Cross-loading when validity criteria are met
Cross-loading when validity criteria are met
I have two reflective constructs each with four indicators. All indicators show higher loadings (>0.91) with their respective constructs than with the other construct. However, the cross-loadings seem to be high (0.77-0.83) and quite close in magnitude to item loadings. Applied Chin’s suggestion and squared the loadings and cross-loadings. The percentage overlap difference between these items ranges from 19-24. Each of the items share more variance (83%- 95%) with their respective theorized construct than the overlap construct (60-69%). AVE, CR, alpha are all fine and establish adequate convergent and discriminant validity. Nomologically, the two constructs will make up a higher order construct (developed using the two step repeated indicator approach) to be used in a structural model. Should I be concerned about the cross-loadings and drop one of the constructs when convergent and discriminant validity are not in question? or should i combine the two constrcuts into one? All the cross-loading gudies that i have read so far address the issue of cross-loading only when convergent and discriminant validity are not met but i don't seem to find a useful guide when the validty criteria are met.