4th Jan, 2023

University of Kashmir

Question

Asked 29th Jan, 2016

Though AVE value must be greater than 0.5, yet the question is can i go ahead with further calculations if AVE is close to 0.5. (Little less than 0.5)...All other values, like factor loading, SCR, data adequacy etc is coming under the acceptance zone?

I was conducting CFA and results of scale shows CR >70 but AVE <50, is this acceptable,

If your AVE is less than 0.5 but your CR is more than the acceptable level of 0.6, I recommend you to refer to the paper:

Lam, L. W. (2012). Impact of competitiveness on salespeople's commitment and performance. *Journal of Business Research*, *65*(9), 1328-1334.

27 Recommendations

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I *had* previously similar problems, what suggested to me by using one quotation related to AVE is " strict evaluation" for validity analysis. Looking at other reliability values, it would be fine. Hope at least give you an idea.

HI,

I am also facing the same issue of having all model fit indices and other measures of reliability and validity correct but my AVE is low (0.4-0.49) for my constructs. Whereas the cronbach alphas and composite reliabilities are above 0.7. Can anyone provide me a reference as to how to justify the low AVE ? Or anyother method which can help.

1 Recommendation

Nashwan AL-Emad , literature suggest 0.6 as the minimum acceptable value for Cronbach Alpha

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2009). *Multivariate Data Analysis* (7th ed.). Upper Saddle River, New Jersey: Pearson Education Limited.

Average Variance Extracted (AVE) is higher than 0.5 but we can accept 0.4.

Because Fornell and Larcker said that if AVE is less than 0.5,

but composite reliability is higher than 0.6, the convergent

validity of the construct is still adequate (Fornell & Larcker, 1981)

23 Recommendations

If your AVE is less than 0.5 but your CR is more than the acceptable level of 0.6, I recommend you to refer to the paper:

Lam, L. W. (2012). Impact of competitiveness on salespeople's commitment and performance. *Journal of Business Research*, *65*(9), 1328-1334.

27 Recommendations

Muhammad Aamir Saeed I am attaching the fornell and larcker 1981, but I can't see anywhere in this paper the argument that you are attributing to them. Can you pls help.

Thanks

- 701.39 KBfornell and larcker 1981.pdf

5 Recommendations

That passage recommends a minimum VE of 0.5; less than that is "questionable"

3 Recommendations

If p vc() is less than .50, the variance due to measurement error is larger than the variance captured by the construct -q, and the validity of the individual indicators (y,), as well as the construct (-q), **is questionable.**

1 Recommendation

Dear Rohit,

It is strongly recommended to conduct a EFA first to assess the variables you obtained then go on with CFA. In EFA, generally, it is widely accepted that items with factor loadings less than 0.5, and items having high factor loadings more than one factor are discarded from the model. It can filter obtained model via EFA. The final model must fit with the data. All the items after run the CFA give the effect to the factors and the factors is not redundant to each other. Reliability also must be achieved in every measurement model. It could be achieved based on several criteria. If AVE is less than 0.5, but composite reliability is higher than 0.6, convergent validity of the construct is acceptable.

Ashish

2 Recommendations

In case of AVE is less than 0.5 but composite reliability is higher than 0.6, the convergent validity of the construct is still adequate (Fornell & Larcker, 1981).

13 Recommendations

AVE is a strict measure of convergent validity because consideration of CR only will conclude that the convergent validity of a construct is adequate, even if more than 50% of the variance is due to the error.

Malhotra, N. K. (2010). *Marketing Research- An Applied Orientation* (6th ed.). Pearson Education, Inc., publishing as Prentice Hall.

I remember this info.

Psailla & Vagner (2007:61) stated that AVE values above 0.40 are also acceptable.

Psailla, G., & Wagner, R. (2007). E-commerce and web technologies. Austria: Linz, Springer.

2 Recommendations

Thanks, Jiamin Tan and Muhammad Aamir Saeed for your answers!

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