Structural Equation Modeling in Information Systems Research Using Partial Least Squares

Abstract: Empirical studies that use structural equation modeling (SEM) are widespread in information systems research. During the last few years, the component-based approach partial least squares (PLS) for testing structural models has become increasingly popular. At the same time, this approach's limitations have become a greater concern. Some researchers even suggest using alternative approaches that are considered superior to PLS. However, we believe that PLS is an adequate choice if the research problem meets certain characteristics and the technique is properly used. Thus, the intention of this article is to resolve potential uncertainties that researchers intending to use PLS might have. Consequently,…