The results of PLS predicts

PLS is broadly applied in modern business research. This forum is the right place for discussions on the use of PLS in the fields of Marketing, Strategic Management, Information Technology etc.
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PLS Junior User
Posts: 3
Joined: Fri Jan 19, 2018 8:54 am
Real name and title: Lintje Sie

The results of PLS predicts

Post by sling »

I seek your advice on the results of PLSpredict. If the results of the Q² value in PLSPredict are positive but when comparing with the LM outcomes, majority of the PLS-SEM results have higher prediction errors (e.g., in terms of RMSE or MAE) than the LM. Based on these results, can we still conclude that The PLS-SEM models have better predictive performance than using simply mean prediction but in comparison with LM (linear regression model) outcomes, generally the PLS-SEM models do not improve the the predictive performance of the available indicator data.

Can we just use one of these two benchmarks ( Q2 and RMSE/MAE) or we have to use both to assess the PLS_SEM predictive perfomance?

Appreciate your advice. Thank you.

Best regards,
SmartPLS Developer
Posts: 1203
Joined: Tue Mar 28, 2006 11:09 am
Real name and title: Dr. Jan-Michael Becker

Re: The results of PLS predicts

Post by jmbecker »

This paper has a good step-by-step guideline on how to use PLSPredict:
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J. H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European journal of marketing, 53 (11), 2322-2347.
Dr. Jan-Michael Becker, BI Norwegian Business School, SmartPLS Developer
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