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Benitez, Jose; Henseler, Jörg; Castillo, Ana; Schuberth, Florian
Information & management, March 2020, 2020-03-00, 2020-03, Volume: 57, Issue: 2Journal Article
•PLS-PM has been subject to many improvements in last years.•Prior PLS guidelines have not covered the entire recent developments.•We explain how to perform and report an up-to-date empirical analysis with PLS.•We provide a fictive illustrative example on business value of social media. Partial least squares path modeling (PLS-PM) is an estimator that has found widespread application for causal information systems (IS) research. Recently, the method has been subject to many improvements, such as consistent PLS (PLSc) for latent variable models, a bootstrap-based test for overall model fit, and the heterotrait-to-monotrait ratio of correlations for assessing discriminant validity. Scholars who would like to rigorously apply PLS-PM need updated guidelines for its use. This paper explains how to perform and report empirical analyses using PLS-PM including the latest enhancements, and illustrates its application with a fictive example on business value of social media.
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