Contributing to the Success of PLS in SEM: An Action Research Perspective

I share with Evermann and Rönkkö (2023) the belief that classic composite-based partial least squares path modeling (PLS-PM) presents shortcomings when used to conduct structural equation modeling (SEM) analyses. The shortcomings can be traced back to one fundamental problem, which is that latent variables (LVs) are approximated in PLS-PM as exact linear combinations of their corresponding indicators. In SEM, each LV is in fact a factor; i.e., a linear combination of the indicators and a measurement residual. My approach to addressing the shortcomings of PLS-PM is rather unique among researchers concerned with quantitative methods. I have employed an action research approach, helping investigators employ SEM in their empirical studies. This has led to my development of a widely used software tool for SEM analyses. I illustrate my action research orientation by discussing three recent methodological developments with which I have been closely involved

PLS-based SEM Algorithms: The Good Neighbor Assumption, Collinearity, and Nonlinearity

The partial least squares (PLS) method has been extensively used in information systems research, particularly in the context of PLS-based structural equation modeling (SEM). Nevertheless, our understanding of PLS algorithms and their properties is still progressing. With the goal of improving that understanding, we provide a discussion on the treatment of reflective and formative latent variables in the context of three main algorithms used in PLS-based SEM analyses –PLS regression, PLS Mode A, and PLS Mode B. Two illustrative examples based on actual data are presented. It is shown that the “good neighbor†assumption underlying modes A and B has several consequences, including the following: the inner model influences the outer model in a way that increases inner model coefficients of association and collinearity levels in tandem, and makes measurement model analysis tests dependent on structural model links; instances of Simpson’s paradox tend to occur with Mode B at the latent variable level; and nonlinearity is improperly captured. In spite of these mostly detrimental outcomes, it is argued that modes A and B may have important and yet unexplored roles to play in PLS-based structural equation modeling analyses

Sharing Interdepartmental Knowledge using Collaboration Technologies: An Action Research Study

Organizational processes today are marked by a growing fragmentation of knowledge and responsibilities. Rarely a process is found that is entirely carried out by one small group of people housed in the same department and physically close to each other. The most likely picture are processes encompassing activities carried out by two or more separate departments that are physically isolated from each other, and whose members have their own culture and follow their own schedules. While this configuration has its advantages, it also leads to a number of problems stemming from the fact that members of one department have very little knowledge about what members of other collaborating departments do. This paper discusses a study in which an email-based collaboration technology is used to support knowledge communication among people from different departments. The findings of this study are generally positive and contradict most of the empirical research conducted so far. Yet, these findings are plausibly explained based on a combination of social influences and compensatory adaptive behavior

Can the Adoption of a Leaner Medium Increase Group Outcome Quality?

There has been mounting evidence that the predictions of the media richness theory do not hold in a number of situations. For example, a number of studies indicate that a lean medium can be the choice of groups engaged in complex tasks, even when richer media are available. However, there is very little research evidence that the adoption of a leaner medium can lead to an actual increase in group outcome quality. In this paper, we go some way towards filling this research gap, by providing evidence that groups can adapt their behavior in order to overcome the limitations of a leaner medium and produce outcomes that are perceived by group members as being of higher quality than in richer media. We studied five process improvement groups in a New Zealand university. The groups voluntarily conducted most of their interactions through an e-mail conferencing system developed by the autho

Communication-Based Versus Workflow-Based Redesign: Some Observations From An Experimental Study

Modeling and representation approaches and techniques have been used extensively both in business process improvement and in the design and development of information systems, in order to better understand the processes within organizations. The primary purpose of this study is to investigate the effect of different business process representation approaches and related techniques on business process improvement projects.  During the last decade, organizational redesign projects have had a very high rate of failure. We focus on four different research questions by conducting an experiment involving 174 students from a mid-sized university in northeastern United States, and analyzing the corresponding empirical data. The analysis of the data from the experiment indicates that an emphasis on the flow of information and communication in business processes can have a positive impact on the success of business process redesign projects

Publishing Information Systems Action Research for a Positivist Audience

Action research is particularly valuable for its ability to inform theory while making a practical difference. Special issues of MISQ in 2004 and Information Technology and People in 2001 called attention both to action research and research methodology. Yet action research is not widely disseminated across the information systems discipline. The purpose of this tutorial is to advance information systems action research and serve researchers, practitioners, and reviewers by addressing the dissemination problem. We consider how an action research project and the resulting article can widen its appeal to information systems scholars in two ways. First, by clarifying the information systems research paradigm vocabulary of epistemology, methodology, and the action research approach. And second, we outline an article structure more familiar to positivist researchers, thereby creating a bridge among IS scholars to a largely positivist audience. This tutorial is based on the experiences of the authors as information systems action researchers

Internet Diffusion and Government Corruption in Latin America and Sub-Saharan Africa

In this paper we examine relationships among Internet diffusion, voice and accountability, and government corruption based on data from Latin American and Sub-Saharan African countries. Our study suggests that greater levels of Internet diffusion are associated with greater levels of voice and accountability, and that greater levels of voice and accountability are associated with lower levels of government corruption. Also, there seems to be an overall relationship between Internet diffusion and government corruption, which is primarily indirect and mediated by voice and accountability. Our results also suggest that, for each additional 15 Internet users per 100 inhabitants in a country in these regions, there is approximately a 35 percent decrease in government corruption, mediated by an increase in voice and accountability

Detecting Deception in Web-Based Contracts: Priming Users about the Possible Threats of Adverse Clauses

The ample body of research in deception detection indicates that the average person cannot detect deception better than chance. By the same token, web contract issuers are introducing clauses that are compromising the privacy of web users and are, in some instances, legally binding. The purpose of this paper is bifold: first, to apply the body of research that exists in deception detection to web-based contracts, and second, to gain knowledge of how people can learn to identify deception on such contracts. In this experiment, users are primed of the possibility of deception by the means of a warning screen that is displayed right before the clauses of a contract are presented. The results show that priming users positively influence perceived cognitive effort and perceived ambiguity, this in turn have an effect on subjects to spend more time reviewing clauses which ultimately trigger a better detection rate of deceptive clauses

Lateral Collinearity and Misleading Results in Variance-Based SEM: An Illustration and Recommendations

Variance-based structural equation modeling is extensively used in information systems research, and many related findings may have been distorted by hidden collinearity. This is a problem that may extend to multivariate analyses, in general, in the field of information systems as well as in many other fields. In multivariate analyses, collinearity is usually assessed as a predictor-predictor relationship phenomenon, where two or more predictors are checked for redundancy. This type of assessment addresses vertical, or “classic”, collinearity. However, another type of collinearity may also exist, here called “lateral” collinearity. It refers to predictor-criterion collinearity. Lateral collinearity problems are exemplified based on an illustrative variance-based structural equation modeling analysis. The analysis employs WarpPLS 2.0, with the results double-checked with other statistical analysis software tools. It is shown that standard validity and reliability tests do not properly capture lateral collinearity. A new approach for the assessment of both vertical and lateral collinearity in variance-based structural equation modeling is proposed and demonstrated in the context of the illustrative analysis

CRITICAL ENTERPRISE SOFTWARE CONTRACTING ISSUES: RIGHTS, ASSURANCES AND RESPONSIBILITIES

Unfavorable contractual agreement can be detrimental to the well-being of an organization. Often software contracts are written to favor the vendor and their terminology is vague and in a high-level language that can make organizations vulnerable. Among all IT applications, Enterprise Software is particularly critical due to integrating various critical business processes. In addition, ES implementations are among the most expensive types of IT implementations. Thus, ES contracting mistakes can be particularly costly for organizations