Dealing with Endogeneity: A Nontechnical Guide for Marketing Researchers

Abstract

Partial least squares structural equation modeling (PLS-SEM) has become a popular method for estimating (complex) path models with latent variables and their relationships. Building on an introduction of the fundamentals of measure- ment and structural theory, this chapter explains how to specify and estimate path models using PLS-SEM. Complementing the introduction of the PLS-SEM method and the description of how to evaluate analysis results, the chapter also offers an overview ofcomplementary analytical techniques. An application ofthe PLS-SEM method to a well-known corporate reputation model using the SmartPLS 3 software illustrates the concepts.