2022 Cais Pls-Sem
2022 Cais Pls-Sem
A ssociation for
I nformation
S ystems
Klaas-Jan Stol
School of Computer Science and Information Technology, University College Cork & Lero, Cork, Ireland
[email protected]
Abstract:
Evermann and Rönkkö aim to present an overview of recent advances in PLS, and while some advances are
described with several useful recommendations, we argue that their article does not fully deliver on its promise. In this
response, we argue that their position presents an unbalanced view, ignores several methodological advances by IS
scholars. We note that several recommendations are so stringent that implementing that there are philosophical and
practical differences that are insufficiently taken into account. Further, several studies that highlight the shortcomings
of PLS seem to be based on specially designed cases that are not necessarily representative of typical use of PLS. In
our response, we call for a more balanced debate that takes into consideration different perspectives and that studies
of the performance of PLS are conducted fairly. While we do not disagree with E&R’s recommendations, the
implementation of those is challenged by a lack of tool support, and we observe that besides scholars using PLS,
editors and reviewers also have a responsibility to be cognizant of methodological advances. We commend E&R for
their efforts in studying the limitations of PLS which have spurred several methodological advances, but also caution
that we should not ‘throw the baby out with the bathwater,” by discarding PLS for its known limitations.
[Department statements, if appropriate, will be added by the editors. Teaching cases and panel reports will have a
statement, which is also added by the editors.]
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1 Introduction
When [Copernican astronomy’s] predecessor, the Ptolemaic system, was first developed during
the last two centuries before Christ and the first two after, it was admirably successful in
predicting the changing positions of both stars and planets. No other ancient system had
performed so well; for the stars, Ptolemaic astronomy is still widely used today as an
engineering approximation; for the planets, Ptolemy’s predictions were as good as Copernicus’.
—Thomas Kuhn, The Structure of Scientific Revolutions
Throughout history, scholars have developed theories and models to explain and predict the world around
them. Claudius Ptolemy (c. 100 a.d. — c. 175 a.d.) developed theories to predict the position of heavenly
bodies and tide tables, which were based on the false premise that Earth was at the center of the
universe. Copernicus, on the other hand, correctly placed the Sun at the center, and thus his theories
should have performed better… except that his theory still made the wrong assumption that planetary
orbits were circular and thus did not necessarily reflect reality more accurately. In fact, in certain cases,
Ptolemy’s predictions were more accurate! Other examples of competing and incompatible theories in the
history of science include quantum mechanics vs. the theory of relativity, the wave theory of light vs. the
particle (corpuscular) theory of light.
We are reminded of these competing theories in the debates on the use of PLS, because PLS is typically
used as an alternative to the common factor based approach to structural equation modeling (SEM),
commonly referred to as covariance-based SEM (CB-SEM). PLS-SEM and CB-SEM employ different
representations of theoretical constructs; both can be used to evaluate structural equation models, but the
way they work is different.
In this commentary we respond to Evermann and Rönkkö’s (2021) article “Recent Developments in PLS.”
We recently completed a review of the use of PLS in the Software Engineering (SE) literature (Russo and
Stol, 2021); many of the studies that we reviewed, though published in quality SE journals and
conferences, seem to have been authored by IS researchers, and thus our observations would be directly
relevant to IS researchers also.
We applaud Evermann and Rönkkö (E&R) for taking on the major task of studying PLS as an approach to
evaluate structural equation models (SEM). It is essential that scholars stay informed about new
methodological advances, and that methods are used and reported appropriately. The mis-use and
misrepresentation of methods happens not only for quantitative methods; we also observed this problem
in the use of qualitative methods such as Grounded Theory (Stol et al., 2016). Methodological reviews
help to offer a mirror to the community to assess the state of practice of reporting our research and
identify areas for improvement.
E&R correctly observed that PLS was ascribed properties and benefits that had not been empirically
demonstrated. Several misconceptions exist around the PLS approach, many of which have been
debated in other critical articles (Aguirre-Urreta and Marakas, 2014; Henseler et al., 2014; Petter, 2018;
Rigdon et al., 2014). E&R’s concerns about the mis-use, reporting, and, evidently, reviewers’ lack of
knowledge of PLS are warranted. As our understanding of PLS has advanced over the years, it is
imperative that these are clearly communicated to the wider IS community who, as E&R pointed out, were
among the early adopters, and who have relied on its use to develop some well-known theories within the
IS literature.
And so, the tone of E&R’s abstract sounds very promising indeed:
“This paper comments on recent developments in PLS to ensure that IS researchers have up-
to-date methodological knowledge and best practices if they decide to use PLS.”
Except that the article does not deliver on this promise, in our view, for two reasons. First, discussion of
several recent developments that are relevant to IS scholars are notably lacking. Relevant work by Kock
and Lynn (2012) and Kock (2015a, 2015b 2018, 2019a, 2019b) offers several approaches to address
some issues in PLS-SEM. For example, Kock (2015a, 2019a) offers a new method to conduct factor-
based PLS-SEM analyses. A key issue underpinning the debate between proponents and detractors of
PLS-SEM is the representation of latent variables as composites, rather than as common factors as is the
case in CB-SEM. These two representations are incompatible. As Kock pointed out, the proposed factor-
based PLS-SEM, which is labeled PLSF-SEM, “could be a solid step in the resolution of this debate.”
A second reason why we argue that E&R’s article does not deliver is, what we perceive to be an overly
critical and polarizing position towards PLS, which has been extensively documented in their previous
articles (Rönkkö and Evermann, 2013; Rönkkö et al., 2015; Rönkkö et al., 2016; Rönkkö et al., 2021).
While we don’t disagree with the recommendations that E&R propose, we would argue that to truly
achieve their stated goal, namely to “ensure that IS researchers have up-to-date methodological
knowledge,” a more inclusive review of recent developments is needed, but also a less polarizing
presentation of the shortcomings of PLS.
In this commentary we seek to add some nuance to E&R’s points of critique. We do not share their critical
view on PLS; as scholars, we have used both PLS-SEM (Russo, 2021; Sharma and Stol, 2020) and CB-
SEM (Russo et al., 2021; Schaarschmidt and Stol, 2018), and we have no bias towards one or the other.
A central argument is that both PLS-SEM and CB-SEM are useful tools to IS and SE scholars, but that
both have strengths and weaknesses, much like both the Ptolemaic and Copernican systems. Despite the
weakness (indeed, incorrectness) of the Ptolemaic system, it remains to be useful. Hence, we argue,
“don’t throw the baby out with the bathwater!” Which ‘system’ to use (PLS-SEM, CB-SEM) depends on the
situation, context, and focus of the research (Evermann and Tate, 2016; Petter, 2018), although as we
point out later in our response, current guidelines are somewhat limited.
In what follows, we present a number of comments and observations (Sec. 2), and we conclude with a
number of recommendations to help the debate forward (Sec. 3).
presenting a case that is quite technical in nature, supported by formulas, deductions, and results of
simulation studies (which many applied scholars using PLS-SEM, we reckon, would have difficulty
performing; we do appreciate Aguirre-Urreta & Rönkkö’s (2015) tutorial), E&R’s arguments seem quite
reasonable; the reader is “overwhelmed” by the arguments, and the formulaic presentation would suggest
that “it must be true because the math says so,” despite the fact that there have been reasonable counter-
arguments that question the assumptions that those formulas are based on (cf. Rigdon 2016).
Third, while E&R do not explicitly compare PLS-SEM to the best-known alternative, namely CB-SEM,
scholars interested in researching latent variables have few other options than CB-SEM, and sometimes
CB-SEM analyses do not work (e.g. models that don’t converge). We appreciate that E&R discuss
generalized structure component analysis (GSCA) as an alternative; perhaps a more in-depth comparison
between PLS-SEM and GSCA would have made a better topic, to inform IS researchers of viable
alternatives to PLS. That would have equally supported E&R’s intent of their article as stated in their
conclusion: “to help IS researchers remain current with important methodological developments and to
provide a sound foundation upon which to base their choice of statistical methods.”
Fourth, E&R take a rather hardline stance in their treatment of PLS, which we would argue contributes to
a polarization of the debate. We perceive E&R’s stance as negative (despite them denying it), and others
taking an opposite stance that we would characterize as, perhaps, too optimistic—as exemplified by Hair
et al.’s (2011) article entitled “PLS-SEM: Indeed A Silver Bullet.” We do not believe in silver bullets; in
statistical analysis, every methodological choice comes with affordances, but also at a cost: one has “to
pay the reaper” (Curran, 2003). We believe that taking hardline positions on these matters preempts a
more fruitful conversation. E&R were right to ask critical and important questions about a decade ago; it is
somewhat ironic that their initial critical perspective, which seemed to focus on discouraging scholars to
use PLS, has led to several improvements of PLS—clearly, their points of critique have been taken
seriously! However, we argue that a more nuanced conversational tone might be more useful to the
overall goal of understanding the limitations of PLS and offering solutions where possible.
1
To be clear, we do not suggest that IS researchers using PLS are not experts at what they do, but based on our review (Russo and
Stol, 2021) we did find variation in expertise that was exhibited in the various papers.
• “If a researcher uses PLS for prediction, the study should adequately justify and reflect this
motivation and assess out-of-sample prediction at the individual level” (Recommendation 8)
• “If a researcher uses PLS with dependent formative constructs, researchers should verify and
publish the statistical model (i.e., the equations) that is assumed and estimated to avoid any
confusion” (Recommendation 10)
• “PLS composites should be compared to unweighted composites to demonstrate any possible
advantage that the PLS composites might have” (Recommendation 13)
All of these suggested procedures are rather advanced steps and not straightforward to perform—this is
what we mean that E&R may be ‘blinded’ by their own expertise. These procedures go well beyond the
typical introductory textbooks on PLS, though we agree that some tools may provide better support for
some of these than others. For example, Recommendation 10 (listed above) suggests that the equations
of the statistical model be published; while this may be easier to do in an open source package that
requires explicit specification of a model, other popular tools that offer a graphical interface do not readily
generate these equations.
Then there is the issue of reviewers, who have the same responsibility of familiarizing themselves with
recent methodological advances. For example, CR and AVE statistics, as well as an exploratory factor
analysis (EFA) to inspect crossloadings, were used for decades for establishing discriminant validity
(Bagozzi and Yi, 1988; Fornell and Larcker, 1981). Indeed, E&R rightly point out that these measures
have weaknesses, and that the HTMT criterion would be better. Yet, reviewers who do not keep up to
date may simply request that authors report CR, AVE, and results of an EFA out of habit, unaware of their
shortcomings. Authors who no longer report these criteria, may simply throw their hands up and comply
with reviewers’ requests, no matter how unreasonable or inappropriate, simply to progress their paper in
the review process. Thus, we cannot ‘blame’ researchers for using outdated measures without also
requiring due diligence from editors handling such papers.
For many researchers, the recommendations and advice by E&R are unrealistic and hard to follow.2 The
use of HTMT is not unproblematic because, as E&R point out, “its use with PLSc presents two
challenges,” all the while E&R’s Recommendation 1 was to use PLSc. Other recommendations are so
stringent that, in effect, E&R discourage the use of PLS altogether.
2
In this respect, proper tool support is very important. While there are several commercial packages such as SmartPLS and
WarpPLS, we would argue that open source solutions may offer the best option to support transparency. One potential issue with
open source solutions is, however, the risk that packages disappear due to a lack of maintainers. This is what recently happened to
the plspm package for the R language.
argue represent these conceptual variables. Who is to say, then, that the common factor based proxy is
better than a composite-based one?
E&R also question whether the weighted indicator representation used in PLS is appropriate as there has
been no demonstration of its benefits over simple unweighted summed scales. In effect, what it comes
down to is how latent variables are represented. There are several ways to generate factor scores
(DiStefano et al., 2009); PLS weighted indicators model is another. Unweighted scores assume that all
indicators (items) contribute equally, or are equally important, which may be an unreasonable assumption.
It is very common in certain types of models within the common factor SEM framework to use average or
sum scores of a set of indicators. For example, latent growth models (Bollen and Curran, 2006), which are
implemented within the CB-SEM framework, require simple scores (as opposed to multiple indicator
common factors), as does moderation analysis. With several ways to represent a latent variable with a
single score (DiStefano et al., 2009; Skondral and Laake, 2001), one should wonder how much it matters
at all? E&R wonder why the generalized structure component analysis (GSCA) approach has not seen
more widespread adoption; we do not have the answer to that question. Henseler (2012), who noted that
GSCA is a reinvention of Glang’s (1988) work, pointed out that all software implementations of the GSCA
algorithm suffered from an error (Henseler, 2012, pp. 403); clearly, this would not help instill any
confidence in this approach.
It is in this context that we believe it is worth emphasizing that no singular study is sufficient to build
rigorous theory or provide evidence for proposed theories. Much research within the IS discipline, but also
in many other disciplines that use SEM, focuses on latent, unmeasurable variables. Clear examples within
the IS literature are trust and job satisfaction; these constitute feelings, perceptions, and opinions of
people, and are inherently hard to measure. As a scholarly community we should never rely on a single
study that investigates important relationships between such variables. Instead, we should focus on
conducting families of studies, ideally using a variety of methods. The issue of how precise or reliable
some of the parameter estimates really are loses importance because other studies may either confirm or
disconfirm such findings.
analysis methods using realistic research models, rather than models that were designed to highlight
potential issues.
Balancing the E&R’s aim to inform the IS community A more balanced and nuanced debate of evidence in
debate on PLS with updated guidelines is favor and against PLS-SEM would be welcome based on
commendable. However, in our view a fair discussion that includes all work that makes
treatment of recent methodological methodological advances. Extreme positions should be
advances is incomplete and somewhat prevented, or else a debate will not progress.
unbalanced.
Know Your E&R make important observations, but Some recommendations clearly target PLS-SEM users,
Audience many recommendations are hard to and offering further guidance to them is necessary,
implement for the average applied through editorials, tutorials, and textbooks for example.
scholar. Scholars, supervisors, editors Other recommendations propose rather technical
and reviewers all share a responsibility procedures, and we argue that the average applied
to remain informed of recent researcher is not readily equipped to perform these
methodological advances. Stating that without sufficient guidance. Other observations suggest a
the IS community has ‘bet the farm’ on “research roadmap” (see also our observations under the
using PLS-SEM to develop key theme “exceptional cases and flawed evidence”).
theories is hyperbolic.
Philosophical The way latent variables (theoretical Despite several debates around the use of PLS, the
and practical constructs) are represented in different various epistemological and ontological perspectives are
differences approaches (PLS-SEM, CB-SEM) is perhaps not appreciated by different scholars. Debates
different, and it is important to such as these certainly help to highlight and explicate the
recognize the underpinning different stances, but a more elaborate in-depth
epistemological and ontological discussion that presents an “objective” comparison is
foundations. Practical issues involve needed, illustrated with concrete examples. Practical
the correct modeling of theoretical guidelines that address various issues such as modeling
constructs that are not consistent with ‘formative’ constructs are needed. A more clear
the standard reflectively modeled understanding of when to use PLS-SEM or CB-SEM is
common factor approach, such as needed; current guidelines that are typically offered by
socioeconomic status. advocates of PLS-SEM do not offer insight as to why
PLS-SEM would be more appropriate under certain
circumstances.
Exceptional E&R claim that their critiques are Comparisons must be valid and fair. Studies should
cases and based on deductions and simulations. consider not only extreme or exceptional cases, but also
flawed Exceptional cases that highlight include analyses of ‘normal’ studies. Study designs
evidence problems with PLS-SEM are not demonstrating problems should be sound. Potential
necessarily representative of general barriers to this are the fact that this work may be tedious,
use of PLS-SEM. As some scholars boring, and ‘high risk’, meaning that this type of work can
have shown, some simulation studies be very hard and may not result in publications in the top
highlighting ‘problem’ were flawed. venues; this is an inhibitor to junior scholars who do not
see this as a “career building” activity. Conducting several
types of replication studies to investigate foundational
studies is a potential avenue for future work.
Acknowledgments
We thank the Editor Dr John Venable for the invitation and constructive feedback that has led to a more
precise articulation of our points. This work was partially funded by the Science Foundation Ireland grants
15/SIRG/3293 and 13/RC/2094_P2.
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