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Discriminant Validity Assessment: Use of Fornell & Larcker criterion versus HTMT Criterion
Open accessAbstract
Assessment of discriminant validity is a must in any research that involves latent variables for the prevention of multicollinearity issues. Fornell and Larcker criterion is the most widely used method for this purpose. However, a new method has emerged for establishing the discriminant validity assessment through heterotrait-monotrait (HTMT) ratio of correlations method. Therefore, this article presents the results of discriminant validity assessment using these methods. Data from previous study was used that involved 429 respondents for empirical validation of value-based excellence model in higher education institutions (HEI) in Malaysia. From the analysis, the convergent, divergent and discriminant validity were established and admissible using Fornell and Larcker criterion. However, the discriminant validity is an issue when employing the HTMT criterion. This shows that the latent variables under study faced the issue of multicollinearity and should be looked into for further details. This also implied that the HTMT criterion is a stringent measure that could detect the possible indiscriminant among the latent variables. In conclusion, the instrument which consisted of six latent variables was still lacking in terms of discriminant validity and should be explored further.
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“Nevertheless, according to Hamid et al. [59], 'Fornell and Larcker criterion and the assessment of the cross-loadings are inadequately sensitive in detecting discriminant validity when compared with Heterotrait-Monotrait (HTMT) criterion.”
From Are You Environmentally Conscious Enough to Differentiate between Greenwashed and Sustainable Items? A Global Consumers Perspective (2020) · cites this paper as [59]
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“50] [1], and the loading of each item exceeded the acceptable level of 0.”
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“[35], which included seven dimensions (portability, utility, reliability, efficiency, maintainability, understandability, and modifiability).”
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Jung, T. H., Bae, S., Moorhouse, N., & Kwon, O. (2021) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2021.102575 · Cited by 80
Digital Literacy of Smallholder Farmers in Tanzania
Magesa, M., Jonathan, J., & Urassa, J. (2023) · Sustainability · doi:10.3390/su151713149 · Cited by 61
“Discriminant validity exists if the correlation value between the two constructs is less than the square root of the AVE value [68].”
BackgroundInfluentialKhan, M. A., & Alhumoudi, H. A. (2022) · Sustainability · doi:10.3390/su14127224 · Cited by 61
“In accordance with [46], when using any online service, a consumer must first verify the source’s authenticity, impartiality and protection of individual details.”
BackgroundUllah, Z., Otero, S. Á., Sulaiman, M. A. B. A., Sial, M. S., Ahmad, N., Scholz, M., & Omhand, K. (2021) · Sustainability · doi:10.3390/su13105611 · Cited by 64
“According to [83] the Fornell–Larcker criterion, a concept or construct would explain the variance of its indicators better than the variance of other constructs of a model [82].”
BackgroundMethodE-Money Payment: Customers’ Adopting Factors and the Implication for Open Innovation
Widayat, W., Masudin, I., & Satiti, N. R. (2020) · Journal of Open Innovation: Technology, Market and Complexity · doi:10.3390/joitmc6030057 · Cited by 60
“A HTMT value of 1 indicates that the variable is invalid [42,43].”
BackgroundTrust, distrust, and crowdfunding: A study on perceptions of institutional mechanisms
Strohmaier, D., Zeng, J., & Hafeez, M. (2019) · Telematics and Informatics · doi:10.1016/j.tele.2019.101252 · Cited by 71
She, R., Mo, P. K. H., Li, J., Liu, X., Jiang, H., Chen, Y., Ma, L., & Lau, J. T. F. (2022) · Computers in Human Behavior · doi:10.1016/j.chb.2022.107555 · Cited by 76
King, D. R., Bauer, F., Weng, Q. D., Schriber, S., & Tarba, S. Y. (2019) · Human Resource Management · doi:10.1002/hrm.21973 · Cited by 66
Structural equation modeling of critical success factors in the programs of development regional
Al-Zwainy, F. M. S., & Al-Marsomi, M. S. K. (2023) · Journal of Project Management · doi:10.5267/j.jpm.2022.11.002 · Cited by 59
“This assessment aims to examine the relationship between dependent and IV (Ab Hamid et al., 2017), and the significant steps to assess the structural model are presented in different figures.”
Coupling green hydrogen production to community benefits: A pathway to social acceptance?
Gordon, J. A., Balta-Ozkan, N., Haq, A., & Nabavi, S. A. (2024) · Energy Research & Social Science · doi:10.1016/j.erss.2024.103437 · Cited by 58
Gamil, Y., & Rahman, I. A. (2021) · Journal of Facilities Management · doi:10.1108/jfm-04-2021-0039 · Cited by 103
“The criterion of Fornell and Larcker stated that the latent variable must explain a better variance of its indicator than the variance of other latent variables (Ab Hamid et al., 2017).”
BackgroundFactors influencing customer citizenship behaviour in the hospitality industry
Hossain, M. S., Sambasivan, M., Abuelhassan, A. E., & Khalifa, G. S. A. (2020) · Annals of Leisure Research · doi:10.1080/11745398.2020.1850302 · Cited by 74
Metadata
- Authors
- Ab Hamid, M. R., Sami, W., & Mohmad Sidek, M. H.
- Affiliations
- Universiti Malaysia Pahang Al-Sultan Abdullah (MY)
- ORCID
- Sami, W
- Venue
- Journal of Physics: Conference Series
- Publisher
- IOP Publishing
- Published
- 2017-09
- Volume
- 890
- Pages
- 012163
- ISSN
- 1742-6588 (ISSN-L)
- 1742-6596
- OpenAlex
- W2757330327
- Cited by
- 1,478
- References
- 17
- Citations by year
- 2026: 230 · 2025: 282 · 2024: 307 · 2023: 243 · 2022: 190 · 2021: 135 · 2020: 61 · 2019: 22 · 2018: 5 · 2017: 1
- FWCI
- 35.75
- Type
- conference paper
- Language
- en
- Open access
- diamond
- doi.org
- Licence
- Locations
- Journal of Physics Conference Series (publishedVersion, cc-by)
- Topics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Psychometric Methodologies and Testing
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Management Research
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Applications
- Keywords
- discriminant validity, HTMT, multicollinearity, latent variables, higher education institutions, convergent validity
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