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  • Difference PLS-SEM and Covariance-Based CB-SEM

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    Leonardo Miljko
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    PLS-SEM and CB-SEM differ in their research objectives, purposes, and data requirements. PLS-SEM is used for exploratory research with insufficient theory to explain variance, allows smaller sample sizes, and is more flexible. CB-SEM is for confirmatory research to test theory by maximizing fit between data and estimates, requires larger sample sizes, and normal data distribution.

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    Difference PLS-SEM and Covariance-based CB-SEM

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    Difference PLS-SEM and Covariance-based CB-SEM

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    PLS-SEM and CB-SEM differ in their research objectives, purposes, and data requirements. PLS-SEM is used for exploratory research with insufficient theory to explain variance, allows smaller sample sizes, and is more flexible. CB-SEM is for confirmatory research to test theory by maximizing fit between data and estimates, requires larger sample sizes, and normal data distribution.

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    91 views1 page

    Difference PLS-SEM and Covariance-Based CB-SEM

    Uploaded by

    Leonardo Miljko
    PLS-SEM and CB-SEM differ in their research objectives, purposes, and data requirements. PLS-SEM is used for exploratory research with insufficient theory to explain variance, allows smaller sample sizes, and is more flexible. CB-SEM is for confirmatory research to test theory by maximizing fit between data and estimates, requires larger sample sizes, and normal data distribution.

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    Criteria PLS-SEM CB-SEM

    Research Objectives Exploratory and confirmatory Strictly Confirmatory based on


    based sufficient theoretical base
    on insufficient theoretical base
    Research Purpose Prediction by explaining the Theory testing by explaining the
    variance maximizing fit between the
    of key target constructs. correlational matrix and parameter
    estimates.
    Sample Size Small (Minimum 20) Large (Minimum 200-800)
    Consideration
    Data Distribution None. Least assumptions about Multivariate normal data is required.
    Properties properties of normal distribution Properties of normal distribution
    of should be strictly met.
    data are required.
    Model Specification Both formative and reflective Only reflective relationships can be
    relationships can be used used
    Measurement Flexible Rigid
    Objectives
    Hierarchical Latent Determinate nature of factors so Indeterminate nature of factors is
    Variable Scores explicitly calculating unobserved considered
    variables estimate

    Source: Developed by researcher from different literature sources e.g. (Hsu et al.
    2006; Henseler et al. 2009; Hair et al. 2011; Hair et al. 2014)

    1. CB-SEM is used mostly when you have an existing theory to test, whereas PLS-SEM
    is appropriate in the exploratory stage for theory building and prediction.
    2. If the goal of your research is model fit, go for CB-SEM but if you want to maximize
    the R square opt for PLS-SEM.
    3. Also PLS-SEM is preferable when you have higher order models and formative
    measure constructs.

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