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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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“According to Ab-Hamid et al. (2017) and Hair et al. (2014), discriminant validity is used to measure the multicollinearity in latent TABLE 2 (Continued)”
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“In order to determine whether there is discriminant validity, the HTMT ratio suggested by [51, 77-85] is used.”
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“discriminant validity, which evaluates to what degree two theoretically unrelated constructional measures are truly unrelated, is achieved when the squared correlations (SCs) between paired constructs are lower than the AVE of the individual constructs [61].”
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“According to Hamid, Sami, and Sidek (2017) the HTMT values must be below 0.9 and for better significance confidence interval (CI) were also measured following Lau and Cheung (2012) for which the values were also below 1 as revealed in Table 2. fit for measurement analysis.”
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“…indicators like indicator reliability, rho_A, convergent validity, discriminant validity and internal consistency were used to verification and validation of the measurement model (e.g., Ab Hamid et al., 2017; Chin, 2010; Hair et al., 2016; Lomax and Schumacker, 2004) (Ab Hamid et al., 2017).”
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“Moreover, convergent validity values, CA ≥ 0.80, rho_A ≥ 0.7, AVE ≥ 0.50, and CR ≥ 0.8, are higher than the threshold values (Ab-Hamid et al., 2017).”
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“The acceptability criteria for such matrices include a CR value over 0.7, an AVE value larger than 0.5, and an SFL value greater than 0.6.”
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“For discriminant validity, the heterotrait-monotrait ratio of correlations (HTMT) criterion with a threshold of 0.9 was used [69].”
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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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