Dear colleagues, linked below is a blog post on the topic:
Will PLS have to become factor-based to survive and thrive?
(The post summarizes an article that demonstrates that minimization of type I and II errors, or false positives and negatives respectively in hypothesis testing, can only happen if latent variables are implemented as factors; and not as composites. Because of this, PLS-SEM will have to become factor-based to survive and thrive.)
https://warppls.blogspot.com/2024/07/will-pls-have-to-become-factor-based-to.htmlBest regards to all!