Kennesaw State University

Structural equation modeling (SEM) has become a quasi-standard in marketing and management research when it comes to analyzing the cause-effect relations between latent constructs. For most researchers, SEM is equivalent to carrying out covariance-based SEM (CB-SEM). While marketing researchers have a basic understanding of CB-SEM, most of them are only barely familiar with the other useful approach to SEM-partial least squares SEM (PLS-SEM). The current paper reviews PLS-SEM and its algorithm, and provides an overview of when it can be most appropriately applied, indicating its potential and limitations for future research. The authors conclude that PLS-SEM path modeling, if appropriately applied, is indeed a "silver bullet" for estimating causal models in many theoretical models and empirical data situations.

Purpose – The authors aim to present partial least squares (PLS) as an evolving approach to structural equation modeling (SEM), highlight its advantages and limitations and provide an overview of recent research on the method across various fields. Design/methodology/approach – In this review article, the authors merge literatures from the marketing, management, and management information systems fields to present the state-of-the art of PLS-SEM research. Furthermore, the authors meta-analyze recent review studies to shed light on popular reasons for PLS-SEM usage. Findings – PLS-SEM has experienced increasing dissemination in a variety of fields in recent years with nonnormal data, small sample sizes and the use of formative indicators being the most prominent reasons for its application. Recent methodological research has extended PLS-SEM's methodological toolbox to accommodate more complex model structures or handle data inadequacies such as heterogeneity. Research limitations/implications – While research on the PLS-SEM method has gained momentum during the last decade, there are ample research opportunities on subjects such as mediation or multigroup analysis, which warrant further attention. Originality/value – This article provides an introduction to PLS-SEM for researchers that have not yet been exposed to the method. The article is the first to meta-analyze reasons for PLS-SEM usage across the marketing, management, and management information systems fields. The cross-disciplinary review of recent research on the PLS-SEM method also makes this article useful for researchers interested in advanced concepts.

Purpose Following the call for awareness of accepted reporting practices by Ringle, Sarstedt, and Straub in 2012, the purpose of this paper is to review and analyze the use of partial least squares structural equation modeling (PLS-SEM) in Industrial Management & Data Systems ( IMDS ) and extend MIS Quarterly ( MISQ ) applications to include the period 2012-2014. Design/methodology/approach Review of PLS-SEM applications in information systems (IS) studies published in IMDS and MISQ for the period 2010-2014 identifying a total of 57 articles reporting the use of or commenting on PLS-SEM. Findings The results indicate an increased maturity of the IS field in using PLS-SEM for model complexity and formative measures and not just small sample sizes and non-normal data. Research limitations/implications Findings demonstrate the continued use and acceptance of PLS-SEM as an accepted research method within IS. PLS-SEM is discussed as the preferred SEM method when the research objective is prediction. Practical implications This update on PLS-SEM use and recent developments will help authors to better understand and apply the method. Researchers are encouraged to engage in complete reporting procedures. Originality/value Applications of PLS-SEM for exploratory research and theory development are increasing. IS scholars should continue to exercise sound practice by reporting reasons for using PLS-SEM and recognizing its wider applicability for research. Recommended reporting guidelines following Ringle et al. (2012) and Gefen et al. (2011) are included. Several important methodological updates are included as well.

This article addresses Rönkkö and Evermann’s criticisms of the partial least squares (PLS) approach to structural equation modeling. We contend that the alleged shortcomings of PLS are not due to problems with the technique, but instead to three problems with Rönkkö and Evermann’s study: (a) the adherence to the common factor model, (b) a very limited simulation designs, and (c) overstretched generalizations of their findings. Whereas Rönkkö and Evermann claim to be dispelling myths about PLS, they have in reality created new myths that we, in turn, debunk. By examining their claims, our article contributes to reestablishing a constructive discussion of the PLS method and its properties. We show that PLS does offer advantages for exploratory research and that it is a viable estimator for composite factor models. This can pose an interesting alternative if the common factor model does not hold. Therefore, we can conclude that PLS should continue to be used as an important statistical tool for management and organizational research, as well as other social science disciplines.

Organizations are currently facing the retirement of many older workers and the challenge of recruiting and retaining young talent. However, few studies have empirically substantiated generational differences in work values. This study examines the work values of a nationally representative sample of U.S. high school seniors in 1976, 1991, and 2006 (N = 16,507) representing Baby Boomers, Generation X (GenX), and Generation Me (GenMe, also known as GenY, or Millennials). With data collected across time, these analyses isolate generational differences from age differences, unlike one-time studies, which cannot separate the two. Leisure values increased steadily over the generations (d comparing Boomers and GenMe = .57), and work centrality declined. Extrinsic values (e.g., status, money) peaked with GenX but were still higher among GenMe than among Boomers (d = .26). Contrary to popular press reports, GenMe does not favor altruistic work values (e.g., helping, societal worth) more than previous generations. Social values (e.g., making friends) and intrinsic values (e.g., an interesting, results-oriented job) were rated lower by GenMe than by Boomers. These findings have practical implications for the recruitment and management of the emerging workforce.

Purpose – The purpose of this paper is to provide an overview of unobserved heterogeneity in the context of partial least squares structural equation modeling (PLS-SEM), its prevalence and challenges for social science researchers. Part II – in the next issue ( European Business Review , Vol. 28 No. 2) – presents a case study, which illustrates how to identify and treat unobserved heterogeneity in PLS-SEM using the finite mixture PLS (FIMIX-PLS) module in the SmartPLS 3 software. Design/methodology/approach – The paper merges literatures from various disciplines, such as management information systems, marketing and statistics, to present a state-of-the-art review of FIMIX-PLS. Based on this review, the paper offers guidelines on how to apply the technique to specific research problems. Findings – FIMIX-PLS offers a means to identify and treat unobserved heterogeneity in PLS-SEM and is particularly useful for determining the number of segments to extract from the data. In the latter respect, prior applications of FIMIX-PLS restricted their focus to a very limited set of criteria, but future studies should broaden the scope by considering information criteria, theory and logic. Research limitations/implications – Since the introduction of FIMIX-PLS, a range of alternative latent class techniques have emerged to address some of the limitations of the approach relating, for example, to the technique’s inability to handle heterogeneity in the measurement models and its distributional assumptions. The second part of this article (Part II) discusses alternative latent class techniques in greater detail and calls for the joint use of FIMIX-PLS and PLS prediction-oriented segmentation. Originality/value – This paper is the first to offer researchers who have not been exposed to the method an introduction to FIMIX-PLS. Based on a state-of-the-art review of the technique in Part I, Part II follows up by offering a step-by-step tutorial on how to use FIMIX-PLS in SmartPLS 3.

Managers increasingly must make decisions based on almost unlimited information. How can they navigate and organize this vast amount of data? Essentials of Business Research Methods provides research techniques for people who aren't data analysts. The authors offer a straightforward, hands-on approach to the vital managerial process of gathering and using data to make clear business decisions. They include such critical topics as the increasing role of online research, ethical issues, data mining, customer relationship management, and how to conduct information-gathering activities more effectively in a rapidly changing business environment. This is the only such book that includes a chapter on qualitative data analysis, and the coverage of quantitative data analysis is more extensive and much easier to understand than in other works. The book features a realistic continuing case throughout the text that enables students to see how business research information is used in the real world. It includes applied research examples in all chapters, as well as Ethical Dilemma mini - cases, and interactive Internet applications and exercises.

This paper provides insight into financial statement fraud instances investigated during the late 1980s through the 1990s within three volatile industries—technology, health care, and financial services—and highlights important corporate governance differences between fraud companies and no-fraud benchmarks on an industry-by-industry basis. The fraud techniques used vary substantially across industries, with revenue frauds most common in technology companies and asset frauds and misappropriations most common in financial-services firms. For each of these three industries, the sample fraud companies have very weak governance mechanisms relative to no-fraud industry benchmarks. Consistent with prior research, the fraud companies in the technology and financial-services industries have fewer audit committees, while fraud companies in all three industries have less independent audit committees and less independent boards. In addition, this study provides initial evidence that the fraud companies in the technology and health-care industries have fewer audit committee meetings, and fraud companies in all three industries have less internal audit support. This study of more current financial statement fraud instances contributes by updating our understanding of fraud techniques and risk factors in three key industries. Auditors should consider the industry context as they evaluate the risk of financial fraud, and they should compare clients' governance mechanisms to relevant no-fraud industry benchmarks.

This article proposes an alternative method for assessing the extent of family influence on any enterprise, enabling the measurement of the impact of family on outcomes such as success, failure, strategy, and operations. This proposed method, utilizing a standardized and valid instrument— the F-PEC—enables the assessment of family influence on a continuous scale rather than restrict its use as a categorical (e.g., yesqno) variable. The F-PEC comprises three subscales: power, experience, and culture. This article discusses these scales in detail.

In 1995, we were commissioned to conduct research on the impact of family businesses on the U.S. economy. A search of all relevant research led to the conclusion that the majority of existing data relating to family businesses’ economic contributions were not grounded in empirical research, and the definitions used to distinguish family businesses from other enterprises were ambiguous or non-existent. In 1996, we published a paper providing a framework for assessing the economic impact of family businesses across three ranges, defined by the degree of family involvement in the businesses. This paper revisits that research and updates and improves the original findings based on more recent data.

Abstract This paper examines the relations between three board characteristics (independence, diligence, and expertise) and Big 6 audit fees for Fortune 1000 companies. To protect its reputation capital, avoid legal liability, and promote shareholder interests, a more independent, diligent, and expert board may demand differentially higher audit quality (greater assurance, which requires more audit work) than the Big 6 audit firms normally provide. The audit fee increases as the auditor's additional costs are passed on to the client, such that we expect positive relations between audit fees and the board characteristics examined. We find significant positive relations between audit fees and board independence, diligence, and expertise. The results persist when similar measures of audit committee “quality” are included in the model. The results add to the growing body of literature documenting relations between corporate governance mechanisms and various facets of the financial reporting and audit processes, as well as to our understanding of the determinants of audit fees.

OBJECTIVE: The objective of this study was to create and validate new intrauterine weight, length, and head circumference growth curves using a contemporary, large, racially diverse US sample and compare with the Lubchenco curves. METHODS: Data on 391 681 infants (Pediatrix Medical Group) aged 22 to 42 weeks at birth from 248 hospitals within 33 US states (1998-2006) for birth weight, length, head circumference, estimated gestational age, gender, and race were used. Separate subsamples were used to create and validate curves. Smoothed percentile curves (3rd to 97th) were created by the Lambda Mu Sigma (LMS) method. The validation sample was used to confirm representativeness of the curves. The new curves were compared with the Lubchenco curves. RESULTS: Final sample included 257 855 singleton infants (57.2% male) who survived to discharge. Gender-specific weight-, length-, and head circumference-for-age curves were created (n = 130 111) and successfully validated (n = 127 744). Small-for-gestational age and large-for-gestational age classifications using the Lubchenco curves differed significantly from the new curves for each gestational age (all P < .0001). The Lubchenco curves underestimated the percentage of infants who were small-for-gestational-age except for younger girls (< or =36 weeks), for whom it was more likely to be overestimated; underestimated percentage of infants (< or =36 weeks) who were large-for-gestational-age; and overestimated percentage of infants (>36 weeks) who were large-for-gestational-age. CONCLUSIONS: The Lubchenco curves may not represent the current US population. The new intrauterine growth curves created and validated in this study, based on a contemporary, large, racially diverse US sample, provide clinicians with an updated tool for growth assessment in US NICUs. Research into the ability of the new definitions of small-for-gestational-age and large-for-gestational-age to identify high-risk infants in terms of short-term and long-term health outcomes is needed.

Abstract This paper examines time-series patterns of external financing decisions and shows that publicly traded U.S. firms fund a much larger proportion of their financing deficit with external equity when the cost of equity capital is low. The historical values of the cost of equity capital have long-lasting effects on firms’ capital structures through their influence on firms’ historical financing decisions. We also introduce a new econometric technique to deal with biases in estimates of the speed of adjustment toward target leverage. We find that firms adjust toward target leverage at a moderate speed, with a half-life of 3.7 years for book leverage, even after controlling for the traditional determinants of capital structure and firm fixed effects.

Relatively few studies have examined the audit committee oversight process--the activities that link audit committee inputs and financial reporting outcomes. To study this process, we conducted extensive interviews with 42 U.S. public company audit committee members. We explore six audit committee process areas, offer insights into the state of audit committee processes in the post-Sarbanes-Oxley Act (SOX) environment, and consider our results in light of agency theory and institutional theory; We find that many audit committee members strive to provide effective monitoring of financial reporting and seek to avoid serving on ceremonial audit committees, but within each of the six process areas we find evidence of both substantive monitoring and ceremonial action, such that neither agency theory nor institutional theory fully explains our results. We also find that many responses vary with personal and company characteristics, with particularly notable differences related to audit committee members' accounting expertise and time of appointment to the audit committee (pre-SOX versus post-SOX). We discuss implications and directions for future research and theory development.

This article presents a framework for assessing commonly accepted family business statistics, based on the criteria used to define a family business. Using existing research from multiple fields and sources, a range is extrapolated for the total number of family businesses in the US, their contribution to Gross Domestic Product (GDP) and employment.

Purpose The purpose of this paper is to review data from 1.4 million people who completed personality, attitude, psychopathology, or behavior scales between the 1930s and the present and to discuss how those differences may impact today's workplace. Design/methodology/approach The data are gathered from research reports using psychological scales over the last eight decades, primarily those using college student samples. Findings Generation Me (sometimes called Gen Y or Millennials) demonstrates higher self‐esteem, narcissism, anxiety, and depression; lower need for social approval; more external locus of control; and women with more agentic traits. Practical implications Managers should expect to see more employees with unrealistically high expectations, a high need for praise, difficulty with criticism, an increase in creativity demands, job‐hopping, ethics scandals, casual dress, and shifting workplace norms for women. Organizations can respond to these changes with accommodations (e.g. praise programs) or with counter pressure (e.g. dress codes), and it is imperative that managers consider the best reaction for their workforce. Originality/value Most studies of generations interview workers at one time; thus any differences could be due to age or generation. Many of these reports are also based on subjective opinions and perceptions. In contrast, the paper reviews quantitative data on generational differences controlling for age. This empirically based look at generations in the workplace should be useful to managers and workers.

The cross section for ${e}^{+}{e}^{\ensuremath{-}}\ensuremath{\rightarrow}{\ensuremath{\pi}}^{+}{\ensuremath{\pi}}^{\ensuremath{-}}J/\ensuremath{\psi}$ between 3.8 and 5.5 GeV is measured with a $967\text{ }\text{ }{\mathrm{fb}}^{\ensuremath{-}1}$ data sample collected by the Belle detector at or near the $\ensuremath{\Upsilon}(nS)$ ($n=1,2,\dots{},5$) resonances. The $Y(4260)$ state is observed, and its resonance parameters are determined. In addition, an excess of ${\ensuremath{\pi}}^{+}{\ensuremath{\pi}}^{\ensuremath{-}}J/\ensuremath{\psi}$ production around 4 GeV is observed. This feature can be described by a Breit-Wigner parametrization with properties that are consistent with the $Y(4008)$ state that was previously reported by Belle. In a study of $Y(4260)\ensuremath{\rightarrow}{\ensuremath{\pi}}^{+}{\ensuremath{\pi}}^{\ensuremath{-}}J/\ensuremath{\psi}$ decays, a structure is observed in the $M({\ensuremath{\pi}}^{\ifmmode\pm\else\textpm\fi{}}J/\ensuremath{\psi})$ mass spectrum with $5.2\ensuremath{\sigma}$ significance, with mass $M=(3894.5\ifmmode\pm\else\textpm\fi{}6.6\ifmmode\pm\else\textpm\fi{}4.5)\text{ }\text{ }\mathrm{MeV}/{c}^{2}$ and width $\ensuremath{\Gamma}=(63\ifmmode\pm\else\textpm\fi{}24\ifmmode\pm\else\textpm\fi{}26)\text{ }\text{ }\mathrm{MeV}/{c}^{2}$, where the errors are statistical and systematic, respectively. This structure can be interpreted as a new charged charmoniumlike state.

For a solution to the family business definition dilemma, we propose the application of a scale that assesses the extent and the quality of family influence via the measurement of three dimensions: Power, Experience, and Culture. The Family Influence on Power, Experience, and Culture (F–PEC) scale is tested rigorously, utilizing a sample of more than 1,000 randomly selected companies, through the application of exploratory and confirmatory factor analytic techniques. The scale demonstrates high levels of reliability. F–PEC has been applied in a number of studies, contributing to theory development, particularly in terms of the impact of family influence on distinct resources, and as a source of competitive advantage.

Although physician surveys are an important tool in health services and policy research, they are often characterized by low response rates. The authors conducted a systematic review of 66 published reports of efforts to improve response rates to physician surveys. Two general strategies were explored in this literature: incentive and design-based approaches. Even small financial incentives were found to be effective in improving physician response. Token nonmonetary incentives were much less effective. In terms of design strategies, postal and telephone strategies have generally been more successful than have fax or Web-based approaches, with evidence also supporting use of mixed-mode surveys in this population. In addition, use of first-class stamps on return envelopes and questionnaires designed to be brief, personalized, and endorsed by legitimizing professional associations were also more likely to be successful. Researchers should continue to implement design strategies that have been documented to improve the survey response of physicians.

Abstract Systematic assessments of species extinction risk at regular intervals are necessary for informing conservation action 1,2 . Ongoing developments in taxonomy, threatening processes and research further underscore the need for reassessment 3,4 . Here we report the findings of the second Global Amphibian Assessment, evaluating 8,011 species for the International Union for Conservation of Nature Red List of Threatened Species. We find that amphibians are the most threatened vertebrate class (40.7% of species are globally threatened). The updated Red List Index shows that the status of amphibians is deteriorating globally, particularly for salamanders and in the Neotropics. Disease and habitat loss drove 91% of status deteriorations between 1980 and 2004. Ongoing and projected climate change effects are now of increasing concern, driving 39% of status deteriorations since 2004, followed by habitat loss (37%). Although signs of species recoveries incentivize immediate conservation action, scaled-up investment is urgently needed to reverse the current trends.