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.
- Composite model
- Confirmatory and explanatory information systems research
- Model validation
- Partial least squares path modeling