Discriminant validity assessment in PLS-SEM: A comprehensive composite-based approach

The article below puts forth a comprehensive composite-based perspective on how one can conduct discriminant validity assessment, in the context of structural equation modeling via partial least squares (PLS-SEM).

Rasoolimanesh, S. M. (2022). Discriminant validity assessment in PLS-SEM: A comprehensive composite-based approach. Data Analysis Perspectives Journal, 3(2), 1-8.

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Abstract:

This paper aims to discuss modern approaches to assess discriminant validity in the context of structural equation modeling via partial least squares (PLS-SEM). It illustrates the application of these approaches using the WarpPLS 7.0 software. The Fornell-Larcker criterion, crossloadings method, heterotrait-monotrait (HTMT) ratio, and full collinearity test have been discussed in this paper. A step-by-step guide is provided to assess discriminant validity using these four tests in WarpPLS 7.0. The first three criteria are applicable for reflective constructs, while the full collinearity test can be applied for both reflective and formative constructs. In different social science disciplines, a combination of reflective and formative constructs is a common practice, therefore reporting the full collinearity test for the assessment of discriminant validity can be an advantage.

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