A Review of PLS-SEM as Statistical Approach for Business Research

Structural Equation Modeling (SEM), a Second generation multivariate data analysis technique isin use for data analysis, especially hypothesis testing from a long time. There are different approaches to SEM used in research. The objective of this research paper was to review different Structural Equation Modelling techniques used in Business Research, with special reference to variance based Partial Least Square Structural Equation Modeling (PLS-SEM). PLS-SEM is more sensitive, simpler, and powerful statistical technique for data analysis. It is mainly used in theory development for exploratory purposes and has less strict assumptions. Severaltypes of research have been done in the past on this subject; this paper compiles all the ideas by reviewing them and coveringthem in the least complicated form. It would especially help the researchers and practitioners in understanding the differences between different approaches to SEM and its applications.