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Presentations at an Academic or Professional conference (2009), 57th Session of the International Statistical Institute (ISI)

A Joint Use of PLS Regression and PLS Path Modelling for a Data Analysis Approach to Latent Variable Modelling

ESPOSITO VINZI Vincenzo , RUSSOLILLO G., TRINCHERA L.

Structural Equation Models (SEMs) are widely used to model complex causal relations as the ones de?ning human behaviors. Several techniques exist to estimate SEM parameters. Among them the PLS Path Modeling (PLS- PM) algorithm is the most widely used technique. In particular, PLS-PM allows taking into account formative blocks of manifest variables. A new way to compute outer weights in the case of formative block of manifest variables has been recently proposed by Esposito Vinzi et al. [2009]. This approach involves using PLS Regression (PLS-R) in order to compute outer weights even in the case of multicollinearity among the manifest variables of the same block. However, PLS Regression supposes linearity in relations between variables. Following the work by Esposito Vinzi et al. [2009], we decide to use a non-linear approach to PLS-R in order to estimate measurement model parameters in a non-linear PLS-PM approach to SEMs.

ESPOSITO VINZI, V., RUSSOLILLO, G. and TRINCHERA, L. (2009). A Joint Use of PLS Regression and PLS Path Modelling for a Data Analysis Approach to Latent Variable Modelling. In: 57th Session of the International Statistical Institute (ISI).