THE PARTIAL LEAST SQUARE (PLS) APPROACH: AN ALTERNATIVE METHOD FOR SEM MODELS ESTIMATION IN HRM

Abstract

Structural equations modelling (SEM) procedures
are widely used today in quantitative research on
HRM, for testing complex models of causality,
incorporating several latent variables. The usual
procedure of estimation of such models is based on
analysis of covariance relations between latent
variables, implemented in widely used software
(Lisrel, Amos, EQS…). The purpose of this article is
to present and discuss an alternative method of SEM
estimation based on analysis of variance: the Partial
Least Square (PLS) analysis.
We will see that this method is suitable for the test
of complex causal models, typical of situations met
in the domain of HRM. In the first section, we
summarized essential traits of the PLS approach.
The second section presents an empirical
application, via the estimation of a research model
of contingent workers commitment. This study was
conducted on a sample of 208 temporary workers.
We can establish an indirect impact of temporary
contracts characteristics on organizational
commitment of the temporary workers. This impact
was mediated by subjective work insecurity.