HTMT2–an improved criterion for assessing discriminant validity in structural equation modeling

Bibliographic Data

ID23368917
AuthorsEllen Roemer (0000-0002-5337-8870, Ruhr West University of Applied Sciences), Florian Schuberth (0000-0002-2110-9086, University of Twente, corresponding author), Jörg Henseler (0000-0002-9736-3048, University of Twente)
Year2021
Volume121
Issue12
Pages2637-2650
Publication date2021-11-10
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial Management & Data Systems (JOURNAL)
Journal identifiersISSN: 0263-5577 • E-ISSN: 1758-5783
PublisherEmerald (PUBLISHER)
DOI10.1108/imds-02-2021-0082
OpenAlexW3187771925
LanguageEN
Citations received99
References cited27

Purpose One popular method to assess discriminant validity in structural equation modeling is the heterotrait-monotrait ratio of correlations (HTMT). However, the HTMT assumes tau-equivalent measurement models, which are unlikely to hold for most empirical studies. To relax this assumption, the authors modify the original HTMT and introduce a new consistent measure for congeneric measurement models: the HTMT2. Design/methodology/approach The HTMT2 is designed in analogy to the HTMT but relies on the geometric mean instead of the arithmetic mean. A Monte Carlo simulation compares the performance of the HTMT and the HTMT2. In the simulation, several design factors are varied such as loading patterns, sample sizes and inter-construct correlations in order to compare the estimation bias of the two criteria. Findings The HTMT2 provides less biased estimations of the correlations among the latent variables compared to the HTMT, in particular if indicators loading patterns are heterogeneous. Consequently, the HTMT2 should be preferred over the HTMT to assess discriminant validity in case of congeneric measurement models. Research limitations/implications However, the HTMT2 can only be determined if all correlations between involved observable variables are positive. Originality/value This paper introduces the HTMT2 as an improved version of the traditional HTMT. Compared to other approaches assessing discriminant validity, the HTMT2 provides two advantages: (1) the ease of its computation, since HTMT2 is only based on the indicator correlations, and (2) the relaxed assumption of tau-equivalence. The authors highly recommend the HTMT2 criterion over the traditional HTMT for assessing discriminant validity in empirical studies.

Discriminant · Econometrics · Latent variable · Statistics · Structural equation modeling · Artificial Intelligence · Computer Science · Mathematics · Psychometric Methodologies and Testing · Technology Adoption and User Behaviour

Tools

Open DOIOpen Access