1
PLS Algorithm
• Step 1: Initialization
• Step 2: Inner Approximation
• Weighing schemes (Centroid, factorial and path)
• Step 3: Outer Approximation
• Step 4: Estimating Factor Scores
• Step 5: If the relative change of all the outer weights from
one iteration to the next are smaller than a predefined
tolerance, the estimation of factor scores done in Step 4 is
taken to be final. Otherwise go back to Step 2
2
PLS Algorithm
• Step 1: Initialization
3
PLS Algorithm
• Step 3: Outer Approximation
4
PLS Algorithm
• Step 5: If the relative change of all the outer weights from
one iteration to the next are smaller than a predefined
tolerance,
5
PLS-SEM Limitation
• No agreed goodness-of-fit index (Hair Jr, et al., 2013, p.185)
• estimates are not optimal regarding bias and consistency
(Hair, Ringle and Sardstedt, 2011, p. 143).