Evaluation of Partial Least Squares Parameter Recovery

Abstract

The purpose of this study was to evaluate the performance of Partial Least Squares under lessthan-ideal conditions selected to imitate real-world data. A simulation study with a 3×3×2×2 design was conducted. The design and data features of interest were sample size (50, 300, 1000), number of items per latent variable (3, 5, 7), degree of model misspecification (correctly specified, misspecified), and nature of the relationships between items and latent variables in the measurement models (reflective, formative). Bias of model parameter estimates, and bias and accuracy of standard error estimates were examined to evaluate the performance of PLS for each experimental condition