TY  - JOUR
TI  - A new criterion for assessing discriminant validity in variance-based structural equation modeling
AU  - Jörg Henseler
AU  - Christian M. Ringle
AU  - Marko Sarstedt
PY  - 2014
JO  - Journal of the Academy of Marketing Science
DO  - 10.1007/s11747-014-0403-8
UR  - https://doi.org/10.1007/s11747-014-0403-8
AB  - Discriminant validity assessment has become a generally accepted prerequisite for analyzing relationships between latent variables. For variance-based structural equation modeling, such as partial least squares, the Fornell-Larcker criterion and the examination of cross-loadings are the dominant approaches for evaluating discriminant validity. By means of a simulation study, we show that these approaches do not reliably detect the lack of discriminant validity in common research situations. We therefore propose an alternative approach, based on the multitrait-multimethod matrix, to assess discriminant validity: the heterotrait-monotrait ratio of correlations. We demonstrate its superior performance by means of a Monte Carlo simulation study, in which we compare the new approach to the Fornell-Larcker criterion and the assessment of (partial) cross-loadings. Finally, we provide guidelines on how to handle discriminant validity issues in variance-based structural equation modeling.
ER  -