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June 25, 2019European Journal of Marketing

Predictive model assessment in PLS-SEM: guidelines for using PLSpredict

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Authors

GSGalit ShmueliMSMarko SarstedtJHJoseph F. Hair

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Overview

Methodological evaluation demonstrates execution of PLSpredict in structural equation modeling, highlighting standardized procedures for testing out-of-sample predictive power.

Key Points

  • To establish systematic guidelines and best practices for evaluating out-of-sample predictive performance in partial least squares structural equation modeling using the PLSpredict procedure.
  • Conceptual advancement of the PLSpredict algorithm using holdout sample procedures to generate case-level predictions at item and construct levels.
  • Demonstration of practical implementation and interpretation using an empirical tourism marketing dataset.
  • PLSpredict provides a standardized holdout sample framework to quantify out-of-sample predictive capabilities beyond traditional in-sample explanatory metrics.
  • Routine prediction-oriented assessments resolve discrepancies between explanatory fit and predictive utility in structural equation models.

Cite This Study

Shmueli et al. (2019) studied this question.

synapsesocial.com/papers/69d690eac5b08eef10029c3chttps://doi.org/10.1108/ejm-02-2019-0189
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