While performing measurement model analysis in Smart PLS, i found AVE of less than .50 (range between .45 to .49) for two measures in overall model. How could i manage this ? Please Clarify.
Both, average variance extracted (AVE) and composite reliability CR), are necessary in structural equation modeling. General requirements of AVE (>=0.5) and CR (>=0.7).
In your case, according to Forrell & Lacker, 1981, an AVE below .50 could be considered if CR is above .70 .