Mediation Analysis in Partial Least Squares Path Modeling: Helping Researchers Discuss More Sophisticated Models

Abstract

Purpose – Indirect or mediated effects constitute a type of relationship between constructs that often occurs in partial least squares path modeling (PLS). Over the past few years, the methods for testing mediation have become more sophisticated. However, many researchers continue to use outdated methods to test mediating effects in PLS, which can lead to erroneous results. One reason for the use of outdated methods or even the lack of their use altogether is that no systematic tutorials on PLS exist that draw on the newest statistical findings.

Design/methodology/approach – This study illustrates the state-of-the-art use of mediation analysis in the context of PLS.

Findings – This study facilitates the adoption of modern procedures in PLS by challenging the conventional approach to mediation analysis and providing alternatives that are more accurate. In addition, we propose a decision tree and classification of mediating effects.

Originality/value – Our recommended approach offers a wide range of testing options (e.g., multiple mediators) that go beyond simple mediation analysis alternatives, helping researchers discuss their studies in a more accurate way.

Keywords: Mediation Analysis, Indirect Effects, Bootstrapping, Multiple Mediation, Partial Least Squares, PLS, Structural Equation Modeling