On the role of partial least squares in path analysis for the social sciences

Abstract

We describe the current and potential future roles for partial least squares (PLS) algorithms in path analyses, guided by recent advances in envelope theory. After reviewing the present debate and establishing a context, we conclude that, depending on specific objectives, PLS methods have considerable promise, but that their full potential, while reachable, is not now being realized. The future developments necessary for achieving their full potential in the social sciences are clear and doable, albeit demanding. A critique of covariance-based structural equation modeling (CB-SEM), as it relates to PLS, is given as well. Technical details are available in the appendix.