Indicator reliability is obtained from squaring outer loadings of reflective constructs, and once used together, they give a necessary and sufficient measure of the measurement model, clearly describing the relationship between the latent variables and their measures. In order to use them, first ensure that the outer loadings of the reflective constructs are well above the threshold value of 0.708, from which you obtain the indicator reliability. For example: if a reflective construct’s outer loading is say: 0.763, its indicator reliability will be the value of 0.582 (0.7632) and compare this with the indicator reliability of other reflective constructs to see which one is smallest and which one is highest…before concluding that all of the indicators for all reflective constructs are well above the minimum acceptable level for outer loadings.

Are you talking abut factor loading or reliability. I think reliability is about constructs which means "either the items are reliable or not that were asked by the respondents on the same or different times". To put it into another way, we can say that the items were consistent with each others of the respective constructs.

Regards,

In PLS approach, assessing the measurement model involves testing the validity and reliability of the items in terms of convergent and discriminant validity. As a part of convergent validity test, the items loading OR indicator's reliability must be above the thumb rule of 0.7 to indicate a reliable indicator for a specific construct.

Please refer to:

1. Validity and Reliability of Students and Academic Staff’s Surveys to Improve Higher Education. Educational Alternatives, Journal of International Scientific Publications, 2016, Vol.14, pp. 242-263.

2. Statistical characteristics of performance indicators. Int. J. of Quality and Innovation, 2014, Vol.2, No.3-4, pp. 385-309.

3. Quantitative and qualitative indicators to assess

the performance of higher education institutions. Int. J. of Information and Decision sciences, 2014, Vol.6, No. 4, pp.369-392.

Regards,

Zuhair

Indicator reliability is obtained from squaring outer loadings of reflective constructs, and once used together, they give a necessary and sufficient measure of the measurement model, clearly describing the relationship between the latent variables and their measures. In order to use them, first ensure that the outer loadings of the reflective constructs are well above the threshold value of 0.708, from which you obtain the indicator reliability. For example: if a reflective construct’s outer loading is say: 0.763, its indicator reliability will be the value of 0.582 (0.7632) and compare this with the indicator reliability of other reflective constructs to see which one is smallest and which one is highest…before concluding that all of the indicators for all reflective constructs are well above the minimum acceptable level for outer loadings.

Cronbach's alpha, Composite reliability, Average Variance Extracted (AVE)