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A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM)

A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM)

Second Edition

March 2016 | 384 pages | SAGE Publications, Inc

With applications using SmartPLS (—the primary software used in partial least squares structural equation modeling (PLS-SEM)—this practical guide provides concise instructions on how to use this evolving statistical technique to conduct research and obtain solutions. Featuring the latest research, new examples, and expanded discussions throughout, the Second Edition is designed to be easily understood by those with limited statistical and mathematical training who want to pursue research opportunities in new ways.

Please note that all examples in this Second Edition use SmartPLS 3.
To access this software, please visit this link.

Chapter 1: An Introduction to Structural Equation Modeling
What Is Structural Equation Modeling?  
Considerations in Using Structural Equation Modeling  
Structural Equation Modeling With Partial Least Squares Path Modeling  
PLS-SEM, CB-SEM, and Regressions Based on Sum Scores  
Organization of Remaining Chapters  
Chapter 2: Specifying the Path Model and Examining Data
Stage 1: Specifying the Structural Model  
Stage 2: Specifying the Measurement Models  
Stage 3: Data Collection and Examination  
Case Study Illustration: Specifying the PLS-SEM Model  
Path Model Creation Using the SmartPLS Software  
Chapter 3: Path Model Estimation
Stage 4: Model Estimation and the PLS-SEM Algorithm  
Case Study Illustration: PLS Path Model Estimation (Stage 4)  
Chapter 4: Assessing PLS-SEM Results Part I: Evaluation of Reflective Measurement Models
Overview of Stage 5: Evaluation of Measurement Models  
Stage 5a: Assessing Results of Reflective Measurement Models  
Case Study Illustration—Reflective Measurement Models  
Running the PLS-SEM Algorithm  
Reflective Measurement Model Evaluation  
Chapter 5: Assessing PLS-SEM Results Part II: Evaluation of the Formative Measurement Models
Stage 5b: Assessing Results of Formative Measurement Models  
Bootstrapping Procedure  
Bootstrap Confidence Intervals  
Case Study Illustration—Evaluation of Formative Measurement Models  
Chapter 6: Assessing PLS-SEM Results Part III: Evaluation of the Structural Model
Stage 6: Assessing PLS-SEM Structural Model Results  
Case Study Illustration—How Are PLS-SEM Structural Model Results Reported?  
Chapter 7: Mediator and Moderator Analysis
Chapter 8: Outlook on Advanced Methods
Importance-Performance Map Analysis  
Hierarchical Component Models  
Confirmatory Tetrad Analysis  
Dealing With Observed and Unobserved Heterogeneity  
Consistent Partial Least Squares  


Student Resource Site
Visit the companion website to download data sets and other materials to supplement your studies in PLS-SEM!

“A text that students will find easy to read and enjoyable.”

Toni M. Somers
Wayne State University

The book brings new possibilities to analyse data. The book is easy to understand. Even the advanced topics are clear and easy to apply.

Professor Lucas Lira Finoti
Business Administration , FACEAR
June 20, 2016

Sample Materials & Chapters

Chapter 4

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Joseph F. Hair, Jr.

Joe F. Hair, Jr. is Professor of Marketing, DBA Director and the Cleverdon Chair of Business in the Mitchell College of Business, University of South Alabama. He previously was Senior Scholar, DBA Program, Coles College of Business, Kennesaw State University, held the Copeland Endowed Chair of Entrepreneurship and was Director, Entrepreneurship Institute, Ourso College of Business Administration, Louisiana State University. He has authored over 60 books, including Multivariate Data Analysis (7th edition, 2010) (cited 140,000+ times), MKTG (10th  edition, 2016), Essentials of Business Research Methods (2016), and Essentials of... More About Author

G. T. Hult

Dr. G. Tomas M. Hult is Professor and Byington Endowed Chair in International Business and Director of the International Business Center in the Eli Broad College of Business at Michigan State University. He has been Executive Director of the Academy of International Business and President of the AIB Foundation since 2004, was Editor-in-Chief of the Journal of the Academy of Marketing Science from 2009 to 2015, and has been on the U.S. Department of Commerce’s District Export Council since 2012. Professor Hult is one of some 80 elected Fellows of the Academy of International Business. He is one of the world’s leading authorities in... More About Author

Christian M. Ringle

Christian M. Ringle is a Chaired Professor of Management at the Hamburg University of Technology (Germany) and Conjoint Professor at the Faculty of Business Law at the University of Newcastle (Australia). He holds a master’s degree in business administration from the University of Kansas and received his doctor of philosophy from the University of Hamburg (Germany). His widely published research addresses the management of organizations, strategic and human resource management, marketing, and quantitative methods for business and market research. He is cofounder of SmartPLS (, a software tool with a graphical user... More About Author

Marko Sarstedt

Marko Sarstedt is Chaired Professor of Marketing at the Otto-von-Guericke-University Magdeburg (Germany) and Conjoint Professor to the Faculty of Business and Law at the University of Newcastle (Australia). He previously was an Assistant Professor of Quantitative Methods in Marketing and Management at the Ludwig-Maximilians-University Munich (Germany). His main research is in the application and advancement of structural equation modeling methods to further the understanding of consumer behavior and to improve marketing decision-making. His research has been published in journals such as Journal of Marketing Research, Journal of the... More About Author

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ISBN: 9781483377445