The Use of Partial Least Squares Path Modeling in International Marketing

Purpose: This paper discusses partial least squares path modeling (PLS), a powerful structural equation modeling technique for research on international marketing. While a significant body of research provides guidance for the use of covariance-based structural equation modeling (CBSEM) in international marketing, there are no subject-specific guidelines for the use of PLS so far. Methodology/approach: A literature review of the use of PLS in international marketing reveals the increasing application of this methodology. Findings: This paper reveals the strengths and weaknesses of PLS in the context of research on international marketing, and provides guidance for multi-group analysis. Originality/value of paper: The paper assists researchers in making well-grounded decisions regarding the application of PLS in certain research situations and provides specific implications for an appropriate application of the methodology