Heuristics versus statistics in discriminant validity testing: a comparison of four procedures

Purpose The purpose of this paper is to review and extend recent simulation studies on discriminant validity measures, contrasting the use of cutoff values (i.e. heuristics) with inferential tests. Design/methodology/approach Based on a simulation study, which considers different construct correlations, sample sizes, numbers of indicators and loading patterns, the authors assess each criterion’s sensitivity to type I and type II errors. Findings The findings of the simulation study provide further evidence for the robustness of the heterotrait–monotrait (HTMT) ratio of correlations criterion as an estimator of disattenuated (perfectly reliable) correlations between constructs, whose performance parallels that…