This paper integrates a set of independent social capital indicators into one index by using structural equation modeling (SEM) based on partial least squares estimation (PLS). The social capital index consists of two dimensions: participation and trust. In each of the two dimensions, three...

In this paper determinants of information systems (IS) outsourcing are deduced from transaction cost economic theory, resource-based theory and power theory. They are summarized in a theoretical framework which is tested using a sample of small and medium sized enterprises (SMEs) in Germany. The...

Structural equation modeling (SEM) has become a mainstream method in many fields of business research, but its use in family business research remains in its infancy. This lag in SEM's application holds especially true for partial least squares SEM (PLS-SEM), an alternative to covariance-based...

This paper aims to analyze the relationship between institutional quality, corruption level, and economic development. The methodology makes use of cross-national data developed by the World Bank on perceived levels of corruption, institutional framework quality and economic development to test...

Achieving a state of being financially satisfied is a more feasible aim than becoming debt-free, which requires well strategized economic behaviors over one’s life cycle. Furthermore, financial satisfaction can describe an individual’s perception concerning his/her current financial...

This paper reviews various treatments of non-metric variables in Partial Least Squares (PLS) and Principal Component Analysis (PCA) algorithms. The performance of different treatments is compared in the extensive simulation study under several typical data generating processes and...

In this paper the Social Institutions and Gender Index (SIGI) is constructed with Principal Component Analysis (PCA) and Partial Least Squares (PLS). Using the SIGI, we test the effects of social institutions related to gender inequality on several development outcomes, such as female education,...

Organisational culture is a decisive factor for a firm's innovativeness and performance. Our empirical model explores the relationship between organisational culture — based on the competing values model — as an antecedent of exploration and exploitation, innovation success and firm...

This paper proposes a strategy to detect the presence of common serial cor- relation in large‐dimensional systems. We show that partial least squares can be used to consistently recover the common autocorrelation space. Moreover, a Monte Carlo study reveals that univariate autocorrelation...