In contrast, the sample size can be considerably smaller in PLS path modeling. Moreover, hypothesis building and the assessment of CBSEM results through global goodness-of-fit parameter estimation) between concepts is of primary concern. This occurrence, of course, is not of concern in theory testing where structural relationships (i.e. Yet, due to the indeterminacy of factor score estimations, there is a loss of predictive accuracy. PLS is primarily intended for causal-predictive analysis in situations of high complexity but low theoretical information.ââ The philosophical distinction between these approaches is whether to use CBSEM for theory testing and development, or PLS path modeling for predictive applications., in causal modeling situations where prior theory is strong and further testing and development is the goal, CBSEM is the most appropriate statistical methodology. 270) ââML is theory-oriented, and emphasizes the transition from exploratory to confirmatory analysis.
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