Table 1 Used performance measures and targets to validate the measurement model from Hair et al. [9]
Type of validation | Measure | Target |
|---|---|---|
internal consistency / composite reliability | Dillon Goldstein’s rho (alternatives are Cronbach’s alpha and eigenvalues) | > 0.60 are acceptable in exploratory research |
indicator reliability | outer loadings | > 0.708 |
convergent validity | Average Variance Extracted (AVE) | > 0.5 |
discriminant validity | A) outer loadings | A) the outer loading of an observed variable on its concept is higher than its cross loadings with other concepts |
B) Fornell-Larcker criterion | B) the square root of the AVE of a concept should be higher than its correlations with all other concepts |