Recent Advances and Applications in Partial Least Squares Structural Equation Modeling (PLS-SEM)

The concept of corporate governance has become a topic of global discussion since The New York Stock Exchange crashed on 19 October 1987, when many multinational companies listed on the New York Stock Exchange experienced large financial losses. CG was a preventive measure and increased investor confidence in the company. CG implementation is influenced by isomorphisms, such as organizational structure and the external environment in the form of regulation, competition, and culture. In Indonesia, the quality of CG implementation still contributes to the country’s economic growth. Weak CG implementation is due to the adoption of the western system immediately. It arises due to a high ownership structure, government intervention, underdeveloped capital markets, and weak law enforcement. This study aims to examine and analyze more deeply about factors that cause CG not to be inadequate to develop properly in Indonesia. Private and state-owned companies in the East Kalimantan Industrial Estate are the research samples for the SOR modelling exploration method. The SOR (stimulus-organism-response) model is a novelty in identifying CG implementation. Identification of the model to obtain a structural model is carried out by using PLS-SEM (partial least square structural equation modelling) through an institutional approach. The results found that the organizational structure and national cultural environment strongly influence CG implementation through the mediation of organizational structure. The contribution to understanding the national cultural environment in CG implementation efforts will be driven by organizational structure. Comprehensively, this study describes other factors such as organizational culture, environment competition, and the environment mediated by organizational structure. The national cultural environment mediated by organizational culture did not significantly affect CG. Full article

The continuous loss of farmland in Indonesia is a major problem in the food production industry. The Gempol-Pandaan road, which is a section of the Trans Java toll road and connects the major cities of Surabaya and Malang, gives the Pandaan District of Indonesia its strategic location. Sustainable Food Agriculture Land (SFAL) in the Pandaan District is one strategy for expanding wetland farming. Therefore, this research aims to analyze the connection between social capital and landowners’ intention to alter SFAL in Pandaan District, Pasuruan Regency, hoping to resolve existing land-use conflicts. The purpose of this study was to use partial least square structural equation modeling (PLS-SEM) to the question of how landowners’ social capital is related to their intention to change land use. The PLS-SEM analysis shows that there are less opportunities for SFAL landowners to shift land use when social capital is high. Conversely, greater intentions among SFAL landowners to convert agricultural land to nonagricultural uses are associated with weaker or lower relationships among social capital characteristics. Full article

Strategic entrepreneurship refers to the ability of an MSME to investigate potential entrepreneurial ventures while exploiting its current competitive advantages. Academics and practitioners have offered models to deconstruct strategic entrepreneurship; however, there are few distinctive strategic entrepreneurship models appropriate for certain business circumstances. Culinary businesses in Cibinong District, Bogor Regency face several challenges, including low-quality human resources, inadequate capital and technology, and poor entrepreneurial spirit. This study aims to learn how the performance of women-owned fish processing MSMEs under COVID-19 conditions connects to several strategic entrepreneurship components, such as environmental factors, individual resources, resource orchestration, and competitive advantage. Research data taken from 30 women-owned fish processing businesses were processed using SMART-PLS 3.0, followed by a quantitative descriptive method analysis. The outcome was that the components of the environment, specific resources, and orchestration of those resources could generate performance and value for the customer, leading to competitive advantages. This research provides a current understanding of attitudes to businesswomen’s activities throughout the pandemic period, particularly in relation to entrepreneurship chances and MSME performance. Strategic entrepreneurship is necessary to improve performance in dynamic environments. Full article

The COVID-19 pandemic led to higher education institutions adopting alternative teaching models to continue their work while complying with health measures. Specifically, in Spain, once the lockdown period was over, universities adopted the blended learning (BL) model, which allowed for a partial return to the classroom. The BL model meant a completely new approach for students that impacted their learning experience. Using structural equation modelling (SEM), this paper explores in-depth students’ experience with BL—social–behavioural, cognitive–affective, sensory and formative—and tests the impact of BL on students’ satisfaction and their commitment to learning. Data were collected from a sample of 467 undergraduate students at Complutense University of Madrid (Spain) who filled out a self-administered questionnaire. The model proposed shows fit indices above the recommended thresholds, indicating an adequate model fit. Results suggest a positive influence of the different dimensions of BL experience on satisfaction. In addition, satisfaction with BL had a positive impact on students’ affective commitment. Going by these results, the students’ experience with BL has been positive, increasing their willingness to study. Finally, the implications of these results for higher educational institutions are discussed and future research lines suggested. Full article

Small and medium-sized enterprises (SMEs) play an important role in economic and development growth, particularly in developing countries. Their success depends on the expansion of their markets across borders, based on the strategies adopted, in which differentiation strategies and positional advantages play an important role. As an emerging country, Mozambican SMEs face a lack of resources and business environmental challenges in deploying their unique advantages when competing abroad. As such, the objective of this paper is to study the impact of differentiation strategies on the export performance of Mozambican SMEs, and the mediating effect of positional advantage on the relationship between the differentiation strategy and export performance of SMEs. To achieve this objective, an empirical study was conducted, based on a sample of 250 Mozambican firms, to test a theoretical model that applied Structural Equation Modeling using the Partial Least Squares (PLS-SEM) algorithm, based on SmartPLS software version 3.3.6 (SmartPLS GmbH, Oststeinbek, Germany). The results show that differentiation strategies positively impact the export performance of SMEs and that positional advantage mildly mediates the relationship between the differentiation strategy and export performance. This suggests that Mozambican SMEs may not be properly taking advantage of the positional advantage of the differentiation strategies, as the added value generated by the positional advantage is relatively modest. As such, Mozambican SMEs still need to support their positional advantages to overcome fierce international competition. This study contributes to the knowledge about the consequences of adopting differentiation strategies and positional advantages on the export performance of SMEs, particularly in the context of emerging countries. Full article

The application of Latent Growth Curve Model (LGCM) and Partial Least Square Structural Equation Modeling (PLS-SEM) has gained much attention in panel survey studies. This study explores the distributions and trends of LGCM, and PLS-SEM used in panel survey data. It highlights the gaps in the current and existing approaches of PLS-SEM practiced by researchers in analyzing panel survey data. The integrated bibliometric analysis and systematic review were employed in this study. Based on the reviewed articles, the LGCM and PLS-SEM showed an increasing trend of publication in the panel survey data. Though the popularity of LGCM was more outstanding than PLS-SEM for the panel survey data, LGCM has several limitations such as statistical assumptions, reliable sample size, number of repeated measures, and missing data. This systematic review identified five different approaches of PLS-SEM in analyzing the panel survey data namely pre- and post-approach with different constructs, a path comparison approach, a cross-lagged approach, pre- and post-approach with the same constructs, and an evaluation approach practiced by researchers. None of the previous approaches used can establish one structural model to represent the whole changes in the repeated measure. Thus, the findings of this paper could help researchers choose a more appropriate approach to analyzing panel survey data. Full article

The intelligent innovation of child safety seats has brought new impacts and challenges to the Chinese market. Researchers in the car seat industry have been focusing on industry regulations and the abuse of car seats, but there is a lack of consumer-centered research. This study is the first to combine two theories of consumer subject-specific innovation (DSI) and the theory of consumption value (TCV). This study explores how consumer innovations influence consumers’ purchase of innovative child safety seats through perceived value. The proposed research model was evaluated using a partial least squares structural equation model, and data analysis revealed that the model had good model fit, reliability, and validity. Consumer product innovation has a significantly better impact on willingness to buy than consumer information innovation. In this study, in the relationship between consumers of information innovation and purchase intention in the automobile seat industry, a new kind of parallel multi-mediating relationship between the social value, hedonic value, and novelty value of perceived products was proposed. The study’s results address the need for more consumer research in the intelligent seating industry, as well as how to give researchers and marketing firms solutions and suggestions based on facts. Full article

The global COVID-19 crisis has strongly affected tourism. In an emerging economy like Colombia’s, however, the pandemic’s effects may differ from those experienced in more advanced countries. Building on prior studies, this investigation aims to determine the economic and organizational impact of COVID-19 on the tourism sector in the areas of lodging, travel agencies, clubs, and restaurants by identifying indicators relevant to the business tourism sector. We contrast data obtained empirically from a survey administered to a sample of 289 Colombian tourism SMEs. The model, developed with structural equations, enables identification of the factors with the greatest influence. The results indicate a high impact on sales and personnel expenses, leading to a decrease in management and innovation capability. In the gradual recovery process, internal measures taken by business owners to face the crisis have been more effective than measures taken by the government. Moreover, firms have prioritized financial strategies and innovation in marketing and services. Full article

This paper aims to analyze whether Corporate Social Responsibility (CSR) can be considered as a mediator variable on the relationship among Information and Communication Technologies (ICT) adoption and SMEs performance in the hotel industry due to the lack of general consensus on the direction of this relationship. Furthermore, future expectations about the economic cycle might be a determining factor in business decision-making. Therefore, we also analyze whether these expectations influence hotel managers to adopt CSR strategies and, indeed, influences on the hotel’s performance. To this end, partial least squares structural equation modeling (PLS-SEM) is applied to a sample of 117 Spanish hotel SMEs. These results have practical implications in considering ICT adoption as a source of competitive advantage that will facilitate the implementation of CSR practices in hotels, thus improving firm performance. Full article

Low productivity and farmer business competitiveness are central issues for agricultural development and rural poverty alleviation. This study aimed to determine the influence of agricultural development on rural poverty alleviation. Data were obtained from farmers’ groups in the North Buton Regency in 2019 using questionnaires and analyzed using AMOS. The results showed that agricultural development improves farm business performance and influences rural poverty alleviation. Farm business performance leads to rural poverty alleviation. The influence of agricultural development on rural poverty alleviation was magnified when supported by improved farm enterprise performance. Therefore, agricultural development is the flagship program for poverty alleviation of rural farmers in the North Buton Regency. Full article

Population expansion and the depletion of the planet’s natural resources make it necessary to look at human consumption behavior in sustainable development. The purpose of this study is to investigate the influence factors, the influence paths, and the decision-making mechanisms of Chinese consumers’ sustainable consumption behavior through the TPB–ABC integration theory. Based on survey data from 534 consumers in Dongying, China, this study used the partial least squares structural equation model (PLS-SEM) to analyze the main factors that influence the three sections of sustainable consumption behaviors, which are green purchase behavior, green transportation behavior, and recycling and resource conservation behavior. Decision-making mechanisms are discussed concerning impact pathways. The results prove that three internal motivations and two external contexts are intimately linked to customers’ behavioral decisions, with external contexts indirectly shaping individual attitudes. Furthermore, the factors that influence various types of sustainable consumption practices differ. Specifically, green purchase behavior and green transportation behavior are mainly influenced by attitude variables, and negative contexts mainly influence recycling and resource conservation behavior. Finally, the study suggested corresponding policy recommendations to promote sustainable consumption. Full article

In recent years, there has been a trend toward automation and data exchange in manufacturing processes through industrial cognitive computing, the Internet of Things (IoT), and artificial intelligence. However, the human–machine interface plays a role in establishing a smart manufacturing system in any industry. It is necessary to develop a comprehensive model to identify the risk factors that contribute to the loss of human performance and productivity and evaluate the workplace for its compliance and agility toward safe human–machine systems. In this study, a model is proposed that can be used as a measurement tool to design ergonomic workplaces in the automotive industry. Several criteria have been classified under four enablers: physiological factors, psychological factors, environmental factors, and safety factors. These were identified through a literature review. The proposed model integrates the applications of structural equation modeling (SEM), interpretive structural modeling (ISM), and the multigrade fuzzy approach. ISM was employed to demonstrate the applicability of the model to depict various ergonomic enablers considered in the ergonomic measurement. SEM was used to validate the ergonomic measurement model statistically. Physiological factors were found to be highly correlated with ergonomic practices. Physiological and psychological factors were also highly correlated. The use of the multigrade fuzzy approach was demonstrated to determine the human factor index for an automotive component manufacturing industry. The proposed model can enable management to evaluate the various risk factors that hamper the ergonomic level of a company and thereby allow the company to harness the benefits of ergonomics to enhance safety and productivity. Full article

Non-renewable energy depletion has prompted stakeholders to advocate alternatives, such as solar energy to pursue sustainability. However, the acquisition rate of solar service is unconvincing despite various initiatives; thus, we are seeking for a more focused remedy. This study is therefore motivated to investigate elements influencing the intention to adopt solar energy, underpinned by a unified theory of acceptance and use of technology. A self-administered questionnaire through a purposive sampling method was employed, targeting working adults who own a home or intend to purchase one in the future. Homeowners residing in condominiums, apartments, or any shared building or property were excluded. Partial least squares structural equation modelling was used for data analyses. Findings reveal that awareness positively influences performance expectancy, effort expectancy, and facilitating condition. Additionally, performance expectancy and facilitating conditions foster an intention to adopt solar energy. This research contributes pivotal insights into solar energy purveyors to invoke awareness amongst Malaysia’s society while reiterating performance expectancy, effort expectancy, and facilitating conditions towards solar energy adoption. Full article

(1) Background: The purpose of this research is to find out how product knowledge, benefit perception, and risk perception variables affect the decision to use e-wallets (Go-Pay). (2) Methods: The population used in this study is Indonesian students who used Go-Pay to carry transactions at Warunk Upnormal of Dipatiukur Branch, West Java, Indonesia. The sampling technique used by the author is a non-probability sampling technique. Meanwhile, the type of sampling used by the author is accidental sampling. Based on the calculations made, the sample used in this study is 100 Indonesian students. Furthermore, the research method used in this study is quantitative methods. Data analysis was carried out using structural equation modeling (SEM). (3) Results: this study indicates that the final product knowledge and perception of risk have a positive and significant effect on user satisfaction. The latent variable of perceived benefits has a negative and insignificant impact on the decision to use. (4) Conclusions: the latent variables of product knowledge and risk perception have a positive and significant effect on user satisfaction. Meanwhile, the latent variable of perceived benefits has a negative and insignificant impact on the decision to use the e-wallet. Full article

Leadership is about lifting a person’s vision, raising their productivity to higher standards and creating a personality beyond their usual capabilities. Our study examines the Pygmalion effect and leader-member exchange (LMX) on employee task performance via organizational commitment. The data was collected from 280 middle-level managers from top ten banks in Pakistan. This study offers three main contributions to the literature. First, our results discover a strong link between the Pygmalion effect, LMX and employees’ task performance through mediation of organizational commitment. Secondly, our study indicates that leaders should have higher quality relationships with employees and higher task performance expectations. Finally, most previous studies focused on leadership approaches or have been conducted in western developed countries. To our knowledge, this study is a unique contribution to the literature on leaders’ expectations in changing and diverse environments, as in underdeveloped countries like Pakistan. Full article

Entrepreneurship has become a key part of economies, and having an entrepreneurial orientation for SMEs is essential for success. EO and dimensions may differ in different cultures and different countries, thus a cross-cultural validation is suggested by the existing literature, which is lacking Malaysian perspectives. The objective of this study is to examine the relationships between entrepreneurial orientation (EO) and business performances of Malay-based SMEs in Malaysia and used the Partial Least Square (PLS) approach for data analysis. The research model for this study was drawn from the literature on entrepreneurship. This study identified five entrepreneurial orientations and tested hypotheses on which EO has a significant influence on business performance with empirical data from a sample of 407 Malay-based SMEs in Malaysia. The PLS regression analysis shows that risk-taking, proactiveness, innovativeness, and achievement factors are the significant elements of entrepreneurship orientation. Nevertheless, one independent variable, i.e., autonomy does not exhibit any relationship. This study offers a significant contribution to the current literature by empirically analyzing the link between the subcomponent of EO and business performance, specifically in the Malaysian SME sector, which has not been explored comprehensively. The paper’s interesting findings can serve to remind entrepreneurs that they cannot neglect the element of EO in their activities, particularly the success of the business. The research could be useful for policymakers to obtain some ideas and develop policies to help SMEs in Malaysia. Specifically, to enhance the performance in the SMEs sectors, the government should enforce easy to use, consistent, and standardized policies in all SMEs sectors and for all other stakeholders in boosting these sectors. Full article

PLS-SEM has been used recently more and more often in studies researching critical factors influencing the acceptance and use of information systems, especially when the technology acceptance model (TAM) is implemented. TAM has proved to be the most promising model for researching different viewpoints regarding information technologies, tools/applications, and the acceptance and use of information systems by the employees who act as the end-users in companies. However, the use of advanced PLS-SEM techniques for testing the extended TAM research models for the acceptance of enterprise resource planning (ERP) systems is scarce. The present research aims to fill this gap and aims to show how PLS-SEM results can be enhanced by advanced techniques: artificial neural network analysis (ANN) and Importance–Performance Matrix Analysis (IPMA). ANN was used in this research study to overcome the limitations of PLS-SEM regarding the linear relationships in the model. IPMA was used in evaluating the importance and performance of factors/drivers in the SEM. From the methodological point of view, results show that the research approach with ANN artificial intelligence complements the results of PLS-SEM while allowing the capture of nonlinear relationships between the variables of the model and the determination of the relative importance of each factor studied. On other hand, IPMA enables the identification of factors with relatively low performance but relatively high importance in shaping dependent variables. Full article

The theory of planned behavior (TPB) is popular for studying behavioral intentions. While the direct relationships between the three antecedents (i.e., attitudes toward the behavior, subjective norms, and perceived behavioral control) and intentions in the TPB have been extensively studied, the authors of this study hoped to draw attention to the variable “commitment”. It is interesting to explore whether commitment mediates the relationship between the three antecedents and intentions. Furthermore, this study attempted to investigate if the TPB is appropriate for explaining students’ intentions to learn sustainability. Like many other countries, sustainability has been widely integrated into primary and secondary education in China. However, if students are not interested in or feel that they are not capable of learning sustainability, they may be reluctant to do so. Therefore, this study aimed to examine an extended TPB model with a sample of 181 students from a public junior secondary school in China through factor-based partial least squares structural equation modeling. The results showed that the model could explain the intention to learn sustainability. Specifically, this research found that commitment mediated the relationships of attitudes toward learning sustainability, subjective norms, and perceived behavioral control to the behavioral intention. Full article

A single technological advancement in the business sector tremendously changed customers’ lifestyles and consumption behavior. Drone technology is one of the main revolutions that increase business efficiency at a lower cost. However, the acceptance of emerging technologies is not rapid in developing markets. Therefore, this study aims to evaluate customers’ adoption of drone technology in the context of food delivery services. This study has used an extended technology acceptance model (TAM) to assess customers’ behavior. Product processing innovativeness, information processing innovativeness, and subjective norms have been added as additional constructs into TAM. The data of 354 customers from five different cities of Pakistan have been collected and analyzed through partial least square structural equation modeling (PLS-SEM). The results of the study revealed that all proposed hypotheses, except the positive influence of perceived ease of use on perceived usefulness, were accepted. Further, the results depict that perceived usefulness, subjective norms, and attitude were the major predictors of customers’ adoption of drone food delivery services. In addition to this, customers’ word of mouth has a greater influence and reach than other forms of marketing communication. Therefore, practitioners and marketers may consider hosting competition programs to experiment with drone food delivery systems to enhance the acceptance of this technology among the masses. Full article

The sustainable consumption and integration of digital solutions with respect to sustainable consumption have been encouraged by the new European circular economy action plan. Digital adoption has been accelerated by the COVID-19 pandemic; companies have been challenged to rapidly adapt to the constant evolution of consumer needs and expectations, leading to valuable insights into the advancement of green business practices and a consequent rethinking of their business model. The purpose of this paper is to investigate the major shifts in sustainable consumer behavior on the Romanian retail market within the context of the Green European Deal, and retailers’ priorities in agilely adapting to these significant evolutions. Based on a comprehensive literature review on these major shifts and significant evolutions at the national and international levels, a quantitative study was carried out to evaluate the Romanian retail market and identify the major challenges faced by retailers in dealing with the new set of priorities. The data collection was conducted via a survey used in the retail environment, applied within a Romanian supermarket chain. The Romanian retail sector has a particular configuration, which may have an impact upon the study’s generalizability. Located in Central and Eastern Europe at the crossroads of the EU, the Commonwealth of Independent States (CIS), and the Middle East, Romania is a leading destination for foreign direct investment, and it is recognized for the similarities of its distribution and sales channels, the range of its retail outlets, and the local retail market dominance on the Big Box segment by reputed major retailers. A spectacular evolution is recorded in Romania’s e-commerce market, including from the point of view of the long-standing and memorable traditional relationship between Romania and China which was confirmed more recently by Romanian consumers who prefer to buy online from stores in China. Our consumer research provides retailers with deep consumer insights with regard to their priorities in their agile adaptation. According to our research, Romanian consumers are environmentally concerned consumers, displaying an increased awareness about the important role they play with respect to impacting sustainable production and consumption by adopting green purchase behavior. Our study also points to the fact that retailers, although faced with challenges in targeting consumers with customized messages to reinforce their brand perception on sustainability issues, do pay considerable attention to sustainability as a personal value embraced by consumers and are willing to focus on digitizing their business processes to enable new, sustainable business models. Full article

Happiness is a very important aspect in the life and well-being of all citizens; as such, it has become a key factor in personal preferences. For these reasons, it is relevant to study what factors principally affect the happiness of the population. However, the difficulties involved in measuring this concept mean that there are no clear criteria as to which aspects should be promoted in order for citizens to achieve greater happiness. This paper uses variance-based structural equation modelling (SEM)—partial least squares path modelling (PLS)—to analyse the direct and indirect effects of European citizens’ assessment of different aspects of their city related to safety, environmental quality and urban planning on their happiness. The source of information used in this study is the Flash Eurobarometer 419 prepared by Eurostat in 2015, with a total of 9799 observations. The results show how quality of life, safety, the environment and city planning have a positive and significant influence on European citizens’ happiness, especially safety. In addition, quality of life acts as a mediating variable, primarily increasing the influence of urban planning on happiness. The findings of the study point to the relevant policies that governments should undertake to ensure the happiness of their citizens. Full article

This study measured consumers’ perspectives and behaviors with respect to corporate social responsibility (CSR). Specifically, we explored the components of CSR, including CSR aimed towards the environment, society, customers, employees, suppliers, and shareholders. We also examined the impact of CSR practices on brand attitude and purchase intention. The study surveyed 616 consumers across three locations, with detailed questionnaires in four languages. A total of 564 samples (186 from Vietnam, 189 from Indonesia, and 189 from Taiwan) qualified for data analysis. Additionally, statistics software including LISREL 8.8, STATISTICA 10, and MINITAB 19 were utilized to evaluate our hypotheses and construct a structural model. The results indicated that the consumers across the three areas were not concerned about CSR aimed towards shareholders, while all consumers considered CSR aimed towards themselves. Vietnamese customers prioritized a company’s care for its employees, while both Indonesian and Taiwanese consumers concentrated on the environment and society. In addition, suppliers’ benefits and rights attracted Indonesians’ attention. Furthermore, CSR had a positive significant impact on brand reputation in all three cultures. However, while CSR had a positive influence on customer purchase intention in Indonesia and Taiwan, it did not in Vietnam. Full article

Electronic commerce has shown exponential growth over the past decade, but the impact of COVID-19 has exceeded all expectations. Based on the theory of planned behavior, this paper aims to investigate the relationship between consumer ethnocentrism and internet purchase behavior in times of pandemics. Data was collected from 294 online purchasers, and the analysis was conducted utilizing a Partial Least Squares Structural Equation Modeling approach. The results indicate no significant impact on the relationship between the planned online purchase behavior and the country of origin when consumers face a health crisis. Additionally, the outcomes show that attitude toward online shopping positively affects online purchase behavior. Full article