Component-based Structural Equation Modelling

@inproceedings{Tenenhaus2008ComponentbasedSE,
  title={Component-based Structural Equation Modelling},
  author={Michel Tenenhaus},
  year={2008}
}
Two complementary schools have come to the fore in the field of Structural Equation Modelling (SEM): covariance-based SEM and component-based SEM. The first approach has been developed around Karl Jöreskog and the second one around Herman Wold under the name "PLS" (Partial Least Squares). Hwang and Takane have proposed a new component-based SEM method named Generalized Structured Component Analysis. Covariance-based SEM is usually used with an objective of model validation and needs a large… CONTINUE READING