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The measurement model does not contain any redundant formative indicators: the Variance Inflation Factor (VIF) indicating multi-colinearity was calculated for all indices.
According to Hair et al. (2014), we assessed the reliability and convergent and discriminant validity of the formative construct AEA by testing: (1) collinearity (indication of high correlations between formative indicators), and (2) indicator validity.
Though the results quantitatively indicate the minor relevance of four formative indicators they did not have to be excluded since the Expert Panel strongly supported their inclusion from a qualitative point of view [28, 30].
The evaluation of formative indicators aims to support their relevance for the measured construct [30].
The results suggested that AEA exhibited adequate convergent and discriminant validity; therefore, all formative indicators were retained.
Table 11 summarizes weights and significances of the formative indicators for Perceived Usefulness grouped by the corresponding benefit dimension.
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Tolerance represents the amount of variance of one formative indicator not explained by other indicators in the same construct.
A formative indicator's influence is assumed to be significant for a t-value = 1.646 (level of significance α = 10%, degrees of freedom df = 1,000).
Since each formative indicator captures a different aspect of the model, changes in these indicators bring about or "cause" change in their underlying construct [ 66].
This was verified with the variance inflation factor (VIF), based on the guideline that this statistic should not be greater than 3.3 for any formative indicator [ 71].d As shown in Table 5, this condition held for all six indicators.
10 12 Latent variables, for example, SES, are typically defined as the common variance in their reflective indicators, such as occupation, income and house tenure, but they might be more appropriately specified as a linear function of formative indicator variables 11 13 (figure 1).
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CEO of Professional Science Editing for Scientists @ prosciediting.com