PLS Path modelling: computation of latent variables with the estimation mode B

• DOI: 10.1007/s00180-007-0042-3
• Publication Date: 2007-02-23T02:45:58Z
• Authors: Mohamed Hanafi
• Keywords: PLS Path Modelling; [MATH.MATH-ST]Mathematics [math]/Statistics [math.ST]; 0101 mathematics; [MATH.MATH-ST] Mathematics [math]/Statistics [math.ST]; 01 natural sciences

PLS Path modelling has several interesting advantages compared to other existing approaches traditionally used for structural modelling. However, the lack of convergence properties of the existing iterative procedures for the computation of the latent variables, has always been considered as a major drawback. The convergence is stated only in practice. The present paper shows that when the estimation mode B is chosen for all blocks, the iterative procedure for the computation of latent variables proposed by Wold (in Encyclopaedia of statistical sciences, vol 6. Wiley, New York, pp. 581–591, 1985) is monotonically convergent.