IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v67y2014i1p2821-2826.html
   My bibliography  Save this article

Formative vs. reflective measures: Facets of variation

Author

Listed:
  • Finn, Adam
  • Wang, Luming

Abstract

Research that treats observed measures of a business construct as a function of a latent true score plus random error is making two strong assumptions. The first, the assumed direction of causality, has generated the burgeoning formative measurement literature to which Cadogan and Lee (2013) contribute. The second is overlooked. Classical test theory assumes there is only one legitimate source of variance. Academics validating measures of business constructs invariably assume that this source is their respondents, who can be managers, employees, or customers, depending on the context (i.e. business discipline). The invoked causality accounts for covariance at the respondent level, ignoring whether it also applies to other sources of variance—such facets as brands, companies, departments, locations, service providers or work groups. Researchers need to be clear about a business construct's conceptual domain, about the sources of variance that are focal to the theoretical relationships being investigated, and whether the construct's relationship with its indicators is formative or reflective for each facet.

Suggested Citation

  • Finn, Adam & Wang, Luming, 2014. "Formative vs. reflective measures: Facets of variation," Journal of Business Research, Elsevier, vol. 67(1), pages 2821-2826.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:1:p:2821-2826
    DOI: 10.1016/j.jbusres.2012.08.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296312002147
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2012.08.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Diamantopoulos, Adamantios & Riefler, Petra & Roth, Katharina P., 2008. "Advancing formative measurement models," Journal of Business Research, Elsevier, vol. 61(12), pages 1203-1218, December.
    2. 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.
    3. George Marcoulides, 1989. "The application of generalizability analysis to observational studies," Quality & Quantity: International Journal of Methodology, Springer, vol. 23(2), pages 115-127, June.
    4. John R. Rossiter, 2011. "Measurement for the Social Sciences," Springer Books, Springer, number 978-1-4419-7158-6, October.
    5. Cadogan, John W. & Lee, Nick, 2013. "Improper use of endogenous formative variables," Journal of Business Research, Elsevier, vol. 66(2), pages 233-241.
    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. Fleury, Afonso & Fleury, Maria Tereza Leme & Oliveira, Luis & Leao, Pablo, 2024. "Going digital EMNEs: The role of digital maturity capability," International Business Review, Elsevier, vol. 33(4).
    2. Bèzes, Christophe, 2014. "Definition and psychometric validation of a measurement index common to website and store images," Journal of Business Research, Elsevier, vol. 67(12), pages 2559-2578.
    3. Thompson, Edmund R. & Dericks, Gerard H. & Fai, Felicia, 2019. "Development and validation of a firm-level vertical and horizontal internationalization metric," International Business Review, Elsevier, vol. 28(3), pages 533-543.
    4. Eggers, Fabian & Niemand, Thomas & Kraus, Sascha & Breier, Matthias, 2020. "Developing a scale for entrepreneurial marketing: Revealing its inner frame and prediction of performance," Journal of Business Research, Elsevier, vol. 113(C), pages 72-82.
    5. Brush, Gregory J. & Soutar, Geoffrey N., 2022. "A Rasch analysis of service performance in a tourism context," Journal of Business Research, Elsevier, vol. 139(C), pages 338-353.
    6. Cahen, Fernanda & Borini, Felipe Mendes, 2020. "International Digital Competence," Journal of International Management, Elsevier, vol. 26(1).
    7. Luming Wang & Adam Finn, 2016. "Using vanishing tetrad test to examine multifaceted causal directionality," Journal of Marketing Analytics, Palgrave Macmillan, vol. 4(1), pages 51-59, March.
    8. Wei Gao & Lin Wang & Jingdong Yan & Yanxiong Wu & Sadik Yusuf Musse, 2021. "Fostering Workplace Innovation through CSR and Authentic Leadership: Evidence from SME Sector," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    9. Sajtos, Laszlo & Magyar, Bertalan, 2016. "Auxiliary theories as translation mechanisms for measurement model specification," Journal of Business Research, Elsevier, vol. 69(8), pages 3186-3191.
    10. Christian Homburg & Moritz Tischer, 2023. "Customer journey management capability in business-to-business markets: Its bright and dark sides and overall impact on firm performance," Journal of the Academy of Marketing Science, Springer, vol. 51(5), pages 1046-1074, September.
    11. Anninou, Ioanna & Foxall, Gordon R., 2019. "The reinforcing and aversive consequences of customer experience. The role of consumer confusion," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 139-151.
    12. Klaus G. Grunert & Yanfeng Zhou & Marija Banovic & Natascha Loebnitz, 2021. "Supermarket competence in emergent markets: Conceptualization, measurement, effects, and policy implications," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1633-1659, December.
    13. Wymer, Walter & Casidy, Riza, 2019. "Exploring brand strength's nomological net and its dimensional dynamics," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 11-22.
    14. Varshneya, Geetika & Das, Gopal, 2017. "Experiential value: Multi-item scale development and validation," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 48-57.

    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. 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.
    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. 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.
    4. Jun-Hwa Cheah & Hiram Ting & T. Ramayah & Mumtaz Ali Memon & Tat-Huei Cham & Enrico Ciavolino, 2019. "A comparison of five reflective–formative estimation approaches: reconsideration and recommendations for tourism research," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1421-1458, May.
    5. Matteo Mazziotta & Adriano Pareto, 2019. "Use and Misuse of PCA for Measuring Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(2), pages 451-476, April.
    6. 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.
    7. Panagopoulos, Nikolaos G. & Avlonitis, George J., 2010. "Performance implications of sales strategy: The moderating effects of leadership and environment," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 46-57.
    8. Siti Salwa Mohd Ishak & Sidney Newton, 2018. "Testing a Model of User Resistance Towards Technology Adoption in Construction Organizations," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(06), pages 1-27, December.
    9. Zhuomin Shi & Zaoying Kuang & Ning Yang, 2017. "Why it is hard to explain Chinese face?—FACE measurement models and its influence on ecological product preference," Frontiers of Business Research in China, Springer, vol. 11(1), pages 1-22, December.
    10. John Hulland & Hans Baumgartner & Keith Marion Smith, 2018. "Marketing survey research best practices: evidence and recommendations from a review of JAMS articles," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 92-108, January.
    11. John S. Hill & Myung-Su Chae & Jinseo Park, 2012. "The Effects of Geography and Infrastructure on Economic Development and International Business Involvement," Journal of Infrastructure Development, India Development Foundation, vol. 4(2), pages 91-113, December.
    12. Lee Yen Chaw & Chun Meng Tang, 2019. "Online accommodation booking: what information matters the most to users?," Information Technology & Tourism, Springer, vol. 21(3), pages 369-390, September.
    13. Bartikowski, Boris & Richard, Marie-Odile & Gierl, Heribert, 2023. "Fit or misfit of culture in marketing communication? Development of the culture-ladenness fit index," Journal of Business Research, Elsevier, vol. 167(C).
    14. Grahame R. Dowling & Tayo Otubanjo, 2011. "Corporate and organizational identity: two sides of the same coin," AMS Review, Springer;Academy of Marketing Science, vol. 1(3), pages 171-182, December.
    15. Michael Hennessy & Amy Bleakley & Martin Fishbein, 2012. "Measurement Models for Reasoned Action Theory," The ANNALS of the American Academy of Political and Social Science, , vol. 640(1), pages 42-57, March.
    16. Moulard, Julie Guidry & Kroff, Michael W. & Folse, Judith Anne Garretson, 2012. "Unraveling consumer suspense: The role of hope, fear, and probability fluctuations," Journal of Business Research, Elsevier, vol. 65(3), pages 340-346.
    17. Djula Borozan & Josip Arneric & Ilija Coric, 2017. "A comparative study of net entrepreneurial productivity in developed and post-transition economies," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 855-880, September.
    18. Rauter, Romana & Globocnik, Dietfried & Baumgartner, Rupert J., 2023. "The role of organizational controls to advance sustainability innovation performance," Technovation, Elsevier, vol. 128(C).
    19. Malhotra, Neeru & Sahadev, Sunil & Purani, Keyoor, 2017. "Psychological contract violation and customer intention to reuse online retailers: Exploring mediating and moderating mechanisms," Journal of Business Research, Elsevier, vol. 75(C), pages 17-28.
    20. De Giovanni, Pietro & Esposito Vinzi, Vincenzo, 2012. "Covariance versus component-based estimations of performance in green supply chain management," International Journal of Production Economics, Elsevier, vol. 135(2), pages 907-916.

    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:67:y:2014:i:1:p:2821-2826. 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.