Question: Structural equation modelling (SEM) using the partial least squares (PLS) technique has been carried out. PLS was used to evaluate the hypothesised paths after assessing

Structural equation modelling (SEM) using the partial least squares (PLS) technique has been carried out. PLS was used to evaluate the hypothesised paths after assessing the reliability and validity of the individual items and integrating the variables into standardised tests. You are required to interpret the tables below and the final structural model.

(i) Convergent validity (2 Marks)

Construct

Average variance extracted (AVE)

Performance

0.8492

Cost

0.6359

Vendor Support

0.6242

User Friendly

0.7186

Table 1: Convergent Validity

(ii) Construct validity (2 Marks)

Construct

Cronbach's alpha()

Performance

0.8244

Cost

0.7197

Vendor Support

0.7602

User Friendly

0.8054

Table 2: Construct Reliability

(iii) Discriminant validity (2 Marks)

Construct

Performance

Cost

Vendor Support

User Friendly

Performance

0.8492

Cost

0.6105

0.6359

Vendor Support

0.5326

0.5067

0.6242

User Friendly

0.6637

0.6137

0.5399

0.7186

Table 3: Fornell- Larcker Criterion

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