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Advancing formative measurement models

Listed author(s):
  • A. Diamantopoulos
  • P. Riefler
  • K.P. Roth

    (LEM - Lille - Economie et Management - Université de Lille, Sciences et Technologies - Fédération Universitaire et Polytechnique de Lille - Université de Lille, Sciences Humaines et Sociales - CNRS - Centre National de la Recherche Scientifique)

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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Paper provided by HAL in its series Post-Print with number hal-00787421.

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Date of creation: 2008
Publication status: Published in Journal of Business Research, Elsevier, 2008, 61 (12), pp.1203-1218
Handle: RePEc:hal:journl:hal-00787421
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00787421
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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  1. Sunil Venaik & David F Midgley & Timothy M Devinney, 2005. "Dual paths to performance: the impact of global pressures on MNC subsidiary conduct and performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(6), pages 655-675, November.
  2. Ruiz, David Martín & Gremler, Dwayne D. & Washburn, Judith H. & Carrión, Gabriel Cepeda, 2008. "Service value revisited: Specifying a higher-order, formative measure," Journal of Business Research, Elsevier, vol. 61(12), pages 1278-1291, December.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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, Oxford University Press, vol. 30(2), pages 199-218, September.
  8. 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.
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