The results of PLS predicts

Questions about the implementation and application of the PLS-SEM method, that are not related to the usage of the SmartPLS software.
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sling
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 »

Hi,
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,
Lintje
jmbecker
SmartPLS Developer
Posts: 1282
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. https://doi.org/10.1108/EJM-02-2019-0189
Dr. Jan-Michael Becker, BI Norwegian Business School, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
GoogleScholar: http://scholar.google.de/citations?user ... AAAJ&hl=de
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