AVE or Square Root of AVE & Significance of Construct Correlations

 Hi Wynne,

 1) AVE or square root of AVE: in the measurement model, should the AVE or the SQRT of the AVE be larger than the correlations between the construct and all other constructs in the table.  I've seen papers that use AVE (e.g., Compeau) and I've seen others that use the SQRT of the AVE (e.g., Igbaria).  Which should it be?

 In my book chapter (edited by Marcoulides), I noted that it should be the square root of AVE.  But if the AVE is already larger than the correlations, then you can bypass taking the square roots since those results will automatically be larger than the AVE.

 2) significances of correlations: how can I get the statistical significance of the correlations between constructs in PLS?

 Good question.  At this point in time, there is no automated solution for calculating the significance non-parametrically. 

 The hard way is to do a bootstrap and physically go thru the boot.lst output file and write down all the correlations, etc.

 I going to put this down as a to do for the software. 

If you use random sampling and bi-variate normality assumptions, you can calculate the significance for each correlation by using the following formula:

 [r-squared*(N-2)] /  [1 - r-squared] and looking up the F table for 1,N-2  degrees of freedom.