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A new criterion for assessing discriminant validity in variance-based structural equation modeling

Journal of the Academy of Marketing Science, 2015-01, Vol.43 (1), p.115-135 [Peer Reviewed Journal]

The Author(s) 2014 ;COPYRIGHT 2015 Springer ;Academy of Marketing Science 2015 ;ISSN: 0092-0703 ;EISSN: 1552-7824 ;DOI: 10.1007/s11747-014-0403-8 ;CODEN: JAMSDE

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  • Title:
    A new criterion for assessing discriminant validity in variance-based structural equation modeling
  • Author: Henseler, Jörg ; Ringle, Christian M. ; Sarstedt, Marko
  • Subjects: Analysis ; Business and Management ; Discriminant analysis ; Economic models ; Marketing ; Methodological Paper ; Monte Carlo simulation ; Research methodology ; Researchers ; Social Sciences ; Strategic management ; Structural equation modeling ; Studies ; Validation studies ; Validity ; Variables
  • Is Part Of: Journal of the Academy of Marketing Science, 2015-01, Vol.43 (1), p.115-135
  • Description: Discriminant validity assessment has become a generally accepted prerequisite for analyzing relationships between latent variables. For variance-based structural equation modeling, such as partial least squares, the Fornell-Larcker criterion and the examination of cross-loadings are the dominant approaches for evaluating discriminant validity. By means of a simulation study, we show that these approaches do not reliably detect the lack of discriminant validity in common research situations. We therefore propose an alternative approach, based on the multitrait-multimethod matrix, to assess discriminant validity: the heterotrait-monotrait ratio of correlations. We demonstrate its superior performance by means of a Monte Carlo simulation study, in which we compare the new approach to the Fornell-Larcker criterion and the assessment of (partial) cross-loadings. Finally, we provide guidelines on how to handle discriminant validity issues in variance-based structural equation modeling.
  • Publisher: Boston: Springer US
  • Language: English
  • Identifier: ISSN: 0092-0703
    EISSN: 1552-7824
    DOI: 10.1007/s11747-014-0403-8
    CODEN: JAMSDE
  • Source: ProQuest One Psychology
    Springer Nature OA/Free Journals
    ProQuest Central
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