you can use "free from multicollinearity if the value of VIF < 10"

Dear Samanthi Weerabahu,

The normal acceptable level for outer model VIF < 5

The normal acceptable level for inner model VIF < 10.

You can use these criterion for first order, or higher order as well.

Multicollinearity was measured by variance inflation factors (VIF) and tolerance. If VIF value exceeding 4.0, or by tolerance less than 0.2 then there is a problem with multicollinearity (Hair et al., 2010).

There are two approaches for the VIF 1) conservative approach and 2) liberal approach. The threshold of conservative approach is