluate the effect of servant leadership on work happiness and organizational justice. An explanatory study was carried out including 210 men and women who declared that they perform teaching activities, aged between 21 and 68 years (M = 38.63, SD = 10.00). The data were collected using a self-report scale of servant leadership, work happiness and organizational justice, obtaining an adequate measurement model (α = between 0.902 and 0.959; CR = between 0.923 and 0.963; AVE = 0.604 and 0.631; VIF = between 1.880 and 2.727). The theoretical model was evaluated using the Partial Least-Squares PLS-SEM method. According to the results, the hypotheses were confirmed, demonstrating that there is a significant positive effect of servant leadership on work happiness (β = 0.69; p < 0.001) and organizational justice (β = 0.24; p < 0.001) and a positive effect of work happiness on organizational justice (β = 0.61; p < 0.001). This research provides valuable insight for educational leaders seeking to improve perceptions of happiness and justice in their organizations and promotes servant leadership to achieve this goal.
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