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Formative variables are unreal variables: why the formative MIMIC model is invalid

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  • John W. Cadogan

    (Loughborough University, School of Business and Economics, and Lappeenranta University of Technology School of Business)

  • Nick Lee

    (Aston University, Aston Business School)

  • Laura Chamberlain

    (Aston University, Aston Business School)

Abstract

In this rejoinder, we provide a response to the three commentaries written by Diamantopoulos, Howell, and Rigdon (all this issue) on our paper The MIMIC Model and Formative Variables: Problems and Solutions (also this issue). We contrast the approach taken in the latter paper (where we focus on clarifying the assumptions required to reject the formative MIMIC model) by spending time discussing what assumptions would be necessary to accept the use of the formative MIMIC model as a viable approach. Importantly, we clarify the implications of entity realism and show how it is entirely logical that some theoretical constructs can be considered to have real existence independent of their indicators, and some cannot. We show how the formative model only logically holds when considering these ‘unreal’ entities. In doing so, we provide important counter-arguments for much of the criticisms made in Diamantopoulos’ commentary, and the distinction also helps clarify a number of issues in the commentaries of Howell and Rigdon (both of which in general agree with our original paper). We draw together these various threads to provide a set of conceptual tools researchers can use when thinking about the entities in their theoretical models.

Suggested Citation

  • John W. Cadogan & Nick Lee & Laura Chamberlain, 2013. "Formative variables are unreal variables: why the formative MIMIC model is invalid," AMS Review, Springer;Academy of Marketing Science, vol. 3(1), pages 38-49, March.
  • Handle: RePEc:spr:amsrev:v:3:y:2013:i:1:d:10.1007_s13162-013-0038-9
    DOI: 10.1007/s13162-013-0038-9
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    References listed on IDEAS

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    1. Wilcox, James B. & Howell, Roy D. & Breivik, Einar, 2008. "Questions about formative measurement," Journal of Business Research, Elsevier, vol. 61(12), pages 1219-1228, December.
    2. H.M. Blalock, 1975. "The Confounding of Measured and Unmeasured Variables," Sociological Methods & Research, , vol. 3(4), pages 355-383, May.
    3. Roy D. Howell, 2013. "Conceptual clarity in measurement—Constructs, composites, and causes: a commentary on Lee, Cadogan and Chamberlain," AMS Review, Springer;Academy of Marketing Science, vol. 3(1), pages 18-23, March.
    4. Cadogan, John W. & Lee, Nick, 2013. "Improper use of endogenous formative variables," Journal of Business Research, Elsevier, vol. 66(2), pages 233-241.
    5. Edward E. Rigdon, 2013. "Lee, Cadogan, and Chamberlain: an excellent point . . . But what about that iceberg?," AMS Review, Springer;Academy of Marketing Science, vol. 3(1), pages 24-29, March.
    6. Diamantopoulos, Adamantios, 2008. "Formative indicators: Introduction to the special issue," Journal of Business Research, Elsevier, vol. 61(12), pages 1201-1202, December.
    7. Adamantios Diamantopoulos, 2013. "MIMIC models and formative measurement: some thoughts on Lee, Cadogan & Chamberlain," AMS Review, Springer;Academy of Marketing Science, vol. 3(1), pages 30-37, March.
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    Cited by:

    1. Marion Garaus & Udo Wagner, 2019. "Lost in the Store: Assessing the Confusion Potential of Store Environments," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 71(4), pages 413-441, October.
    2. Nick Lee & John W. Cadogan & Laura Chamberlain, 2014. "Material and efficient cause interpretations of the formative model: resolving misunderstandings and clarifying conceptual language," AMS Review, Springer;Academy of Marketing Science, vol. 4(1), pages 32-43, June.
    3. Adamantios Diamantopoulos & Dirk Temme, 2013. "MIMIC models, formative indicators and the joys of research," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 160-170, September.

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