AVE

Frequently asked questions about PLS path modeling.
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mazi
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AVE

Post by mazi »

Hi every one:
I have one question
what does AVE state exactly and why does it use for assessing the indicator reliability and converegent validity
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Diogenes
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Post by Diogenes »

See

Claes Fornell; David F Larcker. (1981). Evaluating structural equation models with unobservable variables and measurement error. JMR, Journal of Marketing Research, 18, p. (pre-1986); Feb 1981; 18(1), 39-50.

“If AVE is less than .50, the variance due to measurement error is larger than the variance captured by the construct…” [p.46].

Best regards,

Bido
mazi
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Post by mazi »

Thank you so much. your answer helped me alot
husseins
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Post by husseins »

what should I do if one of my construct has AVE less than 0.50? is there any treatment?

regard
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Diogenes
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Post by Diogenes »

Hi,

The AVE is “average”, for this reason, if we remove the indicators with lower outer loading, the AVE will increase, but we should do this carefully because the content validity could be jeopardized.

Best regards,

Bido
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