Our results suggest that service innovation performance enhances the banking industry's corporate sustainability. We empirically explore the innovation and corporate sustainability link using a large sample of worldwide banks for the period 2003-2016. By addressing recent findings regarding the HTMT criterion’s superiority in uncovering discriminant validity issues compared to that of the Fornell and Larcker criterion, this study is the first, to the best of the authors’ knowledge, to reexamine the discriminant validity of the well-known CBR scale. Future studies using the CBR scale in either the original or its short form should rely on the more stringent HTMT criterion to ensure the discriminant validity of the scale’s five dimensions. Conversely, the discriminant validity of the five corporate reputation dimensions is generally supported when using the more liberal Fornell and Larcker criterion. This study’s findings demonstrate that the CBR scale in both its original and short forms lacks discriminant validity when using the HTMT-based inference test. Results obtained in partial least squares structural equation modeling for the heterotrait–monotrait (HTMT)-based inference test and the Fornell and Larcker criterion were compared to make judgements about the empirical distinctiveness of the CBR scale’s five dimensions. The authors used data from end-use customers in two countries and two service industries. This study aims to reexamine the discriminant validity of the customer-based corporate reputation (CBR) scale in both its original and short forms.
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