Search Conferences

Type in any word, words or author name. This searchs through the abstract title, keywords and abstract text and authors. You may search all conferences or just select one conference.


 All Conferences
 EMAC 2019 Annual Conference
 EMAC 2020 Annual Conference
 EMAC 2020 Regional Conference
 EMAC 2021 Annual Conference

EMAC 2021 Annual Conference


Comparing Two Worlds. Theoretical and Empirical Assumptions in Discriminant Validity Testing
(A2021-92931)

Published: May 25, 2021

AUTHORS

Thomas Niemand, Clausthal University of Technology, Institute of Management and Economics, Department of Market Research; Robert Mai, Grenoble Ecole de Management

ABSTRACT

Discriminant validity testing has become a standard procedure for checking as to whether fac-tors or latent variables overlap. Two approaches, the Fornell-Larcker criterion (FLC) and the Heterotrait-monotrait ratio (HTMT), have gained considerable attention in marketing research, but which pursue different conceptual assumptions. The recently proposed HTMT approach adopts an empirical route, whereas FLC follows a theoretical route. We propose that ignoring this distinction provokes misleading conclusions, such that the seeming superiority of HTMT is a result of the empirical assumptions about acceptable factor correlations. This research pin-points that both approaches’ performance strongly depends on the assumptions made. Account-ing for this so-far ignored aspect overturns previous findings, in that FLC outperforms HTMT when pursuing a conservative approach where critical correlations are relatively low (.7), while the opposite is true for stronger acceptable correlations.