Advancing formative measurement models
Formative measurement models were first introduced in the literature more than forty years ago and the discussion about their methodological contribution has been increasing since the 1990s. However, the use of formative indicators for construct measurement in empirical studies is still scarce. This paper seeks to encourage the thoughtful application of formative models by (a) highlighting the potential consequences of measurement model misspecification, and (b) providing a state-of-the art review of key issues in the formative measurement literature. For the former purpose, this paper summarizes findings of empirical studies investigating the effects of measurement misspecification. For the latter purpose, the article merges contributions in the psychology, management, and marketing literatures to examine a variety of issues concerning the conceptualization, estimation, and validation of formative measurement models. Finally, the article offers some suggestions for future research on formative measurement.
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- 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.
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- Bruhn, Manfred & Georgi, Dominik & Hadwich, Karsten, 2008. "Customer equity management as formative second-order construct," Journal of Business Research, Elsevier, vol. 61(12), pages 1292-1301, December.
- Kenneth Bollen, 1984. "Multiple indicators: Internal consistency or no necessary relationship?," Quality & Quantity: International Journal of Methodology, Springer, vol. 18(4), pages 377-385, August.
- Peter Witt & Verena Rode, 2005. "Corporate Brand Building In Start-Ups," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 273-294.
- Franke, George R. & Preacher, Kristopher J. & Rigdon, Edward E., 2008. "Proportional structural effects of formative indicators," Journal of Business Research, Elsevier, vol. 61(12), pages 1229-1237, December.
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