Service research is characterized by complex theoretical frameworks involving latent variables (constructs), complex structural relationships, including higher-order models, and a growing emphasis on prediction. Under these conditions, partial least squares structural equation modeling (PLS-SEM) has gained increasing prominence as a methodological approach well suited to provide answers to research questions in the service domain. As a result, PLS-SEM has become widely adopted across a broad spectrum of applications in the service domain.
These applications span technology-enabled services—such as consumers' responses to service robots, smart voice assistants, AI-based services, and chatbots—as well as market-related phenomena, including ownership perceptions in the sharing economy. Moreover, PLS-SEM has been extensively used to examine employee- and organization-related issues, such as frontline employee characteristics and servitization, service failure and recovery, employee–AI collaboration, customer experience management, value co-creation, and leadership styles.
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