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A Systems View Across Time and Space

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