Advancing formative measurement models

Journal of Business Research

Volumn 61, Issue 12, 2008, Pages 1203-1218

  Diamantopoulos, Adamantios ^a   Riefler, Petra ^a   Roth, Katharina P ^a  

^a UNIVERSITY OF VIENNA   (Austria)

Author keywords

Causal indicators; Formative index; Measurement model

Indexed keywords

EID: 49249094078     PISSN: 01482963     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbusres.2008.01.009     Document Type: Review

References (107)

1. Albers S., and Götz O. Messmodelle mit Konstrukten zweiter Ordnung in der betriebswirtschaftlichen Forschung. Betriebswirtschaft 66 6 (2006) 669-677
2. Albers S., and Hildebrandt L. Methodische Probleme bei der Erfolgsfaktorenforschung - Messfehler, formative versus reflective Indikatoren und die Wahl des Strukturgleichungs-Modells. Zfbf 58 (2006) 2-33
3. Anderson J., and Gerbing D. Some methods for respecifying measurement models to obtain unidimensional construct measurement. J Mark Res 19 4 (1982) 453-460
4. Arnett D.B., Laverie D.A., and Meiers A. Developing parsimonious retailer equity indexes using partial least squares analysis: a method and applications. J Retail 79 (2003) 161-170
5. Bagozzi R.P. A prospectus for theory construction in marketing. J Mark 48 (1984) 11-29
6. Bagozzi R.P. Structural equation models in marketing research: basic principles. In: Bagozzi R.P. (Ed). Principles of marketing research (1994), Blackwell, Oxford 317-385
7. Bagozzi R.P. On the meaning of formative measurement and how it differs from reflective measurement: comment on Howell, Breivik, and Wilcox. Psychol Methods 12 2 (2007) 229-237
8. Bagozzi R.P., and Heatherton T.F. A general approach to representing multifaceted personality constructs: application to state self-esteem. Struct Equ Modeling 1 1 (1994) 35-67
9. Blalock H.M. Causal inferences in nonexperimental research (1964), University of North Carolina Press, Chapel Hill
10. Blalock H.M. Theory building and causal inferences. In: Blalock H.M., and Blalock A. (Eds). Methodology in social research (1968), McGraw-Hil, New York 155-198
11. Blalock H.M. Causal models involving unobserved variables in stimulus-response situations. In: Blalock H.M. (Ed). Causal models in the social sciences (1971), Aldine, Chicago 335-347
12. Bollen K. Multiple indicators: internal consistency or no necessary relationship?. Qual Quant 18 (1984) 377-385
13. Bollen K. Structural equations with latent variables (1989), Wiley, New York
14. Bollen K., and Lennox R. Conventional wisdom on measurement: a structural equation perspective. Psychol Bull 110 2 (1991) 305-314
15. Bollen K. Latent variables in psychology and the social sciences. Annu Rev Psychol 53 (2002) 605-634
16. Bollen K. Interpretational confounding is due to misspecification, not to type of indicator: comment on Howell, Breivik, and Wilcox. Psychol Methods 12 2 (2007) 219-228
17. Bollen K., and Ting K. Confirmatory tetrad analysis. In: Marsden P.V. (Ed). Sociological methodology (1993), American Sociological Association, Washington, D.C 147-175
18. Bollen K., and Davis W. Causal indicator models: identification, estimation, and testing. Paper presented at the American Sociological Association Convention, Miami (1994)
19. Bollen K., and Ting K. A tetrad test for causal indicators. Psychol Methods 5 1 (2000) 3-22
20. Brewer P. Operationalizing psychic distance: a revised approach. J Int Mark 15 1 (2007) 44-66
21. Brock J.K., and Zhou Y. Organizational use of the internet - scale development and validation. Internet Res 15 1 (2005) 67-87
22. Bruhn M., Georgi D., and Hadwich K. Customer equity management as a formative second-order construct. Journal of Business Research 61 (2008) 1292-1301 10.1016/j.jbusres.2008.01.016 (this issue)
23. Cadogan J.W., Souchon A.L.., and Procter D.B. The quality of market-oriented behaviors: formative index construction and validation. Journal of Business Research 61 (2008) 1263-1277 10.1016/j.jbusres.2008.01.014 (this issue)
24. Cantaluppi G. Some further remarks on parameter identification of structural equation models with both formative and reflexive relationships. In: A.A., and V.V. (Eds). Studi in onore di Angelo Zanella (2002), Vita e Pensiero, Milano 89-104
25. Cantaluppi G. The problem of parameter identification of structural equation models with both formative and reflexive relationships: some theoretical results. Serie Edizioni Provvisorie 2002b; No. 108, Istituto di Statistica, Università Cattolica del S. Cuore, Milano:1-19.
26. Carmines E.G., and Zeller R.A. Reliability and validity assessment. In: Sullivan J.L. (Ed). Quantitative applications in the social sciences (1979), Sage, Beverly Hills
27. Churchill G.A. A paradigm for developing better measures of marketing constructs. J Mark Res 16 (1979) 64-73
28. Cohen P., Cohen J., Teresi J., Marchi M., and Velez C.N. Problems in the measurement of latent variables in structural equations causal models. Appl Psychol Meas 14 (1990) 183-196
29. Collier J.E., and Bienstock C.C. Measuring service quality in e-retailing. J Serv Res 8 3 (2006) 260-275
30. Curtis R.F., and Jackson E.F. Multiple indicators in survey research. Am J Sociol 68 (1962) 195-204
31. DeVellis R.F. Scale development - theories and applications. Applied social research methods series. 2nd edition (2003), Sage Publications
32. Diamantopoulos A. Viewpoint: export performance measurement: reflective versus formative indicators. Int Mark Rev 16 6 (1999) 444-457
33. Diamantopoulos A. The C-OAR-SE procedure for scale development in marketing: a comment. Int J Res Mark 22 (2005) 1-9
34. Diamantopoulos A. The error term in formative measurement models: interpretations and modelling implications. J Modell Manage 1 1 (2006) 7-17
35. Diamantopoulos A., and Winklhofer H. Index construction with formative indicators: an alternative to scale development. J Mark Res 38 2 (2001) 269-277
36. Diamantopoulos A., and Siguaw J. Formative versus reflective indicators in organizational measure development: a comparison and empirical illustration. Br J Manage 17 4 (2006) 263-282
37. Dowling G. Journalists' evaluation of corporate reputations. Corp Reputation Rev 7 2 (2004) 196-205
38. Duncan O.D. Notes on social measurement: historical and critical (1984), Russell Sage, New York
39. Eberl M. Formative und reflektive Konstrukte und die Wahl des Strukturgleichungsverfahrens. Betriebswirtschaft 66 6 (2006) 651-668
40. Eberl M., and Schwaiger M. Corporate reputation: disentangling the effects on financial performance. Eur J Mark 39 (2005) 838-854
41. Edwards J.R. Multidimensional constructs in organizational behavior research: an integrative analytical framework. Organ Res Methods 4 2 (2001) 144-192
42. Edwards J.R., and Bagozzi R. On the nature and direction of relationships between constructs and measures. Psychol Methods 5 2 (2000) 155-174
43. Eggert A., and Fassot G. Zur Verwendung formativer and reflektiver Indikatoren in Strukturgleichungsmodellen. Kaiserslaut Schr reihe Mark 20 (2003) 1-18
44. Fassot G. Operationalisierung latenter Variablen in Strukturgleichungsmodellen: Eine Standortbestimmung. Zfbf 58 (2006) 67-88
45. Fassot A., and Eggert G. Zur Verwendung formativer und reflektiver Indikatoren in Strukturgleichungsmodellen: Bestandaufnahme und Anwendungsempfehlung. In: Bliemel F.W., Eggert A., Fassot G., and Henseler J. (Eds). Handbuch PLS-Modellierung, Methode, Anwendung, Praxisbeispiele (2005), Schaeffer-Poeschel, Stuttgart 31-47
46. Fayers P.M., Hand D.J., Bjordal K., and Groenvold M. Causal indicators in quality of life research. Qual Life Res 6 (1997) 393-406
47. Fornell C., and Larcker D.F. Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18 (1981) 39-50
48. Fornell C., and Bookstein F.L. A comparative analysis of two structural equation models: LISREL and PLS applied to market data. In: Fornell C. (Ed). A second generation of multivariate analysis vol. 1 (1982), Praeger, New York 289-324
49. Fornell C., Rhee B.D., and Yi Y. Direct regression, reverse regression, and covariance structure analysis. Mark Lett 2 3 (1991) 309-320
50. Franke G., Preacher C., and Rigdon E. The proportional structural effects of formative indicators. Journal of Business Research 61 (2008) 1229-1237 10.1016/j.jbusres.2008.01.011 (this issue)
51. Gardner D., Cummings L., Dunham R., and Pierce J. Single-item versus multiple-item measurement scales: an empirical comparison. Educ Psychol Meas 58 6 (1998) 898-915
52. Giere J., Wirtz B., and Schilke O. Mehrdimensionale Konstrukte: Konzeptionelle Grundlagen und Möglichkeiten ihrer Analyse mithilfe von Strukturgleichungsmodellen. Betriebswirtschaft 66 6 (2006) 678-695
53. Götz O., and Liehr-Gobbers K. Analyse von Strukturgleichungsmodellen mit Hilfe der Partial-Least-Squares(PLS)-Methode. Betriebswirtschaft 64 6 (2004) 714-738
54. Gudergan S.P., Ringle C.M., Wende S., and Will A. Confirmatory tetrad analysis for evaluating the mode of measurement models in PLS path modeling. Journal of Business Research 61 (2008) 1238-1249 (this issue)
55. Hair J.F., Anderson R.E., Tatham R.L., and Black W.C. Multivariate data analysis (1998), Prentice Hall, New Jersey
56. Hauser R.M. Diaggregating a social-psychological model of educational attainment. In: Goldberger A.S., and Duncan O.D. (Eds). Structural equation models in the social sciences (1973), Academic Press, San Diego 255-289
57. Hauser R.M., and Goldberger A.S. The treatment of unobservable variables in path analysis. Sociol Method (1971) 81-117
58. Heise DR. Employing nominal variables, induced variables, and block variables in path analysis 1972; 1:147-173.
59. Helm S. Designing a formative measure for corporate reputation. Corp Reputation Rev 8 2 (2005) 95-109
60. Hitt M.A., Gimeno J., and Hoskisson R.E. Current and future research methods in strategic management. Organ Res Methods 1 (1998) 6-44
61. Homburg C., and Klarmann M. Die Kausalanalyse in der empirischen betriebswirtschaftlichen Forschung - Problemfelder und Anwendungsempfehlungen. Betriebswirtschaft 66 6 (2006) 727-748
62. Homburg C., Workman J.P., and Krohmer H. Marketing's influence within the firm. J Mark 63 2 (1999) 1-17
63. Homburg C., Hoyer W., and Fassnacht M. Service orientation of a retailer's business strategy: dimensions, antecedents, and performance outcomes. J Mark 66 4 (2002) 86-101
64. Howell R.D., Breivik E., and Wilcox J.B. Reconsidering formative measurement. Psychol Methods 12 2 (2007) 205-218
65. Howell R.D., Breivik K., and Wilcox J.B. Questions about formative measurement. Journal of Business Research 61 (2008) 1219-1228 10.1016/j.jbusres.2008.01.010 (this issue)
66. Hulland J. Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strateg Manage J 20 (1999) 195-204
67. Hyman M., Ganesh G., and McQuitty S. Augmenting the household influence construct. J Mark Theory Pract 10 3 (2002) 13-31
68. Jarvis C., MacKenzie S., and Podsakoff P.A. Critical review of construct indicators and measurement model misspecification in marketing and consumer research. J Consum Res 30 2 (2003) 199-218
69. Johansson J.K., and Yip G.S. Exploiting globalization potential: U.S. and Japanese strategies. Strateg Manage J 15 8 (1994) 579-601
70. Johnson G.J., Bruner II G.C., and Kumar A. Interactivity and its facets revisited. J Advert 35 4 (2006) 35-52
71. Jöreskog K., and Goldberger A. Estimation of a model with multiple indicators and multiple causes of a single latent variable. J Am Stat Assoc 10 (1975) 631-639
72. Judge T.A., and Bretz R.D. Person-organization fit and the theory of work adjustment: implications for satisfaction, tenure, and career success. J Vocat Behav 44 1 (1994) 32-54
73. Kennedy P.A. Guide to econometrics. 5th edition (2003), MIT Press, Boston
74. Land K. On estimation of path coefficients for unmeasured variables from correlations among observed variables. Soc Forces 48 (1970) 506-511
75. Law K., and Wong C. Multidimensional constructs in structural equation analysis: an illustration using the job perception and job satisfaction constructs. J Manage 25 2 (1999) 143-160
76. Law K.S., Wong C.S., and Mobley W.H. Toward a taxonomy of multidimensional constructs. Acad Manage Rev 23 4 (1998) 741-755
77. Lin C.H., Sher P.J., and Shih H.Y. Past progress and future directions in conceptualizing customer perceived value. Int J Serv Ind Manag 16 4 (2005) 318-336
78. Long J.S. Confirmatory factor analysis: a preface to LISREL (1983), Sage Publications, Bloomington, IN
79. Lord F.M., and Novick M.R. Statistical theories of mental test scores (1968), Addison-Wesely, Reading, MA
80. MacCallum R., and Browne M. The use of causal indicators in covariance structure models: some practical issues. Psychol Bull 114 3 (1993) 533-541
81. MacKenzie S.B. The danger of poor construct conceptualization. J Acad Mark Sci 31 3 (2003) 323-326
82. MacKenzie S., Podsakoff P., and Jarvis C. The problem of measurement model misspecification in behavioural and organizational research and some recommended solutions. J Appl Psychol 90 4 (2005) 710-730
83. Namboodiri N.K., Carter L.F., and Blalock H.M. Applied multivariate analysis and experimental designs (1975), McGraw-Hill, New York
84. Netemeyer R.G., Bearden W.O., and Sharma S. Scaling procedures (2003), Sage, CA
85. Nunnally J.C. Psychometric theory. 2nd edition (1978), McGraw-Hill, New York
86. Nunnally J.C., and Bernstein I.H. Psychometric theory. 3rd edition (1994), McGraw-Hill, New York
87. Pavlou P., and Gefen D. Psychological contract violation in online marketplaces: antecedents, consequences, and moderating role. Inf Syst Res 16 4 (2005) 372-399
88. Podsakoff P.M., MacKenzie S.B., Podsakoff N.P., and Lee J.Y. The mismeasure of man(agement) and its implications for leadership research. Leadersh Q 14 (2003) 615-656
89. Podsakoff N.P., Shen W., and Podsakoff P.M. The role of formative measurement models in strategic management research: review, critique, and implications for future research. Res Methodol Strat Manag 3 (2006) 197-252
90. Reinartz W., Krafft M., and Hoyer W.D. The customer relationship management process: Ist measurement and impact on performance. J Mark Res 41 3 (2004) 293-305
91. Rossiter J. The C-OAR-SE procedure for scale development in marketing. Int J Res Mark 19 (2002) 305-335
92. Ruiz D.M., Gremler D.D., Washburn J.H., and Capeda-Carrion G. Service value revisited: specifying a higher-order, formative measure. Journal of Business Research 61 (2008) 1278-1291 10.1016/j.jbusres.2008.01.015 (this issue)
93. Sànchez-Pérez M., and Iniesta-Bonillo M. Consumers felt commitment towards retailers: index development and validation. J Bus Psychol 19 2 (2004) 141-159
94. Santosa P.I., Wei K.K., and Chan H.C. User involvement and user satisfaction with information-seeking activity. European Journal of Information Systems: including a special section on the Pacific Asia conference vol. 14(4) (2005) 361-370
95. Scholderer J., and Balderjahn I. Was unterscheidet harte und weiche Strukturgleichungsmodelle nun wirklich?. Mark ZFP 28 1 (2006) 57-70
96. Spector P.E. Summated rating scale construction: an introduction. Series: quantitative applications in the social sciences (1992), Sage Publications, CA
97. Temme D. Die Spezifikation und Identifikation formativer Messmodelle der Marketingforschung in Kovarianzstrukturanalysen. Mark ZFP 28 3 (2006) 183-209
98. Ulaga W., and Eggert A. Value-based differentiation in business relationships: gaining and sustaining key supplier status. J Mark 70 1 (2006) 119-136
99. Venaik S., Midgley D.F., and Devinney T.M. A new perspective on the integration-responsiveness pressures confronting multinational firms. Manag Int Rev 44 Special Issue 2004/1 (2004) 15-48
100. Venaik S., Midgley D.F., and Devinney T.M. Dual paths to performance: the impact of global pressures on MNC subsidiary conduct and performance. J Int Bus Stud 36 6 (2005) 655-675
101. Wiley J. Reflections on formative measures: conceptualization and implication for use. ANZMAC Conference, Perth; December 5-7 (2005)
102. Williams L.J., Edwards J.R., and Vandenberg R.J. Recent advances in causal modeling methods for organizational and management research. Journal of Management 29 6 (2003) 903-936
103. Williams L.J., Gavin M.B., and Hartman N.S. In: Ketchen D.J., and Berg D.D. (Eds). Structural equation modeling methods in strategy research: applications and issues. Research Methodology in Strategy Management vol. 1 (2004), Elsevier, Boston, MA 303-346
104. Winklhofer H., and Diamantopoulos A. Managerial evaluation of sales forecasting effectiveness: a MIMIC model approach. Int J Res Mark 19 (2002) 151-166
105. Witt P., and Rode V. Corporate brand building in start-ups. J Enterp Cult 13 3 (2005) 273-294
106. Yi M.Y., and Davis F.D. Developing and validating an observational learning model of computer software training and skill acquisition. Inf Syst Res 14 2 (2003) 146-169
107. Zeller R.A., and Carmines E.G. Measurement in the social sciences - the link between theory and data (1980), Cambridge University Press, CA