Development and update of guidelines to perform and report partial least squares path modeling in Information Systems research

Abstract

Partial least squares (PLS) path modeling has been widely and dominantly used in the field of Information Systems (IS) during decades. The usage and prescriptions for performing PLS path modeling has been recently examined, debated, and improved, which have generated substantial changes, contributions, and developments (e.g., composite models, confirmatory composite analysis, bootstrap-based test of overall model fit evaluation) on a separate manner that requires a holistic piece of work to guide IS scholars. This paper introduces PLS path modeling to be skilled to perform and report a high quality PLS analysis by following the latest suggested standards. We provide a constructive and illustrative example on a model on business value of social media in companies using data simulated for 300 observations to explain the latest contributions in PLS path modeling. The key contribution of this manuscript is the description, position, explanation, development, and illustration at the user-level, of the when, why, and how to perform a high-quality PLS estimation by following the latest standards suggested in prior methodological literature on PLS path modeling.

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