Partial least squares structural equation modeling usage in production engineering research: a systematic literature review

Abstract Despite the increasing usage of Partial Least Squares Structural Equation Modeling (PLS-SEM) by the scientific community, there is a series of misconceptions and incorrect usage of the technique reported in the literature. This study conducted a critical review of PLS-SEM usage on Production Engineering Research in Brazil and provided guidelines for its correct usage. A systematic literature review approach was adopted, focusing on papers published in the main Production Engineering Research outlets in Brazil. In total, 49 papers were carefully analyzed by the authors. The main issues identified while reviewing the selected papers can be categorized into four main groups: conceptual design; model operationalization; data analysis; and presentation of results. The study also suggests that realizing the full potential provided by PLS-SEM depends on a series of proper decisions made at the early stages of the research process. The paper concludes with guidelines for researchers to avoid the most common issues associated with using this technique in Production Engineering research.