Evaluating the Predictive Performance of Composites in PLS Path Modeling

5 Pages Posted: 19 Oct 2017 Last revised: 19 Nov 2018

See all articles by Nicholas Danks

Nicholas Danks

National Tsing Hua University

Soumya Ray

National Tsing Hua University, Taiwan

Galit Shmueli

Institute of Service Science, National Tsing Hua University, Taiwan

Date Written: October 18, 2017

Abstract

Efforts to evaluate predictive performance in Partial Least Squares (PLS) path modeling are making major headway, but have largely focused on the prediction of measurement items. There is still a need to clarify what prediction of constructs might entail. We examine the challenges of measuring predictive power and validity at the construct level. We then propose a technique for overcoming these challenges and provide suitable predictive metrics.

Keywords: Predictive Validity, Composites, Partial Least Squares (PLS) path modeling, Structural Equation Modeling (SEM)

Suggested Citation

Danks, Nicholas and Ray, Soumya and Shmueli, Galit, Evaluating the Predictive Performance of Composites in PLS Path Modeling (October 18, 2017). Available at SSRN: https://ssrn.com/abstract=3055222 or http://dx.doi.org/10.2139/ssrn.3055222

Nicholas Danks (Contact Author)

National Tsing Hua University ( email )

No. 101, Section 2, Guangfu Road, East District
Hsin Chu 3, 300
China

Soumya Ray

National Tsing Hua University, Taiwan ( email )

No. 101, Sec. 2, Kuang Fu Rd
Hsinchu, 30013
Taiwan

HOME PAGE: http://soumyaray.com

Galit Shmueli

Institute of Service Science, National Tsing Hua University, Taiwan ( email )

Hsinchu, 30013
Taiwan

HOME PAGE: http://www.iss.nthu.edu.tw

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