The Use of Partial Least Squares Structural Equation Modeling in Strategic Management Research: A Review of Past Practices and Recommendations for Future Applications

Abstract

Every discipline needs to frequently review the use of multivariate analysis methods to ensure rigorous research and publications. Even though partial least squares structural equation modeling (PLS-SEM) is frequently used for studies in strategic management, this kind of assessment has only been conducted by Hulland (1999) for four studies and a limited number of criteria. This article analyzes the use of PLS-SEM in thirty-seven studies that have been published in eight leading management journals for dozens of relevant criteria, including reasons for using PLS-SEM, data characteristics, model characteristics, model evaluation and reporting. Our results reveal several problematic aspects of PLS-SEM use in strategic management research, but also substantiate some improvement over time. We find that researchers still often do not fully make use of the method's capabilities, sometimes even misapplying it. Our review of PLS-SEM applications and recommendations on how to improve the use of the method are important to disseminate rigorous research and publication practices in the strategic management discipline.