Review of Management and

4.2. Estimated Evaluation Results Measurement 
Model
The evaluation of the measurement model examines the validity 
and reliability of indicators that measure constructs or latent 
variables. In this study the 6 latent variables are: innovation 
and growth, financial return, investment return, internal factor, 
customer and entrepreneurial intention. The six latent variables 
are measured through a set of measuring instruments with 
reflective indicator measurement models, so in the evaluation of 
the measurement model is done by examining the convergent, 
predicitive, discriminant validity of the indicator, as well as 
composite reliability and alpha cronbach’s for the reliability of 
the indicator block.
From result of data analysis using WarpPLS 4.0 summarized 
result of evaluation of validity and reliability of research model 
instrument (outer model) in the following Table 2.
Evaluation of measurement instruments from validity consists 
of: convergent validity, that the instrument of each indicator of 
the research variable has a value of cross loadings >0.6, and the 
average variance extracted (AVE) value >0.5 indicates the validity 
of variable indicators namely: innovation and growth variable is 
0.592, financial return is 0.641, investment return is 0.649, internal