Standardized Construct Reliably Construct Validity

Factor Loading Cronbach’s Composite Convergent Discriminant

(CFA-AMOS) alpha Reliability Validity Validity
Construct/Indicators (CR) Average Maximum Average
Variance Extracted Shared Variance Shared Variance
(AVE) (MSV) (ASV)
Organizational Commitment: 0.882 .887 .723 0.4489 0.3844+.4489/2
Organizational commitment 1 .85 =.4162
Organizational commitment 2 .87
Organizational commitment 3 .83
Promotion: 0.823 0.614 0.4356 .3844+.4318/2=
Promotion 1 .64 .803 0.4162
Promotion 2 .94
Promotion 3 .74
Supervisor’s support: .741 0.739 0.490 .4489 .4356+.4489/2 =
Supervisor’s support 1 .71 .4100
Supervisor’s support 2 .80
Supervisor’s support 3 .57
Reliability and Construct Validity Thresholds: α > 0.70 CR > 0.70 i) AVE > 0.50 MSV < AVE ASV < AVE
[Suggested by Fornell and Larcker (1981)] (Nunnaly,1967) ii) CR > AVE

2
 n  n
  i   2
i

CR   i 1  , AVE  i 1
2 n n
   n 
 2i   i
n
  i      i 
 i 1   i 1  i 1 i 1

Where λ=Standardized Factor Loading; n=number of items; δ= error variance = (1- multiple correlation coefficient) = 1  2
Share Variance (SV): Square of the Correlation, If the correlation between two variables is “X”, their shared variance will be “ X 2 ”.
Ref: Fornell, Claes and David F. Larker (1981), “Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,”
Journal of Marketing Research, 18, 39-50.