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Table 4 Measurement model valuation

From: Assessing the impact of corporate entrepreneurship in the financial performance of subsidiaries of Colombian business groups: under environmental dynamism moderation

Latent variable Indicators Convergent validity Internal consistency reliability Discriminant validity
Loadings Indicator reliability AVEc Composite reliability Cronbach’s alpha  
>0.70 >0.50 >0.50 0.60–0.90 0.60–0.90 HTMTd confidence interval does not include 1
AGa AG1b 0.939 0.882 0.7838 0.8784 0.7381 Yes
AG2 0.828 0.686
RT RT1 0.900 0.810 0.8111 0.9280 0.8836 Yes
RT2 0.913 0.834
RT3 0.889 0.790
IN IN1a 0.857 0.734 0.7055 0.9052 0.8595 Yes
IN1b 0.877 0.769
IN2a 0.871 0.759
IN2b 0.749 0.561
AU AU1 0.843 0.711 0.6505 0.8814 0.8206 Yes
AU2 0.808 0.653
AU4 0.757 0.573
AU6 0.816 0.666
PR PR1a 0.890 0.792 0.7894 0.9374 0.9107 Yes
PR1b 0.923 0.852
PR1c 0.847 0.717
PR2a 0.891 0.794
BC BC2 0.811 0.658 0.6334 0.8959 0.8543 Yes
BC3 0.818 0.669
BC4 0.702 0.493
BC5 0.829 0.687
BC6 0.812 0.659
TE TE3 0.773 0.598 0.7024 0.8243 0.5875 No
TE5 0.898 0.806
EG EG1 0.853 0.728 0.6806 0.8949 0.8434 Yes
EG2 0.830 0.689
EG3 0.830 0.689
EG5 0.785 0.616
PI PI1 0.722 0.521 0.6845 0.8962 0.8442 Yes
PI2 0.850 0.723
PI3 0.879 0.773
PI5 0.849 0.721
ED ED2 0.834 0.696 0.6179 0.8288 0.6971 Yes
ED3 0.761 0.579
ED4 0.762 0.581
FP RGN 0.746 0.557 0.5843 0.7375 0.2890 Yes
ROEN 0.782 0.612
  1. Source: computed by the author using SmartPLS 3. Adapted from Hair et al. (2017)
  2. aThe first column includes principal latent variables that are used in this study: aggressiveness (AG), risk-taking (RT), innovativeness (IN), autonomy (AU), proactiveness (PR), business creation (BC), technological entrepreneurship (TE), expansion and growth (EG), product innovation (PI), environmental dynamism (ED), financial performance (FP), revenue growth normalized (RGN), and return on equity normalized (ROEN)
  3. bThe names of the items correspond to the way they are labeled on their measurement scales
  4. cAVE average variance extracted
  5. dHTMT heterotrait-monotrait