Partial least square structural equation modelling’use in information systems: an updated guideline in exploratory settings.

Abstract

The purpose of many studies in the field of Information Systems (IS) research is to analyse causal relationship between variables. Structural Equation Modelling (SEM) is a statistical technique for testing and estimating those causal relationships based on statistical data and qualitative causal assumption. Partial Least Square Structural Equation Modelling (PLS- SEM) is the technique that is mostly used in IS research. It has been subject to many reviews either in confirmatory or exploratory settings. However, it has recently emerged that PLS occupies the middle ground of exploratory and confirmatory settings. Thus, this paper intends to propose an updated guideline for the use of PLS-SEM in Information Systems Research in exploratory settings maintaining interpretability. A systematic literature review of 40 empirical and methodological studies published between 2012 and 2016 in the leading journal of the field guide future empirical work.