The Use of Partial Least Squares Structural Equation Modeling and Complementary Methods in International Management Research

Abstract

Research in international business and management (IM) is highly complex, contextual, and spans various subfields and related theoretical lenses. These characteristics pose research challenges that require utilizing sophisticated research designs and methodologies. This paper and our focused issue on ‘The use of partial least squares structural equation modeling (PLS-SEM) and complementary methods in IM research’ further clarify whether and how researchers using PLS-SEM can address (some of) the challenges in IM research. We explain how researchers can benefit from the (advanced) capabilities that PLS-SEM offers; either as a stand-alone method or in triangulation efforts that leverage complementary approaches. In addition, we review the IM literature for PLS-SEM applications and evaluate whether and how researchers are already using these approaches. We identify some room for improvement when it comes to the application of both more advanced PLS-SEM capabilities and the triangulation of PLS-SEM with qualitative data analyses, and techniques such as fuzzy set qualitative comparative analyses and necessary condition analyses. For better guidance, we refer to PLS-SEM application examples in which the methodological advances are used.