Linking Bayesian networks and PLS path modeling for causal analysis

Authors:
Wei Wen Wu
Affiliations:
Department of International Trade, Ta Hwa Institute of Technology, 1.Ta Hwa Road, Chiung-Lin, Hsin-Chu 307, Taiwan
Venue:
Expert Systems with Applications: An International Journal
Year:
2010

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Abstract

Causal knowledge based on causal analysis can advance the quality of decision-making and thereby facilitate a process of transforming strategic objectives into effective actions. Several creditable studies have emphasized the usefulness of causal analysis techniques. Partial least squares (PLS) path modeling is one of several popular causal analysis techniques. However, one difficulty often faced when we commence research is that the causal direction is unknown due to the lack of background knowledge. To solve this difficulty, this paper proposes a method that links the Bayesian network and PLS path modeling for causal analysis. An empirical study is presented to illustrate the application of the proposed method. Based on the findings of this study, conclusions and implications for management are discussed.