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August 21, 2014Journal of the Academy of Marketing ScienceOpen Access

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

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Authors

JHJörg HenselerUniversity of TwenteCRChristian M. RingleUniversity of Technology SydneyMSMarko SarstedtGoethe University Frankfurt

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Implication

Randomized trial assesses discriminant validity in latent variables, suggesting a new evaluation method.

Key Points

  • This research aims to evaluate the reliability of existing methods for assessing discriminant validity in variance-based structural equation modeling.
  • Conducted a simulation study examining the Fornell-Larcker criterion and cross-loadings.
  • Proposed a new method using the heterotrait-monotrait ratio of correlations.
  • Performed a Monte Carlo simulation to compare the new approach against existing methods.
  • The Fornell-Larcker criterion and cross-loadings failed to reliably detect lack of discriminant validity in common situations.
  • The heterotrait-monotrait ratio demonstrated superior performance in identifying discriminant validity issues.
  • Provided guidelines for effectively handling discriminant validity in structural equation modeling.

Cite This Study

Henseler et al. (2014) studied this question.

synapsesocial.com/papers/69c2f7ebca836e53ec544b85https://doi.org/10.1007/s11747-014-0403-8
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