Handbook of Partial Least Squares Concepts, Methods and Applications

The "Handbook of Partial Least Squares (PLS) and Marketing: Concepts, Methods and Applications" is the second volume in the series of the Handbooks of Computational Statistics. This Handbook represents a comprehensive overview of PLS methods with specific

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Series Editors James E. Gentle Wolfgang K. Härdle Yuichi Mori

For further volumes: http://www.springer.com/series/7286

Vincenzo Esposito Vinzi Wynne W. Chin Jörg Henseler Huiwen Wang Editors

Handbook of Partial Least Squares Concepts, Methods and Applications

123

Editor-in-Chief Vincenzo Esposito Vinzi ESSEC Business School of Paris and Singapore Department of Information Systems & Decision Sciences Avenue Bernard Hirsch - B.P. 50105 95021 Cergy-Pontoise Cedex France [email protected] Editors Wynne W. Chin Bauer Faculty Fellow Department of Decision and Information Sciences C.T. Bauer College of Business 334 Melcher Hall, room 280D University of Houston Houston, Texas 77204-6282 [email protected]

ISBN 978-3-540-32825-4

Jörg Henseler Nijmegen School of Management Institute for Management Research Radboud Universiteit Nijmegen 6500 HK Nijmegen The Netherlands [email protected]

Huiwen Wang School of Economic Management BeiHang University 37, XueYuan Road, HaiDian District Beijing 100191 P. R. China [email protected]

e-ISBN 978-3-540-32827-8

DOI 10.1007/978-3-540-32827-8 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2009943435 ©Springer-Verlag Berlin Heidelberg 2010 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: deblik, Berlin, Germany Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Contents

Editorial: Perspectives on Partial Least Squares . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . Vincenzo Esposito Vinzi, Wynne W. Chin, J¨org Henseler, and Huiwen Wang

1

Part I Methods PLS Path Modeling: Concepts, Model Estimation and Assessment 1

Latent Variables and Indices: Herman Wold’s Basic Design and Partial Least Squares .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 23 Theo K. Dijkstra

2

PLS Path Modeling: From Foundations to Recent Developments and Open Issues for Model Assessment and Improvement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 47 Vincenzo Esposito Vinzi, Laura Trinchera, and Silvano Amato

3

Bootstrap Cross-Validation Indices for PLS Path Model Assessment . . . . . . .. . . . . .