Using Partial Least Squares and LISREL to Research International Strategies

Abstract

Four studies are described to illustrate the usage of latent variable structural equations modeling in research on internationalization strategies. The first two studies address the relationship between globalization strategies and structure, and the role of national differences. The third and fourth studies describe factors affecting the performance of international strategic alliances. The literature and theoretical reviews are purposely kept brief, as the paper focuses on methodological issues, with the emphasis on how to apply structural equations modeling techniques. The paper specifically compares PLS and LISREL, the two most common structural equations modeling techniques used in empirical testing.