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Average Variance Extracted (AVE)

HR & WorkReliability: statistical estimator3 sample items

About this scale

A composite-convergent-validity index: average of squared standardized loadings on a latent factor. AVE ≥ 0.50 indicates that the factor explains more variance in items than measurement error.

Sample item(s)

“Compute squared standardized loadings”
“Average across items”
“AVE ≥ 0.50 supports convergent validity”

Reliability

Reported internal consistency: statistical estimator. As a rule of thumb, Cronbach’s α ≥ .70 is considered acceptable, ≥ .80 good, and ≥ .90 excellent for established measures.

Notes

Foundational AVE / discriminant-validity framework.

Source & citation

Fornell, C., & Larcker, D. F. (1981): Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, Vol. 18, No. 1, pp. 39–50.

Fornell, C., & Larcker, D. F. (1981): Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, Vol. 18, No. 1, pp. 39–50.

Source. Scale details are summarised from the publication cited above. Always consult the original source for the full item set, scoring, and permission to use.

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