I have run my measurement model and I am aware that the outer loading has to be more than 0.7. Can it be acceptable if the loading more than 0.4? Any references?
A General guideline you may refer to T Ramayah's book (pg61). If Analysis impact on indikator deletion on AVE and CR. a) if deletion improves measures above thrrshold>delete the Reflective indicator b) if measures have met the thrrshold >retain the indicators.
Check this out:
https://www.smartpls.com/resources/ebook_on_pls-sem.pdf
Well, i would drop anything lower than 0.7 , lower loadings mean that indicator has not much in common with the factor its loaded into. %51 of the variance shouldnt be come from somewhere else. It will probably distract the AVE scores if other loadings in the same latent variable are not heavily loaded. To sum, people spend too much effort and time to suggest threshold scores and publish papers to help researchers. So i guess we should count on them. Good luck.
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