Which SEM to Use and What to Report? A Comparison of CB-SEM and PLS-SEM

In recent years, the use of structural equation modeling (SEM) has become widespread in tourism and hospitality research. Because there are two different approaches to SEM (i.e., covariance-based SEM and variance-based, partial least squares SEM), this brings challenges for researchers about which SEM to use and what to report in each SEM approach. Therefore, the purpose of this chapter is to discuss the differences between CB-SEM and PLS-SEM and to provide comprehensive guidelines for researchers on how to apply each SEM. Within this context, the authors first briefly summarize the fundamentals and advantages of using SEM. Then, the authors explain in detail the major issues that should be considered when selecting between CB-SEM and PLS-SEM. Finally, to ensure rigorous research practices, the authors provide step-by-step guidelines for the application of both CB-SEM and PLS-SEM.