Validity Type

Criterion

Description

Literature

Unidimensionality

Exploratory

Factor Analysis (EFA)

The number of selected factors is determined by the numbers of factors with an eigenvalue greater than 1.0.

Gerbing and

Anderson [60]

Internal

Consistency

Reliability

Cronbach Alpha

Should be greater than 0.70 to achieve the reliable of measurement model.

Nunnally [61]

Internal

Consistency

Reliability

Composite

Reliability

Alternative to Cronbach Alpha that attempt to measure the sum of an LV’s factor loadings relative to the sum of the factor loadings plus error variances.

Nunnally and

Bernstein [62]

Indicator

Reliability

Indicator

Loadings

Measures how much of the

indicators variance is explained by the coresponding latent variables.

Chin [63]

Convergent

Validity

Average Variance Extracted (AVE)

Proposed threshold value for AVE should be higher than 0.50.

Fornell and

Larcker [64]

Discriminant

Validity

Fornell-Larcker criterion

The AVE of each latent variable should be greater than the latent variable highest squared correlation with any other latent variable.

Fornell and

Larcker [64]