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When to use PLS-SEM?

  •  The goal is to predicting key target constructs or identifying key “ driver “ constructs.
  • Formative constructs are easy to use in the structural model. Note that formative measures can also be used with CB-SEM, but doing so requires construct specifization modification ( e.g, the construct must include both formative and reflective indicators to meet identification requirements)
  • The structural model is complex ( many constructs and many indicators)
  •  The sample size is small
  •  The plan is to use latent variable scores in subsequent analyses.
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