Business Research Applications Paper Res 320
Structural equation modeling (SEM) has been widely used to examine complex research models in international business and marketing research.
The authors examined a subset of journals in the field and did not include general management journals that publish international business and marketing-related studies. Anyone may reproduce, distribute, translate and create derivative works of the article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. Researchers in international business and marketing face the challenge of constantly and rapidly changing research contexts owing to the growing internationalization of firms, the development of the global economy, and significant shifts in the formal and informal institutional environments.In general, PLS-SEM, in contrast to CB-SEM, stresses prediction and exploration, is able to handle complex models, and simultaneously relaxes the demands on data as well as the specification of relationships (e.g. The procedure involves a variety of benefits that could be fruitful for international business and marketing researchers to exploit.For instance, it better serves predictive and exploratory purposes involved in situations of soft theory (Sosik , 2009) and is better suited to explain complex models or relationships (Fornell, 1982; Wold, 1985).Exploring is the first step in theory building – the step that establishes the initial link between the observations a researcher gathers about a phenomenon and a theory that describes it.Thus, if the primary objective is to develop hypotheses rather than test them, the researcher identifies and further explores the relevant and dominant effects.Rigdon (2012, 2014) advocates emancipating composite-based SEM (e.g.PLS-SEM) as a method for estimating complex cause-effect relationship models.Furthermore, over the past decades, the fluid and dynamic environment has led to increasingly complex research phenomena and models (e.g. Therefore, international business and marketing research requires the use of methodological approaches that are able to handle the field’s changing nature and complexity, and the resulting broad theorizing agenda (Buckley, 2002; Dunning, 2001; Sinkovics , 2005; Seno-Alday, 2010; Sullivan and Daniels, 2008).In selecting an analytical approach, researchers need to carefully consider the research objective, the underlying theoretical knowledge, and the existing empirical evidence.Such exploration-oriented approaches are not aligned with a particular theoretical basis, they are often based on several theoretical perspectives, and researchers often explain findings by (carefully) using different lenses.To address the specifics of a more exploratory approach and the increasing complexity of international business and marketing phenomena, researchers need to carefully choose an analytical technique that aligns the research objective with the amount of existing knowledge.