In this article:

http://www.ijiet.org/papers/267-IT0040.pdf

found the following:

Average Variance Extracted (AVE) is higher than 0.5 but we can accept 0.4.

Because Fornell and Larcker said that if AVE is less than 0.5,

but composite reliability is higher than 0.6, the convergent

validity of the construct is still adequate (Fornell & Larcker, 1981)

C. Fornell and D. F. Larcker, “Evaluating structural equation models

with unobservable variables and measurement error,” Journal of

marketing research, pp. 39-50, 1981.

In this article:

http://www.ijiet.org/papers/267-IT0040.pdf

found the following:

Average Variance Extracted (AVE) is higher than 0.5 but we can accept 0.4.

Because Fornell and Larcker said that if AVE is less than 0.5,

but composite reliability is higher than 0.6, the convergent

validity of the construct is still adequate (Fornell & Larcker, 1981)

C. Fornell and D. F. Larcker, “Evaluating structural equation models

with unobservable variables and measurement error,” Journal of

marketing research, pp. 39-50, 1981.

Thank You Mr. Han!

Really appreciate it. But i don't understand what Composite Reliability is?

Owh got it. Composite Reliability is the significant / critical ratio of 1.960. Is that correct?

Hi Mohd,

Composite Reliability is usually generated when running Structural Equation Modeling (SEM) test that is the measure for internal consistency of reliability that does not assume equal indicator loadings whereas Cronbach Alpha is the measure of internal consistency of reliability that presume equal indicator loadings (Hair, Hult, Ringle & Sarstedt, 2014).

Composite Reliability is adopted in SEM analysis as its value is usually higher than Cronbach Alpha in which the difference is inconsequential (Peterson & Kim, 2013).

Regards,

Fung

Thank You Mr Han,

I found it and understand it better

Thank you Mr Han for your suggestions in this matter.

Dr. Han. Your suggestion is highly appreciated

Hi Mr Han Ping

I would like to get your opinion about Cronbach Alpha ? what is the minimum accepted value ? Can you please share some articles to support my results because I have obtained from SmartPls analysis for Cronbach Alpha result 0.61, 0.57 & 0.45.

Thank you in advance

Thank you Dr Han. I was in the situation where AVE values were below .5 but CR values are above .8. Your contribution has helped me a lot.

Nashwan AL-Emad , literature suggest 0.6 as the minimum acceptable value for Cronbach Alpha

1. Gliem, J. A., & Gliem, R. R. (2003). Calculating, interpreting, and reporting Cronbach’s alpha reliability coefficient for Likert-type scales. Midwest Research-to-Practice Conference in Adult, Continuing, and Community Education. The Ohio State University, Columbus, OH.

2. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2009). Multivariate Data Analysis (7th ed.). Upper Saddle River, New Jersey: Pearson Education Limited.

3.Kline, R. B. (2011). Principles and practice of structural equation modeling

Thanks for the contribution. It´ll help me on my thesis results.

do I need to calculate both CR & Cronbach Alpha ? or CR is enough

i need your opinions . thank you

Dear all,

sorry to drop in like that but i am trying to understand the meaning of critical value of composite reliability

I am getting always a value of 1

is it important to keep while interepreting my results

what does it mean

thank you

Dear Dr.Han

I do appreciate.

Thank you Mr. Han. I have two AVE values below 0,5 and your suggestion helps me a lot

The acceptable AVE value must be greater than 0.50 .( Fornell & Larcker, 1981 )

The value of AVE depends on the value of factor loading. Therefore, if the AVE value is below 0.5 (Fornell and Larcker, 1981), would be advisable to check the factor loading for each items. Any item has loading below 0.4 should be dropped (see Kline 2005 or Hair et al., 2006 and other statisticians). However, from past experience, if you use SEM, the CFA result would supersede the EFA.