Table 2

PLS-SEM analysis criteria

Analysis stageAcceptance criteriaSources
1. Measurement Model Assessment
  • -

    Cronbach's alpha ≥0.7 (acceptable reliability)

  • -

    Composite Reliability (CR) ≥ 0.7

  • -

    AVE ≥0.5 - Factor Loadings ≥0.7 (acceptable)

  • -

    VIF <5 (no multicollinearity)

  • -

    f2 values > 0.02 (small effect)

  • -

    q2 values > 0.02 (predictive relevance)

Fornell and Larcker (1981), Henseler et al. (2015), Hair et al. (2012) 
2. Structural Equation Modeling (SEM)
  • -

    R2 (Coefficient of Determination) > 0.1 (significant effect)

  • -

    Path coefficients (β) with p-values <0.05 (statistical significance)

  • -

    IPMA: Importance values above 0.2 (relevant impact)

Hair et al. (2012), Ringle and Sarstedt (2016) 
4. Model Fit Assessment
  • -

    SRMR ≤0.08 (Good Fit)

  • -

    R2 (Coefficient of Determination) > 0.1

Hair et al. (2012), Sarstedt et al. (2020) 
Source(s): Authors’ own work

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