Applying multigroup analysis in PLS-SEM: A step-by-step process

Abstract

This book chapter identifies the importance and different uses for multigroup analysis, such as research interests in cross-cultural or gender differences. Multigroup analysis via partial least squares structural equations modeling, which tests a single structural relationship at a time, is an effective way to evaluate moderation across multiple relationships versus standard moderation. Step-by-step instructions and guidelines using SmartPLS 3.0 are provided using a sample dataset. The instructions include an assessment of the measurement characteristics of the constructs by including the MICOM procedure, which adds an additional level of accuracy. Examples of both positive and negative outcomes as well as potential solutions to problems are provided in order to help users understand how to apply multigroup analysis to their own dataset. By using multigroup analysis, researchers are able to uncover differences of subsamples within the total population that is not evident when examined as a whole. Researchers having the ability to run multigroup analysis considerably improve the likelihood of identifying significant and meaningful differences in various relationships across group-specific results.