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Discriminant Validity Assessment: Use of Fornell & Larcker criterion versus HTMT Criterion

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Ab Hamid, M R, Sami, W, Mohmad Sidek, M H·2017·Journal of Physics: Conference Series

DOI 10.1088/1742-6596/890/1/012163

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Abstract

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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“Further, the results from Table 3 (Source: Gaskin’s Statistical Tools Package) showed that inter-factor correlation in relevant rows and columns did not exceed the square root of AVEs of each construct (Ab Hamid et al., 2017; Fornell & Larcker, 1981), providing support for discriminant validity.”
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“For convergent validity, the AVE value must be more than 0.50 (Ab Hamid, Sami, & Sidek, 2017).”
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“Por otro lado, aunque la mayoría de los factores tenían valores de varianza media extraída inferiores a .5, dado que su FC era superior a .6, se sigue considerando adecuada su validez convergente (Hamid et al., 2017) (Tabla 4).”
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“If the square root of the AVE is higher than the correlation between constructs, then the construct has met the criterion [63].”
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“In this research, the second criterion of discriminant validity HTMT was conducted to determine the construct’s discriminant validity.”
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“When the AVE is higher than the squared latent variable correlations, the discriminant validity is considered to be conﬁrmed [68].”
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“The HTMT matrix analysis shows that all values within a range of 0.613–0.882 are within the threshold of 0.90 (HTMT.90) (Ab Hamid et al., 2017; Teo et al., 2008).”
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“0 indicates the satisfaction of discriminant validity [31,32].”
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“The discriminant validity of the constructs was also achieved by conducting another analysis threshold that has been established to validity were recommended threshold of 0.9 [48].”
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“In this study we adopt the Fornell and Larcker Criterion (Fornell and Larcker 1981 ), the Heterotrait-Monotrait Ratio (HTMT) (Henseler et al. 2015 ), and the Cross-Loading method (Ab Hamid et al. 2017).”
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“…0.90, its sRMR and RMsea are less than 0.08 and χ 2 / df falls below 3 (hoe 2008). convergent validity assesses the agreement among multiple items of the same construct, while a discriminant validity assesses how constructs differ empirically, were evaluated (ab hamid, sami, and sidek 2017).”
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“Moreover, AVE should be above 0.5 and lower than the values of CR (Ab Hamid et al., 2017), which is evident in Table 4.”
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“Discriminant validity is crucial to demonstrate the uniqueness of the model constructs (Ab Hamid et al., 2017).”

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
DOI: 10.1088/1742-6596/890/1/012163
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: cc-by
iopscience.iop.org/info/page/text-and-data-mining (tdm)
creativecommons.org/licenses/by/3.0/ (vor)
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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Discriminant Validity Assessment: Use of Fornell & Larcker criterion versus HTMT Criterion

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