Partial Least Squares Structural Equation Modeling Research Articles

Retirement satisfaction as a quantified outcome of superior financial literacy: An empirical investigation

The purpose of the study is to create a viable and customised retirement planning system with financial literacy as the driver to achieve retirement adequacy and retirement satisfaction, taking into account the increasing financial needs of retirees. Perception regarding retirement choices necessitates sufficient self-efficacy to implement retirement portfolio decisions. Despite transformation in the way retirement is looked at, planning for retirement has taken a backward stride as individuals concentrate on their present needs rather than a holistic approach to life. The study implemented an online self-administered questionnaire for 770 participants using convenience sampling from India’s two major IT hubs, Bangalore and Chennai. The data samples were analysed using Partial Least Squares Structural Equation Model (PLS-SEM). The study evidenced a strong association between superior financial literacy and retirement planning and identified five essential financial behaviours, such as savings attitude, borrowing pattern, investment decision, insurance allocation, and spending behaviour, that strongly influence individual retirement planning. These behaviours lay the foundation for retirement readiness, lowered debt anxiety, and greater risk-bearing capacity. The results further reveal that individual’s satisfaction levels are significantly influenced by retirement adequacy. Therefore, it is imperative to formulate a well-structured retirement plan to attain retirement adequacy and satisfaction.

ANALYSIS OF FACTORS INFLUENCING INTENTION IN USING ACCOUNTING INFORMATION SYSTEMS FOR REVENUE AND ZAKAT MANAGEMENT BY MICRO, SMALL AND MEDIUM ENTERPRISES IN E-COMMERCE

Accounting information systems (AISs) have become indispensable enterprise management tools, serving as a vital resource for promoting administrative and financial processes, facilitating decision-making, and improving overall performance. Apart from business, AISs can also be developed as zakat for sharia. In this regard, AIS plays a role in calculating zakat, making zakat payment decisions, and assisting managers in zakat allocation. This function is very beneficial for business actors, especially MSME actors. The existence of AISs can make it easier for MSMEs to manage their revenue and zakat. So, MSMEs need to be able to adopt AISs. Unfortunately, research regarding the acceptability of AIS adoption for MSMEs has not yet been conducted. Therefore, this research examines the factors of acceptance of AISs by e-commerce actors from MSMEs. By using the elements in the Technology Acceptance Model (TAM), such as Perceived ease of use (PEU) and perceived usefulness (PU) through quantitative methods and Partial Least Square Structural Equation Model (PLS-SEM) analysis, the results of data analysis in this study show that the influence of PEU and PU on IUAISs is positive and significant. This shows that IUAISs are influenced by two main variables from TAM (PEU and PU). Based on the results, this study implies that MSMEs that successfully adopt Accounting Information Systems (AISs) for revenue and zakat management can improve their administrative and financial efficiency, emphasizing the importance of understanding the factors influencing AIS acceptance among MSMEs.

ESM Adoption for Marketing Purposes in Organizations: The TOE Framework

This research, utilizing the technology-organization-­environment (TOE) framework, aimed to examine the roles of technological competence, top management support, coercive pressures, normative pressures, and mimetic pressures in the adoption of enterprise social media (ESM) for marketing purposes by organizations, and ultimately, in facilitating their relationship marketing practices. From 452 responses collected via an online survey across five organizations using ESM for marketing in Iran, 400 valid data points were analyzed using partial least squares structural equation modeling (PLS-SEM). The findings revealed that technological competence, top management support, and mimetic pressures positively influence ESM implementation for marketing purposes. However, coercive and normative pressures were found to have no significant impact on ESM adoption for this purpose. Additionally, the study demonstrated that ESM implementation for marketing significantly impacts all components of relationship marketing practices. To the best of our knowledge, this is among the few studies addressing ESM adoption by organizations for marketing and external communications. Moreover, this study is the first to extend the advanced TOE framework to the domain of ESM implementation for marketing purposes.

The role of digital marketing and electronic word of mouth in restoring tourism visits after the covid-19 pandemic to the mangrove ecotourism Kampung Blekok, Situbondo

Introduction: The presence of ecotourism is more oriented toward environmental conservation, utilization of natural resources, cultural preservation, and economic benefits. However, post-COVID-19 pandemic tourist visits to the Kampung Blekok mangrove ecotourism have not recovered, and the condition of the ecotourism is not maintained and is damaged. This research aims to analyze the influence of digital marketing, electronic word of mouth, and interest in visiting on the decision to visit the Kampung Blekok mangrove ecotourism. Methods: Data collection on ecotourism behavior was obtained from 172 respondents using a questionnaire. The data analysis technique used was Structural Equation Modeling Partial Least Squares (SEM-PLS) with WarpPLS version 8.0. Results: The results of the research analysis show that digital marketing and eWOM produce a positive and significant influence on visit intention and decision. The mediating role of visiting interest in the relationship between digital marketing and eWOM on visiting decisions is partial. Mangrove ecotourism managers in Kampung Blekok can optimize digital marketing and eWOM strategies, and adapt to current tourism situations and trends. Conclusion: Digital marketing and eWOM are important in shaping visit interest and determining tourist decisions. Changes in tourist behavior using digital media can be a tool for progressing the ecotourism business by increasing tourists' visiting decisions.

Awareness advertising influence on consumers buying intention: Exploring attitude as a mediating factor

This study investigates the intricate relationship between awareness advertising and buying intention among Iraqi grocery shoppers, exploring the mediating role of consumer attitude. Employing a quantitative approach, the authors surveyed 300 shoppers. Using a random sampling technique. To ensure rigor and validity, the authors rigorously analyzed the relationships using partial least squares structural equation modelling (PLS-SEM) based on 288 valid responses. The findings reveal that awareness advertising significantly impacts buying intention, mediated by consumer attitude. These insights offer valuable management implications for product marketers. Sufficient brand awareness attracts consumer attention, shapes positive attitudes, and ultimately drives purchase decisions. This study further validates the theoretical model of consumer response by empirically establishing consumer attitude as a central intermediary between awareness advertising and buying intention within the Iraqi market context.

Memorable experiences and their influential factors: an importance-performance analysis of a cultural event

ABSTRACT This study aimed to verify the underlying influential factors of cultural event attributes and proposed a structural model to examine the event dimensions that influence attendees’ memorable experiences and subsequent life satisfaction and sharing experiences. Partial least squares structural equation modelling (PLS-SEM) was used to analyse the proposed conceptual model with data obtained from 756 respondents. The results indicated that activities, uniqueness, distinctiveness and authenticity had strong and positive effects on memorable experiences, which, in turn, impacted life satisfaction and sharing experiences via social media. An in-depth examination through importance – performance map analysis (IPMA) revealed the prioritisation of crucial event dimensional attributes.

Dampak Kinerja Keuangan terhadap Profitabilitas Bank Syariah: Analisis Perbandingan Bank Syariah di Indonesia dan Malaysia

This study aims to analyze the effect of financial performance on the profitability of Islamic banks in Indonesia and Malaysia, using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach and secondary data from 2019 to 2023. The results showed that asset quality, as measured by Net Performing Financing, proved to have a significant influence on profitability, with the coefficient value of Islamic banks in Indonesia is 0.035 and in Malaysia is 0.05. While other factors do not have a significant effect on profitability. This shows that both Islamic banks are very vulnerable to the quality of financing. Based on the results of this study, it is expected that stakeholders, such as Islamic banks and the government, can take concrete steps to improve the profitability and stability of the Islamic banking sector. Islamic banks are expected to focus on improving asset quality, managing credit risk better, and developing effective risk management strategies. Keywords: Financial performance; Profitability; Islamic banks; Indonesia; Malaysia; PLS-SEM.

Delighting customers: Evaluating service quality and customer satisfaction of self-checkout users in sports retail

Digitalization has transformed dynamics across all fields, and technology has completely changed the customer experience. One prominently utilized technology in offline retail is self-checkout services. The present study intends to investigate the attributes that influence people to use self-checkout services and assess their impact on service quality and customer satisfaction. Drawn from Dabholkar’s attribute-based model, the study employs a positivist approach to test the conceptual framework. After the preliminary survey of 330 respondents, it identified ninety-nine consumers who had used the self-service check-out facility. The data collected were analyzed using a multi-variate technique – Partial Least Squares Structural Equation Modeling (PLS-SEM) – owing to the small sample size requirement. All independent variables taken for the study positively affect the service quality. Customer perception of control, ease of use, reliability, enjoyment, speed, adventure, and openness positively affect service quality. It was noted that ease of use, with a variance value of 2.451, and openness to experience, with a variance value of 2.437, show the importance of determining independent variables with service quality. The study findings reported that service quality is primarily influenced by ease of use, enjoyment, and openness to experience. It underlines that some retail customers will likely feel frustrated rather than enjoy the self-service technology, perceiving it as less reliable. The study suggests incorporating openness to experience and adventure shopping in retail outlets that can enhance consumer satisfaction and loyalty. Adopting an immersive and interactive shopping experience will ultimately improve the perception of service quality and customer happiness.

Development of a measurement instrument for pedestrians’ initial trust in automated vehicles

Considering that a significant portion of the current pedestrian population has limited exposure to automated vehicles (AVs), it is crucial to have a reliable instrument for assessing pedestrians’ initial trust in AVs. Using a survey of 436 pedestrians, this study developed and validated a PITQA (Pedestrians’ Initial Trust Questionnaire for AVs) scale using partial least squares structural equation modeling (PLS-SEM). The proposed scale will be valuable in monitoring the progression of trust over time and considering trust-related factors during the design process. The results revealed that seven key constructs significantly contribute to predicting initial trust between pedestrians and AVs. These constructs include propensity to trust, perceived statistical reliability, dependability and competence, perceived predictability, familiarity, authority/subversion, care/harm, and sanctity/degradation. These shed light on how the trust propensity of individuals, different trust/trustworthiness attributes might constitute different aspects of initial trust in the pedestrian-AV context. The developed scale can be a potentially useful tool for future research endeavors concerning trust calibration and the design of AVs specifically tailored for vulnerable road users.

The mediation effect of supervisor support and total rewards on the relationship between flexible work arrangements and turnover intentions in Gen Z

Purpose Flexibility in the workplace is increasingly considered an important aspect of human resource strategy aimed at attracting and retaining a high-quality workforce. The purpose of this study is to explore the direct relationships between both employee- and employer-centered flexible work arrangements and turnover intentions, specifically focusing on Generation Z employees. In addition, this study also examines the mediating role of supervisor support and total rewards in these relationships. Design/methodology/approach This study used a quantitative research design using a cross-sectional survey method to gather data from employees born from 1995 across three industries – logistics, retail sales, and manufacturing. Partial least-squares structural equation modeling was used to analyze the data. The survey was conducted online, ensuring a diverse geographical spread and adherence to the representativeness of Generation Z within these sectors. Findings Contrary to existing literature, the findings reveal no direct correlation between flexible working arrangements (FWAs) and turnover intentions in this demographic. Instead, the results highlight the significant mediating roles of perceived supervisor support and total rewards. Specifically, these factors were found to influence turnover intentions in relation to the availability of employee-centered FWAs. The findings provide theoretical and practical implications, suggesting an adaptation of human resource strategies to better align with the preferences and expectations of Generation Z in the workplace. Originality/value In contrast to existing literature, this study examines the relationship between the availability of two different types of flexible work arrangements (employee- and employer-centered) and turnover intentions, specifically among Generation Z employees. In addition, this research introduces mediation analysis to investigate the roles of perceived supervisor support and total rewards – constructs that have been rarely considered in the context of these relationships.

Exploring the antecedent factors of continuous intention to use mobile money: insights from emerging markets

Purpose The purpose of this study is to examine the factors that may have an influence on the continuous intention to use mobile money as one of the Financial Technology (FinTech) products beyond the COVID-19 pandemic lockdown period. Design/methodology/approach This study has empirically tested the expanded post-acceptance model (Extend-PAM) and the expectation-confirmation model (ECM) to explain the mobile money adoption in Jordan. Data collected were analyzed through partial least squares–structural equation modeling (PLS-SEM). Findings The results mainly showed that the quality of administrative services and trust significantly impact confirmation and perceived usefulness. In addition, perceived security and knowledge of mobile money as one of the FinTech services significantly influence users’ confirmation and perceived usefulness. Also, usefulness and satisfaction influence continuous intention. Significant relationships were noted among confirmation, perceived usefulness, satisfaction and continuous intention to use mobile money. Originality/value This paper integrates two key theories: the expanded post-acceptance model (Extend-PAM) and the expectation-confirmation model (ECM) in the post-adoption behavior of mobile money. Therefore, this study attempts to fill a literature gap by examining the antecedent factors that influence the continuous intention to use mobile money services in the post-consumption stage.

Do green banking practices improve the sustainability performance of banking institutions? The mediating role of green finance

Purpose This study aims to examine the mediating role of green finance in the relationship between green banking practices and the sustainability performance of banking institutions in developing economies. Design/methodology/approach The authors performed an empirical investigation by applying the “partial least squares structural equation modeling (PLS-SEM)” based on a representative sample of 414 bank employees working in the National Capital Region, India. Findings The study’s outcome confirms that employee, top-management, operation and policy related practices substantially influence green finance and banks’ sustainability performance. On the contrary, customer related practices insignificantly influence banks’ sustainability performance. Further, green finance substantially influences the sustainability performance of banking institutions. Practical implications This study shed light on green banking practices that can assist in achieving the vision of the “Clean India Mission” of the Indian government. In addition, it encourages policymakers and bank managers to fulfill their social responsibility by engaging employees and customers in cleaner operations to promote banks’ sustainability performance. Originality/value This is ground-breaking research that enriches the understanding of green banking practices and green finance by providing a novel theoretical framework concerning the sustainability performance of banking institutions. Theoretically, this paper also broadens the scope of corporate social responsibility literature by applying the resource-based view theory in finance and banking.

NORMA SUBYEKTIF DAN SELF-EFFICACY DALAM PENERIMAAN APLIKASI REKSA DANA DAN SAHAM

Mutual funds and shares are investment elements that are more volatile compared to gold, but in the long term they are quite profitable elements. This can be seen during the COVID-19 pandemic, the Russian-Ukrainian war crisis, and the bankruptcy of a large bank in America, this investment element still provides profits. The financial technology industry also provides various service applications on mobile phones or smartphones that make it easier for people to invest in mutual funds and shares. This research analyzes the determinants of Indonesian society's acceptance of stock mutual fund applications using the Technology Acceptance Model (TAM) and adding two external variables, namely subjective norms and self-efficacy. This research uses Structural Equation Model-Partial Least Square (SEM-PLS) to test the hypothesis. The results show that all TAM variables and subjective norms have an influence, but self-efficacy does not influence interest in using mutual fund and stock applications. In order to increase public acceptance of mutual fund and stock investment applications, and then interest in using them, service providers should improve the ease of operation and usefulness of their applications. Efforts should also be made to encourage people to recommend each other to invest through this application.

Understanding digital engagement: factors influencing awareness and satisfaction of digital transformation

In an era marked by rapid digital transformation, understanding the factors that influence digital engagement is crucial for bridging the digital divide. This study aims to explore the impact of individual factors such as networking motive, social media use, content service usage, and economic activity on digital transformation awareness and satisfaction. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data from 7,000 respondents of the National Information Society Agency (NIA)'s 2022 Digital Divide Survey, this research provides empirical insights into the dynamics of digital engagement. The findings reveal that networking motive significantly predicts social media use, which in turn slightly enhances digital transformation awareness but not satisfaction. Conversely, economic activity positively influences both awareness and satisfaction with digital transformation, underscoring the tangible benefits of digital economic engagement. Life service utilization emerged as a crucial factor, significantly impacting both awareness and satisfaction. These results offer critical implications for policymakers, educators, and digital platform developers, suggesting the need for targeted strategies to enhance digital literacy, promote inclusive digital services, and foster economic opportunities in the digital domain.

Determining factors influencing flood preparedness among citizens in Jakarta: A protection motivation theory approach

The Jakarta Metropolitan Area is one of the cities heavily affected by floods in Asia. Effective disaster risk reduction strategies require deep understanding of what motivates its citizens towards preparedness and mitigation actions. This study aimed to discern these motivating factors among Jakarta's residents through the Protection Motivation Theory (PMT) approach. Through an online survey, 304 participants provided insights into how the extended PMT factors shape their Protection Motivation (PM) towards flood preparedness. A total of nine (9) variables and 41 constructs were considered in this study. PMT factors were comprised of PM, Perceived Severity (PS), Perceived Vulnerability (PV), Response Efficacy (RE), and Perceived Self-Efficacy (SE) along with additional factors such as Media (M), Government Preventive Actions (GA), Flood Experience (FE), and Geographical Perspectives (GP). Partial Least Square Structural Equation Modeling (PLS-SEM) revealed that SE had the most substantial impact on influencing PM (β = 0.522) followed by PV, PS, and RE. The results also showed the significance of M and GA to both SE and RE. Meanwhile, FE illustrates positive impact to both PV and PS. Interestingly, GP was found to be only significant to PV and not to PS. External factors M and GA demonstrated a significant indirect effect on PM through SE, whereas GP exhibited a significant indirect effect on PM through PV. These findings provide actionable insights for policymakers and disaster management practitioners, emphasizing the power of media and the need for comprehensive strategies that address both the psychological and practical aspects of flood disaster readiness in Jakarta and potentially other flood-prone regions.

Green practices and economic performance: Mediating role of green innovation in Ethiopian leather, textile, and garment industries—An integrated PLS-SEM analysis

Incorporating green issues into business operations is indisputable, as this is mandatory in today's environmental era. The purpose of this study was to explore the structural link between green practices such as green manufacturing, green marketing orientation, green human resource management, green investment, and the economic performance of textile and leather firms in Ethiopia through green innovation. This study was carried out utilizing a quantitative method, and 201 surveys were used to gather the data from the top managers and general managers of medium and large textile and leather firms in Ethiopia using stratified random sampling. To test the hypothesis, partial least squares structural equation modeling (PLS-SEM) was used. The results of this study demonstrate that green practices, specifically green manufacturing practices (GMP), green marketing orientation (GMO), and green investment (GIV), have a positive and substantial contribution to firms' economic performance (EP) and green innovation (GIN). However, the advancement of GIN is not significantly affected by the adoption of sustainable human resources management (HRM). Moreover, green innovation facilitates the connection between economic success, GIV, and GMO. Nonetheless, when it comes to the relationship between GHRM, green manufacturing practices, and economic success, green innovation plays no mediating function. According to this research, a company's management ought to strengthen its green practices as lower expenses would boost its economic outcome.

Determinants of consumer intention to use smart food lockers during COVID-19: A multi-method approach

During the COVID-19 pandemic, increased demand for contactless services has triggered the restaurant industry to adopt smart food lockers. Based on service quality theory, we investigated factors associated with consumer intention to use smart food lockers. We collected 222 valid questionnaires for the study and analyzed the data using the partial least squares structural equation modelling (PLS-SEM) and the fuzzy-set qualitative comparative analysis (fsQCA) method. Results of the PLS-SEM analysis show that food safety, convenience, perceived security, perceived control, and perceived time pressure significantly impact consumer intention to use smart food lockers. An MGA analysis shows that perceived protection during COVID-19 enhances the positive relationship between food safety and intention to use smart food lockers. For a more comprehensive view of the study’s findings, the fsQCA provides five scenarios that lead to high user willingness to use smart food lockers. This study provides practical insights into platforms and governments.

Modeling Workplace Well-Being Factors in Infrastructure Construction Projects: PLS-SEM Approach

Working at construction sites can harm individuals’ health and well-being. However, stakeholders often focus on improving health while discounting well-being. Establishing a better workplace environment can improve workplace well-being. Therefore, this study aims to investigate the factors influencing workplace well-being in infrastructure construction projects. To achieve this aim, the study objectives are to (1) identify the critical factors influencing workplace well-being in infrastructure construction projects; (2) develop an interrelationship model between underlying constructs of the factors; and (3) assess the influence of the underlying constructs on workplace well-being in infrastructure construction projects. First, a list of factors influencing workplace well-being was established using data from a systematic literature review and semi-structured interviews. Then, a survey was developed using the list of factors and distributed to infrastructure construction practitioners. In total, 124 responses were retrieved and analyzed using normalized mean analysis, exploratory factor analysis (EFA) and partial least square structural equation modeling (PLS-SEM). The analyses reveal that the critical factors include workload, salary package, the timeline of salary payment, working hours, planning of the project, insurance for construction workers, workers’ welfare and project progress. Furthermore, the underlying constructs are physical factors and psychosocial factors. Finally, both physical and psychosocial factors are found to significantly influence workplace well-being in infrastructure construction projects. Focusing solely on physical factors may not sufficiently enhance workplace well-being in construction projects, as there are also non-visible factors, such as psychosocial factors. Thus, exploring the interplay between visible and non-visible factors and their influence on workplace well-being in construction projects is crucial. Nevertheless, the findings have several limitations, including using data from a single country and non-hands-on construction practitioners, as well as the underlying constructs being derived solely using statistical methods. Still, the study is original in its focus on modeling the relationship between the factors influencing workplace well-being within the context of infrastructure construction projects. In other words, this study differs from prior research by specifically modeling the factors that influence well-being in infrastructure construction projects.

Digitalization Adoption Barriers in the Context of Sustainability and Operational Excellence: Implications for SMEs

In the global landscape, small and medium enterprises (SMEs) are increasingly enhancing their adaptability to capitalize on evolving market prospects. Industry 4.0 technologies, with their primary focus on improving operational excellence, hold immense potential for contributing to the sustainability of SMEs. These technologies optimize resources, repurpose materials, enable remote working, and minimize waste, thereby fostering a resilient business environment. In the current study, the authors have utilized the Technology, Organization, and Environment (TOE) framework to conduct a comprehensive literature review and identified the key barriers. Research questions and hypothesis were formulated. A questionnaire-based survey was conducted, involving 205 discrete manufacturing SMEs. The authors evaluated the proposed hypotheses using the Partial Least Square Structural Equation Modeling (PLS-SEM) technique to gain insights into their causal relationships. Identified barriers are categorized as adoption barriers, lack of in-house technology skills, readiness barriers, and adverse operational realities. The authors observed that lack of strategic planning, inadequate focus on processes and performance monitoring results in barriers that hinder the digitalization of SMEs. Further results anticipate that operational realities have a direct relationship with readiness barriers of SMEs. This implies that challenges such as workforce turnover, pricing pressures, last-minute design changes, overdue payments, and outdated infrastructure can lead to operational difficulties, resulting in suboptimal strategies, business plans, and ineffective processes. The findings of the current study also imply that implementing shopfloor industrial Internet of things (IIoT) to track performance and interventions through digital definitions of products and manufacturing can further strengthen processes. By incorporating the findings from this study, SME stakeholders can develop strategies to achieve operational excellence while fulfilling their sustainability goals.

Exploring the roles of lean design and operations in improving construction logistics collaboration and supply chain performance

ABSTRACT Previous studies have conceptually mentioned the important roles of lean practices (LP) (in design, planning, operations, and safety) in improving logistics collaboration (LC) and construction supply chain performance (SCP). However, there is a lack of studies exploring their relationships in a structural model. Thus, this study is conducted to provide theoretical insights into how LC and construction SCP can be improved by considering LP. The Partial Least Squares Structural Equation Modelling (PLS-SEM) results show that LP in design and planning has positive impacts on internal LC and SCP while LP in operations and safety has significant impacts on internal and external LC. The results also reveal that internal and external LC positively impact the construction SCP. Based on the research results, we also propose managerial implications for construction managers to improve SCP.