Will PLS have to become factor-based to survive and thrive?

The article below provides an overview of various SEM approaches. It argues that minimization of type I and II errors, or false positives and negatives respectively in hypothesis testing, can only happen if latent variables are implemented as factors (and not as composites). It is argued that this requires the use of modern, factor-based PLS methods (known as PLSF methods), which have some advantages not only over classic PLS implementations, but also over covariance-based SEM approaches. We discussed a PLSF type in the article; namely type CFM3.

Kock, N. (2024). Will PLS have to become factor-based to survive and thrive? European Journal of Information Systems, 33(6), 882-902.

Link to full-text file for this article:

Will PLS have to become factor-based to survive and thrive?

Abstract:

Structural equation modelling (SEM) is a general method that aims at estimating models with latent variables (LVs), where the LVs are measured indirectly and with some imprecision via questionnaires. This is done usually employing question-statements answered on Likert-type scales. In this paper we discuss various forms of SEM, and demonstrate that composite-based models, common in classic partial least squares (PLS) implementations, are poorly aligned with the very idea of SEM. We argue that minimisation of type I and II errors, or false positives and negatives respectively in hypothesis testing, can only happen if LVs are implemented as factors (and not as composites). This requires the use of modern, factor-based PLS methods, which have some advantages not only over classic PLS implementations, but also over covariance-based SEM approaches. Our main goal with this paper is to stimulate debate, whether pro or against our views. If we are generally correct in our thinking, the impact on how quantitative research is conducted in the field of information systems, as well as many other fields, could be quite dramatic. The reason for this is the widespread use of SEM in information systems, business, and the behavioural sciences.

Note: Some readers of this blog have brought to our attention that a critique of the article above is already out, and with a number of mistakes and incorrect statements, such as that: they (the critics) used CFM1 because this is the only PLSF type documented in the WarpPLS User Manual (untrue and very easy to check); and that the algorithm that they analyzed (PLSF-CFM1) is a slow version of Dijkstra’s PLSc technique (CFM1 does not use PLSc at all); among other easy-to-avoid mistakes and incorrect statements. We are aware of this critique.

Best regards to all!

Conducting a difference-in-differences analysis with PLS-SEM: The classic 2x2 approach

The article below shows how one can conduct a difference-in-differences analysis employing the classic 2x2 approach for this type of analysis, using structural equation modeling via partial least squares (PLS-SEM).

Kock, N. (2024). Conducting a difference-in-differences analysis with PLS-SEM: The classic 2x2 approach. Data Analysis Perspectives Journal, 5(5), 1-8.

Link to full-text file for this and other DAPJ articles:

https://scriptwarp.com/dapj/#Published_Articles

Abstract:

Difference-in-differences analyses often employ a classic 2x2 scenario, which involves two conditions, control and treatment; and two points in time, before and after an intervention that may be tied to one of the conditions. In our analysis, we assess the impact on labor productivity of being in a more technology-intensive US state, instead of a more manufacturing-intensive one. Consistently with the difference-in-differences analysis scenario, we also assess the full latent growth effect of a government-driven age discrimination crackdown, in the technology-intensive state, on the previous effect – of being in a technology-intensive state on labor productivity. We do this by employing a model analyzed in the context of structural equation modeling via partial least squares (PLS-SEM). We also discuss advantages of using PLS-SEM in this scenario; which include assessments of causality, common method bias, and endogeneity.

Best regards to all!

Combining composites and factors in PLS-SEM models: A multi-algorithm technique

The article below presents a multi-algorithm technique for combining latent variables estimated as composites or factors into a single model, in the context of structural equation modeling via partial least squares (PLS-SEM).

Kock, N. (2024). Combining composites and factors in PLS-SEM models: A multi-algorithm technique. Data Analysis Perspectives Journal, 5(4), 1-8.

Link to full-text file for this and other DAPJ articles:

https://scriptwarp.com/dapj/#Published_Articles

Abstract:

A multi-algorithm technique is presented for combining latent variables estimated as composites or factors into a single model, in the context of structural equation modeling via partial least squares. The multi-algorithm technique consists of three key steps: selecting composite-based or factor-based outer model analysis algorithms to be used for latent variable estimation; adding the latent variables estimated with the chosen composite-based or factor-based algorithms as new standardized variables; and creating and estimating a final model with the new variables added as single indicators of latent variables.

Best regards to all!

A comparison of data analyses with WarpPLS and Stata: A study of trust and its role regarding internet use and subjective well-being

The article below provides a comparative assessment of analyses using the software packages WarpPLS and Stata, in the context of structural equation modeling via partial least squares (PLS-SEM), based on an illustrative study of trust and its role regarding internet use and subjective well-being.

Samak, A., Islam, M. R., & Hanke, D. (2024). A comparison of data analyses with WarpPLS and Stata: A study of trust and its role regarding internet use and subjective well-being. Data Analysis Perspectives Journal, 5(3), 1-6.

Link to full-text file for this and other DAPJ articles:

https://scriptwarp.com/dapj/#Published_Articles

Abstract:

This study investigates the mediating roles of social and institutional trust in the relationship between internet use and subjective well-being, using partial least squares (PLS)-based structural equation modeling (SEM). We compare WarpPLS 8.0 and Stata’s PLS-SEM package, utilizing data from the European Social Survey (ESS), round 8. Our results show consistent model fit and path coefficients across both tools, confirming the significant mediating effects of trust. WarpPLS stands out for its advanced model diagnostics, while Stata’s PLS-SEM excels in integrating with Stata’s broader data management and statistical analysis tools. This comparative analysis contributes to the SEM methodological literature.

Best regards to all!

A comparison of multiple regression analyses in Stata and WarpPLS

The article below provides a comparative assessment of multiple regression analyses using the software packages WarpPLS and Stata.

Tarkom, A., & Gopal, P. (2024). A comparison of multiple regression analyses in Stata and WarpPLS. Data Analysis Perspectives Journal, 5(2), 1-8.

Link to full-text file for this and other DAPJ articles:

https://scriptwarp.com/dapj/#Published_Articles

Abstract:

This paper illustrates a comparative analysis of multiple regression analysis using two different software. The software packages used are WarpPLS 8.0 and Stata 17. Multiple regression analyses performed with both software produce the same results. WarpPLS 8.0 has the added advantage over Stata owing to its graphic user interface that aids in model specification and visualization. Furthermore, it provides users with additional tools to visualize moderating effects. Both software have equal accuracy in terms of the results but differences in terms of what they offer users.

Best regards to all!

PLS Applications Symposium; 9-11 April 2025; Laredo, Texas

PLS Applications Symposium; 9-11 April 2025; Laredo, Texas
(Abstract submissions accepted until 14 February 2025)

*** Attendance (face-to-face or online) ***

The Symposium will be conducted as part of the multidisciplinary Annual Western Hemispheric Trade Conference, organized by the Center for the Study of Western Hemispheric Trade. Our workshop in PLS-SEM will be conducted entirely online. Our expectation is that participants will be allowed to attend Conference sessions either face-to-face or online.

When indicating the type of their submission, participants should indicate whether they intend to attend face-to-face or online. This should be done within parentheses after indicating the submission type. For example - "Type of submission: Presentation (online)".

*** Only abstracts are needed for the submissions ***

The partial least squares (PLS) method has increasingly been used in a variety of fields of research and practice, particularly in the context of PLS-based structural equation modeling (SEM). The focus of this Symposium is on the application of PLS-based methods, from a multidisciplinary perspective. For types of submissions, deadlines, and other details, please visit the Symposium’s web site:

https://plsas.net

*** Workshop on PLS-SEM ***

On 9 April 2025 a full-day workshop on PLS-SEM will be conducted only by Dr. Ned Kock and Dr. Geoffrey Hubona, using the software WarpPLS. Dr. Kock is the original developer of this software, which is one of the leading PLS-SEM tools today; used by thousands of researchers from a wide variety of disciplines, and from many different countries. Dr. Hubona has extensive experience conducting research and teaching topics related to PLS-SEM, using WarpPLS and a variety of other tools. This workshop will be hands-on and interactive, and will have two parts: (a) basic PLS-SEM issues, conducted in the morning (9 am - 12 noon) by Dr. Hubona; and (b) intermediate and advanced PLS-SEM issues, conducted in the afternoon (2 pm - 5 pm) by Dr. Kock. Participants may attend either one, or both of the two parts.

The following topics, among others, will be covered - Running a Full PLS-SEM Analysis - Conducting a Moderating Effects Analysis - Viewing Moderating Effects via 3D and 2D Graphs - Creating and Using Second Order Latent Variables - Viewing Indirect and Total Effects - Viewing Skewness and Kurtosis of Manifest and Latent Variables - Viewing Nonlinear Relationships - Solving Collinearity Problems - Conducting a Factor-Based PLS-SEM Analysis - Using Consistent PLS Factor-Based Algorithms - Exploring Statistical Power and Minimum Sample Sizes - Exploring Conditional Probabilistic Queries - Exploring Full Latent Growth - Conducting Multi-Group Analyses - Assessing Measurement Invariance - Creating Analytic Composites.

-----------------------------------------------------------
Ned Kock
Symposium Chair
https://plsas.net

PLS Applications Symposium; 10-12 April 2024; Laredo, Texas

PLS Applications Symposium; 10-12 April 2024; Laredo, Texas
(Abstract submissions accepted until 16 February 2024)

*** Attendance (face-to-face or online) ***

The Symposium will be conducted as part of the multidisciplinary Annual Western Hemispheric Trade Conference, organized by the Center for the Study of Western Hemispheric Trade. Our workshop in PLS-SEM will be conducted entirely online. Our expectation is that participants will be allowed to attend Conference sessions either face-to-face or online.

When indicating the type of their submission, participants should indicate whether they intend to attend face-to-face or online. This should be done within parentheses after indicating the submission type. For example - "Type of submission: Presentation (online)".

*** Only abstracts are needed for the submissions ***

The partial least squares (PLS) method has increasingly been used in a variety of fields of research and practice, particularly in the context of PLS-based structural equation modeling (SEM). The focus of this Symposium is on the application of PLS-based methods, from a multidisciplinary perspective. For types of submissions, deadlines, and other details, please visit the Symposium’s web site:

https://plsas.net

*** Workshop on PLS-SEM ***

On 10 April 2024 a full-day workshop on PLS-SEM will be conducted only by Dr. Ned Kock and Dr. Geoffrey Hubona, using the software WarpPLS. Dr. Kock is the original developer of this software, which is one of the leading PLS-SEM tools today; used by thousands of researchers from a wide variety of disciplines, and from many different countries. Dr. Hubona has extensive experience conducting research and teaching topics related to PLS-SEM, using WarpPLS and a variety of other tools. This workshop will be hands-on and interactive, and will have two parts: (a) basic PLS-SEM issues, conducted in the morning (9 am - 12 noon) by Dr. Hubona; and (b) intermediate and advanced PLS-SEM issues, conducted in the afternoon (2 pm - 5 pm) by Dr. Kock. Participants may attend either one, or both of the two parts.

The following topics, among others, will be covered - Running a Full PLS-SEM Analysis - Conducting a Moderating Effects Analysis - Viewing Moderating Effects via 3D and 2D Graphs - Creating and Using Second Order Latent Variables - Viewing Indirect and Total Effects - Viewing Skewness and Kurtosis of Manifest and Latent Variables - Viewing Nonlinear Relationships - Solving Collinearity Problems - Conducting a Factor-Based PLS-SEM Analysis - Using Consistent PLS Factor-Based Algorithms - Exploring Statistical Power and Minimum Sample Sizes - Exploring Conditional Probabilistic Queries - Exploring Full Latent Growth - Conducting Multi-Group Analyses - Assessing Measurement Invariance - Creating Analytic Composites.

-----------------------------------------------------------
Ned Kock
Symposium Chair
https://plsas.net