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Conceptual clarity in measurement—Constructs, composites, and causes: a commentary on Lee, Cadogan and Chamberlain

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  • Roy D. Howell

    (Texas Tech University)

Abstract

In an insightful and important article, Lee et al. (2013, this issue) clearly point out the problems with so-called formative measurement. In particular, they suggest that the MIMIC model formulation, as currently conceptualized, does not provide a solution. Their central thesis is that, in a MIMIC model, the supposedly formatively measured latent variable is empirically a reflective latent variable depending entirely on the endogenous variables included. They then look at composite variables as a possible solution. This commentary seeks to reinforce their central thesis, providing additional evidence and support. I also attempt to clarify the distinction between two types of models discussed in the article as MIMIC models. I then examine the use of composite variables, focusing on potential information loss and issues concerning conceptual clarity. I conclude that composite variables should not be routinely employed in theory testing research, and their use must be clearly justified.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:amsrev:v:3:y:2013:i:1:d:10.1007_s13162-013-0036-y
    DOI: 10.1007/s13162-013-0036-y
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Cadogan, John W. & Lee, Nick, 2013. "Improper use of endogenous formative variables," Journal of Business Research, Elsevier, vol. 66(2), pages 233-241.
    4. Peter Adams & Michael D. Hurd & Daniel L. McFadden & Angela Merrill & Tiago Ribeiro, 2004. "Healthy, Wealthy, and Wise? Tests for Direct Causal Paths between Health and Socioeconomic Status," NBER Chapters, in: Perspectives on the Economics of Aging, pages 415-526, National Bureau of Economic Research, Inc.
    5. 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.
    6. Ronald S. Burt, 1976. "Interpretational Confounding of Unobserved Variables in Structural Equation Models," Sociological Methods & Research, , vol. 5(1), pages 3-52, August.
    7. Lee, Nick & Cadogan, John W., 2013. "Problems with formative and higher-order reflective variables," Journal of Business Research, Elsevier, vol. 66(2), pages 242-247.
    8. 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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    1. 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.
    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. John R. Rossiter, 2013. "Scientific progress in measurement theory?," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 171-179, September.
    4. 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.
    5. 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.

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