Commentary on Rethinking PLS SEM in Business Research Beyond the Fit

Abstract The widespread adoption of Partial Least Squares Structural Equation Modelling (PLS SEM) in business research has led to both innovation and confusion. While the method’s strengths in handling small samples, formative constructs, and complex models are undeniable, its misuse in confirmatory settings has raised serious concerns. This article challenges the prevailing focus on model fit and statistical convenience, calling instead for a reorientation toward predictive relevance, theoretical grounding, and methodological alignment. By unpacking the assumptions, advantages, and limits of PLS SEM, the discussion offers a roadmap for its responsible and effective use in contemporary business scholarship. Keywords. SEM, Business Research, Predictive Modelling, Model Evaluation, Structural Equation Modelling, Research Methodology.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-06-27
DOI
https://doi.org/10.5281/zenodo.15753990
Primary Topic
Organizational Leadership and Management Strategies
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Commentary on Rethinking PLS SEM in Business Research Beyond the Fit

Zenodo (CERN European Organization for Nuclear Research)
Organizational Leadership and Management Strategies
article

Commentary on Rethinking PLS SEM in Business Research Beyond the Fit

article en

Abstract

Abstract The widespread adoption of Partial Least Squares Structural Equation Modelling (PLS SEM) in business research has led to both innovation and confusion. While the method’s strengths in handling small samples, formative constructs, and complex models are undeniable, its misuse in confirmatory settings has raised serious concerns. This article challenges the prevailing focus on model fit and statistical convenience, calling instead for a reorientation toward predictive relevance, theoretical grounding, and methodological alignment. By unpacking the assumptions, advantages, and limits of PLS SEM, the discussion offers a roadmap for its responsible and effective use in contemporary business scholarship. Keywords. SEM, Business Research, Predictive Modelling, Model Evaluation, Structural Equation Modelling, Research Methodology.

Zenodo (CERN European Organization for Nuclear Research)
Industry, innovation and infrastructure
Openalex Percentile: Top 43%
Organizational Leadership and Management Strategies
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.