Inconsistencies of the PLS-PM approach to structural equation models with formative-reflective schemes


Abstract


The principal aim of the paper is to show the inconsistencies of  PLS-PM as a statistical tool to estimate structural equation models with formative-reflective schemes. We show that PLS-PM is not suitable to this kind of models, since it may even fail in identifying existing causal links between the variables of concern. We bring evidences of these facts discussing a real-data example and comparing the results by PLS-PM with those obtained by a simpler least squares approach.

DOI Code: 10.1285/i20705948v5n3p333

Keywords: Formative-Reflective models; PLS-PM; Causal models

References


Bruhn, M., Georgi, D., Hadwick, K. (2008). Customer equity management as formative second-order construct. Journal of Business Research, 61, 1292-1301.

Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., Everitt Bryant B. (1996). The American Customer Satisfaction Index: Nature, Purpose, and Findings. Journal of Marketing, 60, 7-18.

Marcoulides, G. A., Chin, W., W., Saunders, C. (2009). A Critical Look at Partial Least Squares Modeling. MIS Quarterly, 33 (1), 171-175.

Tenenhaus, M., Esposito Vinzi, V., Chatelin, Y. M., Lauro, C., (2005). PLS path modeling. Computational Statistics & Data Analysis, 48, 159–205.

Vinzi, V. E., Trinchera, L., Amato S., (2010). PLS Path Modeling: From Foundations to Recent Developments and Open Issues for Model Assessment and Improvement, In V. Handbook of Partial Least Squares, eds. E. Vinzi et al., Springer Handbooks of Computational Statistics. Springer-Verlag Berlin Heidelberg, 47-82.

Vittadini, G. (1989). Indeterminacy problems in the Lisrel model. Multivariate Behavioral Research, 24(4), 397-414.

Vittadini, G., Minotti, S. C., Fattore, M., Lovaglio, P. G. (2007). On the relationships among latent variables and residuals in PLS path modeling: the formative-reflective scheme. Computational Statistics & Data Analysis, 51, 5828-5846.


Full Text: PDF
کاغذ a4
Bookmark and Share


Creative Commons License
This work is licensed under a Creative Commons Attribuzione - Non commerciale - Non opere derivate 3.0 Italia License.