Partial least squares regression

Mathematics

Confirmatory factor analysis

Latent variable

Causal model

Data mining

Statistics

Machine learning

Econometrics

Estimator

Computer science

Path analysis (statistics)

Structural equation modeling

Information & Management

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.

How to perform and report an impactful analysis using partial least squares: Guidelines for confirmatory and explanatory IS research