HTMT - A New Criterion to Assess Discriminant Validity

The heterotrait-monotrait ratio of correlations (HTMT) is a new method for assessing discriminant validity in partial least squares structural equation modeling, which is one of the key building blocks of model evaluation. If discriminant validity is not established, researchers cannot be certain that the results confirming hypothesized structural paths are real, or whether they are merely the result of statistical discrepancies. The HTMT criterion clearly outperforms classic approaches to discriminant validity assessment such as Fornell-Larcker criterion and (partial) cross-loadings, which are largely unable to detect a lack of discriminant validity.

Length: 11:19 Software: SmartPLS 3 Literature: Hair, J. F., Hult, G. T. M., Ringle, C. M., and Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (3rd ed.). Thousand Oakes, CA: Sage.