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PLS-SEM and reflective constructs: A response to recent criticism and a constructive path forward

Business

PLS-SEM and reflective constructs: A response to recent criticism and a constructive path forward

P. Guenther, M. Guenther, et al.

This article confronts the misconceptions surrounding reflective construct measurement in PLS-SEM, arguing that such models accurately represent theoretically grounded constructs. The research, conducted by Peter Guenther, Miriam Guenther, Christian M. Ringle, Ghasem Zaefarian, and Severina Cartwright, emphasizes the value of a multimethod approach in structural equation modeling to leverage diverse strengths instead of fostering competition among methods.... show more
Abstract
This article addresses criticisms asserting that reflective construct measurement and its associated evaluation criteria are unsuitable for partial least squares structural equation modeling (PLS-SEM). More specifically, critics contend that reflective measurement models correspond exclusively to common factor models, a premise that is both inaccurate and misleading. Reflective measurement models represent theoretically grounded and conceptualized constructs. Statistical methods such as common factor model estimation, composite model estimation, and sum score regression enable researchers to estimate method-specific proxies that serve as approximations for theoretically established conceptual constructs in empirical research. These proxies vary depending on the statistical models and assumptions inherent to each method. In this context, it is important to highlight that the use of reflective evaluation criteria is not restricted to common factor models. When applied to composite model estimation, it does not compromise the validity of the results. Moreover, this article advocates for embracing the complementary strengths of diverse SEM methods within a multimethod approach, rather than positioning one method in opposition to another. We believe that this contribution provides critical insights and guidance, fostering advancements in SEM methodology, and its practical applications.
Publisher
Industrial Marketing Management
Published On
May 19, 2025
Authors
Peter Guenther, Miriam Guenther, Christian M. Ringle, Ghasem Zaefarian, Severina Cartwright
Tags
reflective construct measurement
PLS-SEM
common factor models
composite model estimation
multimethod approach
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