Advancing Methodological Clarity: A Review on the Problems and Procedures of PLS-SEM in Business Research as Discussed by Putra (2022)

Abstract This review critically examines the article by Putra (2022), which addresses common problems, misconceptions, and recommended procedures in the application of Partial Least Squares Structural Equation Modeling (PLS-SEM) within business research. Putra offers a comprehensive discussion on both theoretical and practical aspects, highlighting the persistent misapplication of PLS-SEM for confirmatory purposes and the frequent neglect of its underlying methodological assumptions. By systematically outlining key issues—such as sample size justification, model fit evaluation, and discriminant validity testing—Putra’s work clarifies when and how PLS-SEM should be appropriately implemented. This review evaluates the strengths and limitations of Putra’s analysis, situates it within the broader methodological literature, and discusses its practical relevance for applied researchers. The paper concludes that while Putra (2022) advances methodological clarity, ongoing dialogue and education are still needed to ensure rigorous and context-appropriate use of PLS-SEM in business research. Keywords: Partial Least Squares Structural Equation Modeling (PLS-SEM); business research methods; measurement model; structural equation modeling; methodological rigour; model validity; SmartPLS; reflective construct; formative construct; research methodology; best practices.