Description
PLS Pluses and Minuses Abstract: In this paper we ask three questions. Do PLS path estimates compensate for measurement error? Do they capitalize on chance? And is PLS able to more accurately weight measurement indicators so as to make path estimations more accurate? The evidence is quite convincing that PLS path estimates do have all three of these characteristics. Our analysis suggests, however, that measurement error has by far the largest impact, followed by capitalization on chance, with better weighting of indicators having the smallest influence. MIS researchers need to consider how to respond to these findings._x000D_ _x000D_
Recommended Citation
Goodhue, Dale; Lewis, William; and Thompson, Ron, "PLS Pluses and Minuses_x000D_
In Path Estimation Accuracy" (2015). AMCIS 2015 Proceedings. 3.
https://aisel.aisnet.org/amcis2015/ISPhil/GeneralPresentations/3
PLS Pluses and Minuses_x000D_ In Path Estimation Accuracy
PLS Pluses and Minuses Abstract: In this paper we ask three questions. Do PLS path estimates compensate for measurement error? Do they capitalize on chance? And is PLS able to more accurately weight measurement indicators so as to make path estimations more accurate? The evidence is quite convincing that PLS path estimates do have all three of these characteristics. Our analysis suggests, however, that measurement error has by far the largest impact, followed by capitalization on chance, with better weighting of indicators having the smallest influence. MIS researchers need to consider how to respond to these findings._x000D_ _x000D_