Composite Reliability in Structural Equations Modeling

Two composite reliability measures, coefficient alpha and coefficient omega with unit weights (otherwise known as construct reliability), are commonly used in structural equations modeling. However, a third measure, omega with unequal weights, is more theoretically appropriate. The potential for bias in reliability estimation and for errors in item selection when alpha or unit-weighted omega are used are explored under a variety of simulated conditions. The results suggest that composite reliability may be used as an assessment tool, but should not be used as an item selection tool in structural equations modeling.