http://www.babson.edu/entrep/fer/XXXV/XXXVA/html/xxxv-a.htm
Composite reliability is a measure of internal consistency comparable to coefficient alpha (Fornel & Larcker, 1981). However, this measure is superior to Cronbach alpha in that it does not assume equal item loadings (Howell, 1996).
The composite reliability score is: (Σλι)2 / [(Σλι)2+ ΣιVar(εI)], where λι is the indicator loading, and Var(εI)=1-λι2.
Fornel, C., & Larcker, D. F. (1981) Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18: 39–50.
Howell, R. D. (1996) LISREL 8 with PRELIS2 for Windows / EQS for Windows 5.0. Journal of Marketing Research, 33: 377–381.
Werts, C.E., R. L. Linn, and K. G. Joreskog, “Interclass Reliability Estimates: Testing Structural Assumptions,” Education and Psychological Measurement, 34, (1974), pp. 25-3
