PLS-SEM: The Holy Grail for Advanced Analysis

Abstract

Advanced analytical techniques are reviewed for researchers wanting to expand their knowledge of how partial least squares structural equation modeling (PLS-SEM) facilitates better understanding of complex data relationships. We provide a brief overview of the differences between covariance-based structural equation modeling (CB-SEM) and PLS-SEM along with guidelines for the appropriate application of each. The focus is on mediation, moderation, multi-group analysis, and hierarchical component models. We also summarize several emerging analytical tools available with PLS-SEM. The ease of applying these advanced analytical techniques in many different research contexts makes PLS-SEM the “holy grail” for advanced analysis.