Comments about the use of PLS path modeling in building a Job Quality Composite Indicator

A composite indicator is formed when elementary indicators are compiled into a single index, on the basis of an underlying model of the multidimensional concept that is being measured. The PLS path modeling allows the estimation of composite indicators and the measurement model could be expressed both as formative and re-ective. In this paper we construct a composite indicator of job quality using the PLS path modeling approach and compare results obtained by the formative and the re-ective measurement models of the general concept. We observe that the two approaches can give different results. Consequently, we give some suggestions in order to estimate stable and reliable models

Structural Equation Modeling in Information Systems Research Using Partial Least Squares

Empirical studies that use structural equation modeling (SEM) are widespread in information systems research. During the last few years, the component-based approach partial least squares (PLS) for testing structural models has become increasingly popular. At the same time, this approach’s limitations have become a greater concern. Some researchers even suggest using alternative approaches that are considered superior to PLS. However, we believe that PLS is an adequate choice if the research problem meets certain characteristics and the technique is properly used. Thus, the intention of this article is to resolve potential uncertainties that researchers intending to use PLS might have. Consequently, we provide a nontechnical overview of PLS and outline the ongoing discourses on SEM in general and the PLS approach in particular. Furthermore, we present a basic framework for empirical research applying PLS as well as a detailed explanation of the different process steps. Finally, examples of information systems research using PLS are summarized to demonstrate its beneficial application and the appropriateness of the proposed framework. This article can serve as a helpful guide for inexperienced researchers applying PLS for the first time, but also as a reference guide for researchers with a better understanding of the field

Assessment of TQM Practices as a Part of Supply Chain Management in Healthcare Institutions

The aim of this study is to determine the critical factors of Total Quality Management (TQM) as Supply Chain Management (SCM) practices in the healthcare sector and to measure the effect of those factors on business performance of hospitals in Turkey. Performance of the hospitals was measured using subjective measures based on the hospitals administrators perception of how their organization performed relative to the competition. The technique of Partial Least Squares (PLS) analysis is employed to investigate the relationship between TQM practices and business performance. Analysis of the data from 50 hospitals revealed that TQM practices in the healthcare SCM influence financial performance indirectly by influencing non-financial performance. The results of the study provide strategic information about the importance of TQM factors such as supplier quality, service design, process management, employee relations, training, role of top management, and data and reporting for the successful healthcare SCM