Comparing reflective and formative measures: New insights from relevant simulations

Journal of Business Research

Volumn 69, Issue 8, 2016, Pages 3177-3185

  Chang, Woojung ^a   Franke, George R ^b   Lee, Nick ^c  

^a ILLINOIS STATE UNIVERSITY   (United States)

^b UNIVERSITY OF ALABAMA   (United States)

^c LOUGHBOROUGH UNIVERSITY   (United Kingdom)

Author keywords

Construct specification; Formative measurement; Monte Carlo simulation; Reflective measurement

Indexed keywords

EID: 84961780855     PISSN: 01482963     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbusres.2015.12.006     Document Type: Article

References (38)

1. Aguirre-Urreta M.I., Marakas G.M. Revisiting bias due to construct misspecification: Different results from considering coefficients in standardized form. MIS Quarterly 2012, 36(1):123-138.
2. Anderson J.C., Gerbing D.W., Hunter J.E. On the assessment of unidimensional measurement: Internal and external consistency, and overall consistency criteria. Journal of Marketing Research 1987, 24(4):432-437.
3. Bollen K.A. Structural equations with latent variables 1989, John Wiley & Sons, New York.
4. Bollen K.A., Ting K. A tetrad test for causal indicators. Psychological Methods 2000, 5(1):3-22.
5. Borsboom D. Measuring the mind: Conceptual issues in contemporary psychometrics 2005, Cambridge University Press, Cambridge.
6. Cadogan J.W., Lee N. Improper use of endogenous formative variables. Journal of Business Research 2013, 66(2):233-241.
7. Challagalla G.N., Shervani T.A. A measurement model of the dimensions and types of output and behavior control: An empirical test in a salesforce context. Journal of Business Research 1997, 39(3):159-172.
8. Chang W., Park J.E., Chaiy S. How does CRM technology transform into organizational performance? A mediating role of marketing capability. Journal of Business Research 2010, 63(8):849-855.
9. Coltman T., Devinney T.M., Midgley D.F., Venaik S. Formative versus reflective measurement models: Two applications of formative measurement. Journal of Business Research 2008, 61(12):1250-1262.
10. Diamantopoulos A. Incorporating formative measures into covariance-based structural equation models. MIS Quarterly 2011, 35(2):335-358.
11. Diamantopoulos A., Siguaw J.A. Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British Journal of Management 2006, 17(4):263-282.
12. Diamantopoulos A., Winklhofer H.M. Index construction with formative indicators: An alternative to scale development. Journal of Marketing Research 2001, 38(2):269-277.
13. Edwards J.R., Bagozzi R.P. On the nature and direction of relationships between constructs and measures. Psychological Methods 2000, 5(2):155-174.
14. Fornell C., Rhee B.D., Yi Y. Direct regression, reverse regression, and covariance structure analysis. Marketing Letters 1991, 2(3):309-320.
15. Franke G.R., Preacher K.J., Rigdon E.E. Proportional structural effects of formative indicators. Journal of Business Research 2008, 61(12):1229-1237.
16. Gonzalez R., Griffin D. Testing parameters in structural equation modeling: Every "one" matters. Psychological Methods 2001, 6(3):258-269.
17. Hair J.F., Hult G.T.M., Ringle C.M., Sarstedt M. A primer on partial least squares structural equation modeling (PLS-SEM) 2014, SAGE, Thousand Oaks.
18. Hayduk L.A. Structural equation modeling with LISREL: Essentials and advances 1987, The John Hopkins University Press, Baltimore.
19. Heise D.R. Employing nominal variables, induced variables, and block variables in path analyses. Sociological Methods & Research 1972, 1(2):147-173.
20. Howell R.D. Conceptual clarity in measurement-Constructs, composites, and causes: A commentary on Lee, Cadogan and Chamberlain. AMS Review 2013, 3(1):18-23.
21. Howell R.D., Breivik E., Wilcox J.B. Reconsidering formative measurement. Psychological Methods 2007, 12(2):205-218.
22. Jarvis C.B., MacKenzie S.B., Podsakoff P.M. A critical review of construct indicators and measurement model misspecification in marketing and consumer research. Journal of Consumer Research 2003, 30(2):199-218.
23. Jarvis C.B., MacKenzie S.B., Podsakoff P.M. The negative consequences of measurement model misspecification: A response to Aguirre-Urreta and Marakas. MIS Quarterly 2012, 36(1):139-146.
24. Kara A., Spillan J.E., DeShields O.W. An empirical investigation of the link between market orientation and business performance in nonprofit service providers. Journal of Marketing Theory and Practice 2004, 12(2):59-72.
25. Kenny D.A., Kashy D., Bolger N. Data analysis in social psychology. Handbook of social psychology 1998, 233-265. McGraw-Hill, New York. D. Gilbert, S. Fiske, G. Lindzey (Eds.).
26. Lee N., Cadogan J.W. Problems with formative and higher-order reflective variables. Journal of Business Research 2013, 66(2):242-247.
27. MacCallum R.C., Browne M.W. The use of causal indicators in covariance structure models: Some practical issues. Psychological Bulletin 1993, 114(3):533-541.
28. MacKenzie S.B., Podsakoff P.M., Jarvis C.B. The problem of measurement model misspecification in behavioral and organizational research and some recommended solutions. Journal of Applied Psychology 2005, 90(4):710-730.
29. Markus K.A., Borsboom D. Frontiers of test validity theory: Measurement, causation, and meaning 2013, Routledge, New York.
30. Pedhazur E., Schmelkin L.P. Measurement, design, and analysis: An integrated approach 1991, Erlbaum, Hillsdale.
31. Petter S., Rai A., Straub D. The critical importance of construct measurement specification: A response to Aguirre-Urreta and Marakas. MIS Quarterly 2012, 36(1):147-156.
32. Petter S., Straub D., Rai A. Specifying formative constructs in information systems research. MIS Quarterly 2007, 31(4):623-656.
33. Podsakoff N.P., Shen W., Podsakoff P.M. The role of formative measurement models in strategic management research: Review, critique, and implications for future research. Research methodology in strategy and management 2006, 197-252. Elsevier, Oxford. D.J. Ketchen, D.D. Bergh (Eds.).
34. Reinartz W., Krafft M., Hoyer W.D. The customer relationship management process: Its measurement and impact on performance. Journal of Marketing Research 2004, 41(3):293-305.
35. Rigopoulou I., Theodosiou M., Katsikea E., Perdikis N. Information control, role perceptions, and work outcomes of boundary-spanning frontline managers. Journal of Business Research 2012, 65(5):626-633.
36. Temme D., Diamantopoulos A., Pfegfeidel V. Specifying formatively-measured constructs in endogenous positions in structural equation models: Caveats and guidelines for researchers. International Journal of Research in Marketing 2014, 31(3):309-316.
37. Treiblmaier H., Bentler P.M., Mair P. Formative constructs implemented via common factors. Structural Equation Modeling 2011, 18(1):1-17.
38. Wilcox J.B., Howell R.D., Breivik E. Questions about formative measurement. Journal of Business Research 2008, 61(12):1219-1228.