Business Research Applications Paper Res 320

Business Research Applications Paper Res 320-35
One of the most powerful current research methodologies is structural equation modeling (SEM), which mainly follows one of two procedures: composite-based partial least squares SEM (PLS-SEM) (Wold, 1982; Hair , 2017) and factor-based covariance-based SEM (CB-SEM) (Jöreskog, 1978; Rigdon, 1998), which were developed as complementary SEM methods (Jöreskog and Wold, 1982).They differ greatly in their statistical methods, and have distinct goals and requirements (Hair , 2014a).

One of the most powerful current research methodologies is structural equation modeling (SEM), which mainly follows one of two procedures: composite-based partial least squares SEM (PLS-SEM) (Wold, 1982; Hair , 2017) and factor-based covariance-based SEM (CB-SEM) (Jöreskog, 1978; Rigdon, 1998), which were developed as complementary SEM methods (Jöreskog and Wold, 1982).They differ greatly in their statistical methods, and have distinct goals and requirements (Hair , 2014a).

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Furthermore, over the past decades, the fluid and dynamic environment has led to increasingly complex research phenomena and models (e.g. Therefore, international business and marketing research requires the use of methodological approaches that are able to handle the field’s changing nature and complexity, and the resulting broad theorizing agenda (Buckley, 2002; Dunning, 2001; Sinkovics , 2005; Seno-Alday, 2010; Sullivan and Daniels, 2008).

In selecting an analytical approach, researchers need to carefully consider the research objective, the underlying theoretical knowledge, and the existing empirical evidence.

The evaluation of (new) methodological approaches to address specific research problems has been the focus of international marketing and advertising research (e.g.

Sinkovics , 2009, 2012) and is a priority on the international business agenda (e.g.

Such exploration-oriented approaches are not aligned with a particular theoretical basis, they are often based on several theoretical perspectives, and researchers often explain findings by (carefully) using different lenses.

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To address the specifics of a more exploratory approach and the increasing complexity of international business and marketing phenomena, researchers need to carefully choose an analytical technique that aligns the research objective with the amount of existing knowledge.

Exploring is the first step in theory building – the step that establishes the initial link between the observations a researcher gathers about a phenomenon and a theory that describes it.

Thus, if the primary objective is to develop hypotheses rather than test them, the researcher identifies and further explores the relevant and dominant effects.

Structural equation modeling (SEM) has been widely used to examine complex research models in international business and marketing research.

While the covariance-based SEM (CB-SEM) approach is dominant, the authors argue that the field’s dynamic nature and the sometimes early stage of theory development more often require a partial least squares SEM (PLS-SEM) approach.

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