Structural Parameters under Partial Least Squares and Covariance-Based Structural Equation Modeling: A Comment on Yuan and Deng (2021)

Abstract

In their article, Yuan and Deng argue that a structural parameter under partial least squares structural equation modeling (PLS-SEM) is zero if and only if the same structural parameter is zero under covariance-based structural equation modeling (CB-SEM). Yuan and Deng then conclude that statistical tests on individual structural parameters assessing the null hypothesis of no effect can achieve the same purpose in CB-SEM and PLS-SEM. Our response to their article highlights that the relationship they find between PLS-SEM and CB-SEM structural parameters is not universally valid, and that consequently, tests on individual parameters in CB-SEM and PLS-SEM generally do not fulfill the same purpose.