ABSTRACT
This chapter explains the Partial Least Squares Structural Equation Modeling (PLS-SEM) method and illustrate its application in a tourism modeling context. It examines how PLS-SEM can be used to examine complex models where the phenomenon is new and exploratory, where the sample size is small, examine models with formative and reflective constructs, as well as higher order models. The chapter demonstrates how PLS-SEM can be used to examine the structural relationships among full higher order molecular models, without the need for parceling. It discusses the advantages of PLS-SEM in examining models where the assumptions for applying traditional CB-SEM approach are met. The chapter presents important insights on the application of the PLS-SEM method in tourism and is particularly useful for researchers, doctoral students, as well as journal editors and reviewers. Structural equation modeling emerged from the need to measure latent constructs while simultaneously testing the relationships among these constructs within a single framework of analysis.
