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.