Common Beliefs and Reality About PLS: Comments on Ronnkko and Evermann (2013)

Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., Ketchen Jr., D. J., Hair, J. F., Hult, G. T. M., & Calantone, R. J. (2014). Common Beliefs and Reality About PLS: Comments on Ronnkko and Evermann (2013). Organizational Research Methods, 17(2), 182-209. https://doi.org/10.1177/1094428114526928This article addresses Rönkkö and Evermann’s criticisms of the partial least squares (PLS) approach to structural equation modeling. We contend that the alleged shortcomings of PLS are not due to problems with the technique, but instead to three problems with Rönkkö and Evermann’s study: (a) the adherence to the common factor model, (b) a very limited simulation designs, and (c) overstretched generalizations of their findings. Whereas Rönkkö and Evermann claim to be dispelling myths about PLS, they have in reality created new myths that we, in turn, debunk. By examining their claims, our article contributes to reestablishing a constructive discussion of the PLS method and its properties. We show that PLS does offer advantages for exploratory research and that it is a viable estimator for composite factor models. This can pose an interesting alternative if the common factor model does not hold. Therefore, we can conclude that PLS should continue to be used as an important statistical tool for management and organizational research, as well as other social science disciplines.publishersversionpublishe

Exploring mutual endorsement effects between celebrity CEOs and corporate brands

Scheidt, S., Gelhard, C., Strotzer, J., & Henseler, J. (2018). In for a penny, in for a pound? Exploring mutual endorsement effects between celebrity CEOs and corporate brands. Journal of Product and Brand Management, 27(2), 203-220. DOI: 10.1108/JPBM-07-2016-1265Purpose: While the branding of individuals has attracted increasing attention from practitioners in recent decades, understanding of personal branding still remains limited, especially with regard to the branding of celebrity CEOs. To contribute to this debate, this paper aims to explore the co-branding of celebrity CEOs and corporate brands, integrating endorsement theory and the concept of meaning transfer at a level of brand attributes. Design/methodology/approach: A between-subjects true experimental design was chosen for each of the two empirical studies with a total of 268 participants, using mock newspaper articles about a succession scenario at the CEO level of different companies. The study is designed to analyse the meaning transfer from celebrity CEO to corporate brand and vice versa using 16 personality attributes. Findings: This study gives empirical support for meaning transfer effects at the brand attribute level in both the celebrity-CEO-to-corporate-brand and corporate-brand-to-celebrity-CEO direction, which confirms the applicability of the concept of brand endorsement to celebrity CEOs and the mutuality in co-branding models. Furthermore, a more detailed and expansive perspective on the definition of endorsement is provided as well as managerial guidance for building celebrity CEOs and corporate brands in consideration of meaning transfer effects. Originality/value: This study is one of only few analysing the phenomenon of meaning transfer between brands that focus on non-evaluative associations (i.e. personality attributes). It is unique in its scope, insofar as the partnering relationship between celebrity CEOs and corporate brands have not been analysed empirically from this perspective yet. It bridges the gap between application in practice and the academic foundations, and it contributes to a broader understanding and definition of celebrity endorsement.publishersversionpublishe

Data-Driven Services Marketing in a Connected World

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