Choosing PLS path modeling as analytical method in European management research: A realist perspective

Rigdon, Edward E.

doi:10.1016/j.emj.2016.05.006

Cited by 476 publications

(384 citation statements)

References 43 publications

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“…More specifically, SmartPLS 3 [116,117] was used to estimate the research model (for detailed reasons of why and when to use PLS-SEM, see for example, Richter, Cepeda, Roldán, & Ringle [118]). Despite a surprising level of animosity towards PLS-SEM [118][119][120][121], PLS-SEM has been widely accepted by the scholarly community, including authors, reviewers, and editors [122][123][124][125]. The following points summarize why this study adopted PLS-SEM instead of Linear structural relations (LISREL) or Analysis of a moment structures (AMOS) as more suitable statistical techniques: (1) the structural model is complex, and contains four series of dependent relationships [118,126]; (2) the research objective of the structural model is prediction oriented, and explaining the variance in key target constructs [126,127]; (3) this study analyzes the relationships between managerial capability, adaptive capability, and organizational innovation; which is being considered in the initial stages of theory development, therefore motivated us to investigate the related phenomena in this emerging area [118]; (4) the sample size (n = 210) is also believed to be relatively small [127], finally; (5) this study also takes advantage of PLS-SEM in terms of its less rigorous requirements for restrictive assumptions, which motivates researchers to develop and estimate such models through enabling them to avoid additional limiting constraints [117,128].…”

Section: Empirical Results and Analysismentioning

confidence: 99%

The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach

2017

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Abstract:The aim of this study is to empirically explore and propose a rigorous model for the positive impact of managerial capability (in terms of decision-making, management style, people development, and succession planning) and adaptive capability (in terms of horizon scanning, change management, and resilience) on organizational innovation in the context of small and medium-sized enterprises (SMEs). The study uses partial least squares structural equation modeling (PLS-SEM) to test the model hypotheses, and importance-performance matrix analysis (IPMA) to provide information regarding the significance and relevance of the dimensions of managerial and adaptive capability in explaining organizational innovation in the proposed model. The empirical data is gathered through questionnaires from 210 SMEs. The results show a strong and significant relationship between managerial capability, adaptive capability, and organizational innovation. This study found that all of the dimensions of managerial capability and adaptive capability help to develop and improve the performance of organizational innovation in SMEs. The study concludes with a comprehensive discussion of the research limitations, and provides suggestions for future research.

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Section: Empirical Results and Analysismentioning

confidence: 99%

The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach

2017

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“…First, we had a composite measurement model. Both theoretical studies [97][98][99] and empirical simulation studies [100,101] recommend and support the use of PLS for composite models. Second, as per Chin's [102] indications, we used PLS because we employed latent variable scores in subsequent analysis for modeling a second-order multidimensional construct, applying the higher-order component two-stage approach [103].…”

Section: Discussionmentioning

confidence: 99%

The Effect of Absorptive Capacity on Green Customer Capital under an Organizational Unlearning Context

et al. 2018

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Environmental management is becoming increasingly important within organizations and forms an essential part of their strategies. As customers are more concerned with the care of the environment, companies are required to be more aware of their actions. Consequently, companies must ignore their historical mindsets and assumptions to be able to adopt green-oriented practices and processes. Our specific research questions are: (i) How can firms become (more) green-oriented? and (ii) how can knowledge-based organizational capabilities drive this shift into greener companies, which may enhance green customer capital? The research model describes how the complementary roles of absorptive capacity (direct effect) and the fostering of an organizational unlearning context (moderating effect) affects green customer capital within the Spanish automotive component manufacturing sector. Empirical results reveal that to create green customer capital, companies should absorb new knowledge and build a context of organizational unlearning. In today's competitive environment, knowledge rapidly becomes obsolete, so companies need to encourage unlearning to make space for new knowledge that meets environmental needs and keeps pace with changing customer preferences. The research hypotheses were tested using partial least squares (PLS) path-modeling.

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“…PLS was therefore used to assess the measurement model-the reliability and validity of the constructs' measures-and to estimate the structural model-the relationships modeled between constructs. The use of PLS is justified by the following reasons from [61]: (i) the research model has reflective variables that are used to define a state where perceived variables are equally dependent upon another variable which is not itself observed. As the model has reflective variables they will be analyzed using Mode A consistent; (ii) the research model uses non-normal data; and (iii) the study utilizes an exploratory analysis.…”

Section: Discussionmentioning

confidence: 99%

Potential and Realized Absorptive Capacity as Complementary Drivers of Green Product and Process Innovation Performance

et al. 2018

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Nowadays, companies need to absorb new knowledge from external sources to grasp environmental issues. However, the internal mechanisms through which external knowledge is turned into green innovations remain scarcely addressed. Hence, this paper aims to investigate the relationships between the two dimensions of absorptive capacity (potential and realized) with green products and process innovation performance. This study contributes to the literature by disentangling how companies need to acquire, assimilate, transform and exploit external environmental knowledge to develop green innovations. To this aim, this empirical study is based on a sample shaped by 112 firms belonging to the Spanish automotive components manufacturing sector. The results provide evidence to show that potential and realized absorptive capacities are positively related to both green product innovation performance and green process innovation performance.

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Choosing PLS path modeling as analytical method in European management research: A realist perspective

Cited by 476 publications

References 43 publications

The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach

The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach

The Effect of Absorptive Capacity on Green Customer Capital under an Organizational Unlearning Context

Potential and Realized Absorptive Capacity as Complementary Drivers of Green Product and Process Innovation Performance

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