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Abstract

PURPOSES: To briefly present and assess the applications of Structural Equation Modeling (SEM) between Covariance Based–SEM (CB-SEM) and Partial Least Squares-SEM (PLS-SEM) in international business research. METHODS: A documentary research and critical assessment of an article published on an academic journal. RESULTS: Structural Equation Modeling may be classified into 2 main types, i. e. Covariance Based-SEM and Partial Least Squares-SEM. PLS-SEM has received a rising popularity in research application in recent years as compared to the CB-SEM. The main reasons are due to the facts that PLS-SEM requires a smaller sample size, less restriction on multivariate normal distribution of data and a more flexible research objectives, THEORY/ POLICY IMPLICATIONS: Researchers are advised to apply either CB-SEM or PLS-SEM to suit their research objectives.