An Innovative Application of Composite-Based Structural Equation Modeling in Hospitality Research With Empirical Example. (February 2021)

• Record Type: Journal Article
• Authors: Manosuthi, Noppadol; Lee, Jin-Soo; Han, Heesup
• Is Part Of: Cornell hospitality quarterly. Volume 62:Number 1(2021)
• Page Start: 139
• Page End: 156
• Publication Date: 2021-02
• Subjects: composite-based structural equation modeling (SEM) -- partial least squares path modeling (PLS-PM) -- consistent partial least squares (PLSC) -- generalized structured component analysis (GSCA) -- confirmatory composite analysis (CCA) -- invariance analysis; Hospitality industry -- Periodicals; Hotel management -- Periodicals; Restaurant management -- Periodicals; 338.4791
• DOI: 10.1177/1938965520951751
• Languages: English
• ISSNs: 1938-9655

Abstract

Partial least squares path modeling (PLS-PM) and generalized structured component analysis (GSCA) are two key estimators derived from a full-fledged composite-based structural equation modeling (SEM). The analyses of PLS-PM and GSCA have been recently extended to mimic factor-based SEM, and the extended approaches are called PLSC and GSCAM, respectively. Simulation studies have confirmed that the relative performance of PLS-PM is comparable with that of GSCA. Similarly, GSCAM, PLSC, and the traditional factor-based SEM perform equally well in parameter recovery. Although composite-based SEM perfectly fits into the current research landscape that focuses on a prediction-oriented approach, empirical research in the hospitality context that uses PLS-PM, GSCA, PLSC, and GSCAM estimators is extremely rare. To encourage hospitality researchers to adopt these methodologies, we demonstrate an illustrative example using PLS-PM, GSCA, PLSC, and GSCAM based on the confirmatory composite analysis (CCA) procedure. Measurement and structural invariances, applications of model fit, PLSpredict, and importance-performance map analysis are incorporated into our example. Finally, practical management in the hospitality field based on this methodology is discussed.