Common Beliefs and Reality About Partial Least Squares: Comments on Rönkkö & Evermann (2013)

Organizational Research Methods, Volume 17, Issue 2, pp. 182-209, 2014

Posted: 26 Apr 2014 Last revised: 2 May 2014

See all articles by Jörg Henseler

Jörg Henseler

Institute for Management Research, Radboud University Nijmegen; Instituto Superior de Estatística e Gestão de Informação, Universidade Nova de Lisboa

Theo Klaas Dijkstra

Independent

Marko Sarstedt

Otto-von-Guericke-Universität Magdeburg; Otto-von-Guericke-Universität Magdeburg; University of Newcastle (Australia)

Christian M. Ringle

Hamburg University of Technology (TUHH); Waikato Management School

A. Diamantopoulos

Independent

Detmar Straub

Georgia State University

David Ketchen

Independent

Joseph F. Hair

Kennesaw State University

G. Tomas M. Hult

Michigan State University

Roger J. Calantone

Independent

Date Written: 2014

Abstract

This article addresses Rönkkö and Evermann’s criticisms of the partial least squares (PLS) approach to structural equation modeling. We contend that the alleged shortcomings of PLS are not due to problems with the technique, but instead to three problems with Rönkkö and Evermann’s study: (a) the adherence to the common factor model, (b) a very limited simulation designs, and (c) overstretched generalizations of their findings. Whereas Rönkkö and Evermann claim to be dispelling myths about PLS, they have in reality created new myths that we, in turn, debunk. By examining their claims, our article contributes to reestablishing a constructive discussion of the PLS method and its properties. We show that PLS does offer advantages for exploratory research and that it is a viable estimator for composite factor models. This can pose an interesting alternative if the common factor model does not hold. Therefore, we can conclude that PLS should continue to be used as an important statistical tool for management and organizational research, as well as other social science disciplines.

JEL Classification: A00

Suggested Citation

Henseler, Jörg and Dijkstra, Theo Klaas and Sarstedt, Marko and Ringle, Christian M. and Diamantopoulos, A. and Straub, Detmar and Ketchen, David and Hair, Joseph F. and Hult, G. Tomas M. and Calantone, Roger J., Common Beliefs and Reality About Partial Least Squares: Comments on Rönkkö & Evermann (2013) (2014). Organizational Research Methods, Volume 17, Issue 2, pp. 182-209, 2014. Available at SSRN: https://ssrn.com/abstract=2428747

Jörg Henseler

Institute for Management Research, Radboud University Nijmegen ( email )

Thomas van Aquinostraat 3
P.O. Box 9108
Nijmegen, 6500HK
Netherlands
+31 24 3611854 (Phone)
+31 24 3611933 (Fax)

HOME PAGE: http://www.ru.nl/fm/henseler

Instituto Superior de Estatística e Gestão de Informação, Universidade Nova de Lisboa ( email )

Campus de Campolide
Lisbon, 1070-312
Portugal

HOME PAGE: http://www.henseler.com

Theo Klaas Dijkstra

Independent ( email )

No Address Available

Marko Sarstedt

Otto-von-Guericke-Universität Magdeburg ( email )

Universitätspl. 2
PSF 4120
Magdeburg, D-39106
Germany

Otto-von-Guericke-Universität Magdeburg ( email )

Universitätspl. 2
PSF 4120
Magdeburg, D-39106
Germany

University of Newcastle (Australia) ( email )

University Drive
Callaghan, NSW 2308
Australia

Christian M. Ringle (Contact Author)

Hamburg University of Technology (TUHH) ( email )

Schwarzenbergstr. 95 (D)
Hamburg, D-21071
Germany

HOME PAGE: http://www.tuhh.de/hrmo

Waikato Management School ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

A. Diamantopoulos

Independent

No Address Available

Detmar Straub

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

David Ketchen

Independent ( email )

No Address Available

Joseph F. Hair

Kennesaw State University ( email )

1000 Chastain Rd
Kennesaw, GA 30144
United States

G. Tomas M. Hult

Michigan State University ( email )

East Lansing, MI 48824-1121
United States

Roger J. Calantone

Independent

No Address Available

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