An Assessment of the Use of Partial Least Squares Structural Equation Modeling (PLS-SEM) in Hospitality Research

The International Journal of Contemporary Hospitality Management, 30 (1), 514-538, 2018, DOI: 10.1108/IJCHM-10-2016-0568

39 Pages Posted: 3 Mar 2018 Last revised: 22 Sep 2018

See all articles by Faizan Ali

Faizan Ali

Independent

S. Mostafa Rasoolimanesh

Universiti Sains Malaysia (USM) - School of Housing, Building and Planning

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

Ki Sang Ryu

Independent

Date Written: January 15, 2018

Abstract

Purpose Structural equation modeling (SEM) depicts one of the most salient research methods across a variety of disciplines, including hospitality management. Although for many researchers, SEM is equivalent to carrying out covariance-based SEM, recent research advocates the use of partial least squares structural equation modeling (PLS-SEM) as an attractive alternative. The purpose of this paper is to systematically examine how PLS-SEM has been applied in major hospitality research journals with the aim of providing important guidance and, if necessary, opportunities for realignment in future applications. Because PLS-SEM in hospitality research is still in an early stage of development, critically examining its use holds considerable promise to counteract misapplications which otherwise might reinforce over time.

Design/methodology/approach All PLS-SEM studies published in the six SSCI-indexed hospitality management journals between 2001 and 2015 were reviewed. Tying in with the prior studies in the field, the review covers reasons for using PLS-SEM, data characteristics, model characteristics, the evaluation of the measurement models, the evaluation of the structural model, reporting and use of advanced analyses.

Findings Compared to other fields, the results show that several reporting practices are clearly above standard but still leave room for improvement, particularly regarding the consideration of state-of-the art metrics for measurement and structural model assessment. Furthermore, hospitality researchers seem to be unaware of the recent extensions of the PLS-SEM method, which clearly extend the scope of the analyses and help gaining more insights from the model and the data. As a result of this PLS-SEM application review in studies, this research presents guidelines on how to accurately use the method. These guidelines are important for the hospitality management and other disciplines to disseminate and ensure the rigor of PLS-SEM analyses and reporting practices. Research limitations/implications Only articles published in the SSCI-indexed hospitality journals were examined and any journals indexed in other databases were not included. That is, while this research focused on the top-tier hospitality management journals, future research may widen the scope by considering hospitality management-related studies from other disciplines, such as tourism research or general management.

Originality/value This study contributes to the literature by providing hospitality researchers with the updated guidelines for PLS-SEM use. Based on a systematic review of current practices in the hospitality literature, critical methodological issues when choosing and using the PLS-SEM were identified. The guidelines allow to improve future PLS-SEM studies and offer recommendations for using recent advances of the method.

Keywords: PLS-SEM, Hospitality research, Structural equation modelling (SEM), Partial least squares (PLS)

Suggested Citation

Ali, Faizan and Rasoolimanesh, S. Mostafa and Sarstedt, Marko and Ringle, Christian M. and Ryu, Ki Sang, An Assessment of the Use of Partial Least Squares Structural Equation Modeling (PLS-SEM) in Hospitality Research (January 15, 2018). The International Journal of Contemporary Hospitality Management, 30 (1), 514-538, 2018, DOI: 10.1108/IJCHM-10-2016-0568 . Available at SSRN: https://ssrn.com/abstract=3128204

Faizan Ali

Independent ( email )

No Address Available
United States

S. Mostafa Rasoolimanesh

Universiti Sains Malaysia (USM) - School of Housing, Building and Planning ( email )

No.1
Jalan Taylor's
Subang Jaya, Selangor 47500
Malaysia

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

Ki Sang Ryu

Independent ( email )

No Address Available
United States

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