IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v61y2008i12p1229-1237.html

Proportional structural effects of formative indicators

Author

Listed:
  • Franke, George R.
  • Preacher, Kristopher J.
  • Rigdon, Edward E.

Abstract

Formative constructs must influence two or more distinct outcome variables for meaningful tests of the formative conceptualization. Because the construct mediates the effects of its indicators, the indicators must have effects on the outcomes that are proportional to their effects on the formative construct itself. This constraint has important implications for developing and testing formative models. This study demonstrates the existence of the constraint, shows that researchers must consider proportionality as a criterion for evaluating the formative conceptualization, provides examples of indicators having different effects and interpretations depending on the outcome variables used, discusses the selection of outcomes to provide rigorous rather than trivial tests of the formative conceptualization, and contends that the formative nature of constructs cannot be justified in isolation from the consideration of outcome variables. In addition, the study demonstrates the importance of considering how the scaling of the formative construct influences the significance of the effects in the model.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:61:y:2008:i:12:p:1229-1237
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(08)00013-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Genshu Lu & Yaping Song & Bingchao Pan, 2021. "How University Entrepreneurship Support Affects College Students’ Entrepreneurial Intentions: An Empirical Analysis from China," Sustainability, MDPI, vol. 13(6), pages 1-25, March.
    2. Nick Lee & John W. Cadogan & Laura Chamberlain, 2013. "The MIMIC model and formative variables: problems and solutions," AMS Review, Springer;Academy of Marketing Science, vol. 3(1), pages 3-17, March.
    3. Wolter, Jeremy S. & Landers, Vincent Myles & Gabler, Colin, 2025. "The hate we create: How inter-brand hostility and consumer-brand identification turn fans into fighters," Journal of Business Research, Elsevier, vol. 199(C).
    4. Navarro, Antonio & Losada, Fernando & Ruzo, Emilio & Díez, José A., 2010. "Implications of perceived competitive advantages, adaptation of marketing tactics and export commitment on export performance," Journal of World Business, Elsevier, vol. 45(1), pages 49-58, January.
    5. Diamantopoulos, Adamantios, 2010. "Reflective and formative metrics of relationship value: Response to Baxter's commentary essay," Journal of Business Research, Elsevier, vol. 63(1), pages 91-93, January.
    6. Nitzl, Christian, 2016. "The use of partial least squares structural equation modelling (PLS-SEM) in management accounting research: Directions for future theory development," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 19-35.
    7. Jeffrey G. Covin & William J. Wales, 2012. "The Measurement of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 36(4), pages 677-702, July.
    8. 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.
    9. Chebat, Jean-Charles & Sirgy, M. Joseph & Grzeskowiak, Stephan, 2010. "How can shopping mall management best capture mall image?," Journal of Business Research, Elsevier, vol. 63(7), pages 735-740, July.
    10. Cadogan, John W. & Lee, Nick, 2013. "Improper use of endogenous formative variables," Journal of Business Research, Elsevier, vol. 66(2), pages 233-241.
    11. Dirk Temme & Adamantios Diamantopoulos & Vanessa Pfegfeidel, 2014. "Specifying Formatively-measured Constructs In Endogenous Positions In Structural Equation Models: Caveats and Guidelines For Researchers," Schumpeter Discussion Papers SDP14005, Universitätsbibliothek Wuppertal, University Library.
    12. Blut, Markus, 2016. "E-Service Quality: Development of a Hierarchical Model," Journal of Retailing, Elsevier, vol. 92(4), pages 500-517.
    13. Efrat, Kalanit & Souchon, Anne L. & Dickenson, Peter & Nemkova, Ekaterina, 2021. "Chutzpadik advertising and its effectiveness: Four studies of agencies and audiences," Journal of Business Research, Elsevier, vol. 137(C), pages 601-613.
    14. Rodgers, Waymond & Guiral, Andrés, 2011. "Potential model misspecification bias: Formative indicators enhancing theory for accounting researchers," The International Journal of Accounting, Elsevier, vol. 46(1), pages 25-50, March.
    15. Aruna Jha & Vijita Singh Aggrawal, 2019. "Institutional pressures for corporate social responsibility implementation: a study of Indian executives," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(4), pages 555-577, June.
    16. Madeleine Feder & Barbara E. Weißenberger, 2019. "Understanding the behavioral gap: Why would managers (not) engage in CSR-related activities?," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 95-126, April.
    17. Chang, Woojung & Franke, George R. & Lee, Nick, 2016. "Comparing reflective and formative measures: New insights from relevant simulations," Journal of Business Research, Elsevier, vol. 69(8), pages 3177-3185.
    18. Diamantopoulos, Adamantios & Riefler, Petra & Roth, Katharina P., 2008. "Advancing formative measurement models," Journal of Business Research, Elsevier, vol. 61(12), pages 1203-1218, December.
    19. Baxter, Roger, 2009. "Reflective and formative metrics of relationship value: A commentary essay," Journal of Business Research, Elsevier, vol. 62(12), pages 1370-1377, December.
    20. Temme, Dirk & Diamantopoulos, Adamantios & Pfegfeidel, Vanessa, 2014. "Specifying formatively-measured constructs in endogenous positions in structural equation models: Caveats and guidelines for researchers," International Journal of Research in Marketing, Elsevier, vol. 31(3), pages 309-316.
    21. Azuela Flores José Ignacio & Jiménez Torres Nadia H., 2014. "El estado del arte de la orientación al mercado en las organizaciones culturales," Contaduría y Administración, Accounting and Management, vol. 59(1), pages 259-282, enero-mar.
    22. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhao, Di & Wang, Hongyu & Kou, Xianliu, 2025. "Measuring true bootlegging: Conceptualization, scale development and validation," Journal of Business Research, Elsevier, vol. 196(C).
    2. Mohammad Muzahid Akbar & Walter Wymer, 2017. "Refining the conceptualization of Brand Authenticity," Journal of Brand Management, Palgrave Macmillan, vol. 24(1), pages 14-32, January.
    3. Liu, Qian & Shao, Zhen & Fan, Weiguo, 2018. "The impact of users’ sense of belonging on social media habit formation: Empirical evidence from social networking and microblogging websites in China," International Journal of Information Management, Elsevier, vol. 43(C), pages 209-223.
    4. Philippe Cohard, 2020. "Information Systems Values: A Study of the Intranet in Three French Higher Education Institutions," Post-Print hal-02987225, HAL.
    5. Joan-Lluis Capelleras & Ignacio Contín-Pilart & Martin Larraza-Kintana, 2011. "Publicly Funded Prestart Support for New Firms: Who Demands it and How it Affects Their Employment Growth," Environment and Planning C, , vol. 29(5), pages 821-847, October.
    6. Kusa, Rafał & Suder, Marcin & Duda, Joanna, 2023. "Impact of greening on performance in the hospitality industry: Moderating effect of flexibility and inter-organizational cooperation," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    7. Anne Bartel-Radic & Jean-Luc Giannelloni, 2017. "A renewed perspective on the measurement of cross-cultural competence: An approach through personality traits and cross-cultural knowledge," Post-Print hal-01975656, HAL.
    8. Bruhn, Manfred & Batt, Verena & Flückiger, Benjamin, 2013. "Aufbau von Arbeitgeberattraktivität – Identifikation der Determinanten und empirische Überprüfung," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 67(1), pages 62-82.
    9. Lim, Dominic S.K. & Oh, Chang Hoon & De Clercq, Dirk, 2016. "Engagement in entrepreneurship in emerging economies: Interactive effects of individual-level factors and institutional conditions," International Business Review, Elsevier, vol. 25(4), pages 933-945.
    10. Deng, Qian (Claire) & Messinger, Paul R., 2022. "Dimensions of brand-extension fit," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 764-787.
    11. Schneider, Christian O. & Bremen, Philipp & Schönsleben, Paul & Alard, Robert, 2013. "Transaction cost economics in global sourcing: Assessing regional differences and implications for performance," International Journal of Production Economics, Elsevier, vol. 141(1), pages 243-254.
    12. Sony, Michael & Naik, Subhash, 2020. "Industry 4.0 integration with socio-technical systems theory: A systematic review and proposed theoretical model," Technology in Society, Elsevier, vol. 61(C).
    13. Owais Khan & Tiberio Daddi & Fabio Iraldo, 2020. "The role of dynamic capabilities in circular economy implementation and performance of companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 3018-3033, November.
    14. Nikola Milicevic & Ines Djokic & Nenad Djokic & Aleksandar Grubor, 2022. "Social Marketing in Promoting Sustainable Healthy Lifestyle among Student Population," Sustainability, MDPI, vol. 14(3), pages 1-14, February.
    15. Bediako, Isaac Asare & Zhao, Xicang & Antwi, Henry Asante & Mensah, Claudia Nyarko, 2018. "Urban water supply systems improvement through water technology adoption," Technology in Society, Elsevier, vol. 55(C), pages 70-77.
    16. Ashwin W. Joshi, 2017. "OEM implementation of supplier-developed component innovations: the role of supplier actions," Journal of the Academy of Marketing Science, Springer, vol. 45(4), pages 548-568, July.
    17. DeMarree, Kenneth G. & Briñol, Pablo & Petty, Richard E., 2014. "The effects of power on prosocial outcomes: A self-validation analysis," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 20-30.
    18. Alessia Acampora & Michele Preziosi & Maria Claudia Lucchetti & Roberto Merli, 2022. "The Role of Hotel Environmental Communication and Guests’ Environmental Concern in Determining Guests’ Behavioral Intentions," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    19. Mariya Razzaghian & Attaullah Shah, 2018. "An Assessment of the Predictors and Consequences of Workaholism using Hierarchical Models," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(4), pages 1-26, December.
    20. von den Driesch, Till & Eva Susanne da Costa, Maika & Christina Flatten, Tessa & Brettel, Malte, 2015. "How CEO experience, personality, and network affect firms' dynamic capabilities," European Management Journal, Elsevier, vol. 33(4), pages 245-256.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:61:y:2008:i:12:p:1229-1237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.