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Material and efficient cause interpretations of the formative model: resolving misunderstandings and clarifying conceptual language

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Listed:
  • Nick Lee

    (Aston University, Aston Business School)

  • John W. Cadogan

    (Loughborough University and Lappeenranta University of Technology, School of Business and Economics)

  • Laura Chamberlain

    (Aston University, Aston Business School)

Abstract

This paper presents a causal explanation of formative variables that unpacks and clarifies the generally accepted idea that formative indicators are ‘causes’ of the focal formative variable. In doing this, we explore the recent paper by Diamantopoulos and Temme (AMS Review, 3(3), 160-171, 2013) and show that the latter misunderstand the stance of Lee, Cadogan, and Chamberlain (AMS Review, 3(1), 3-17, 2013; see also Cadogan, Lee, and Chamberlain, AMS Review, 3(1), 38-49, 2013). By drawing on the multiple ways that one can interpret the idea of causality within the MIMIC model, we then demonstrate how the continued defense of the MIMIC model as a tool to validate formative indicators and to identify formative variables in structural models is misguided. We also present unambiguous recommendations on how formative variables can be modelled in lieu of the formative MIMIC model.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:amsrev:v:4:y:2014:i:1:d:10.1007_s13162-013-0058-5
    DOI: 10.1007/s13162-013-0058-5
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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. 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.
    4. 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.
    5. Cadogan, John W. & Lee, Nick, 2013. "Improper use of endogenous formative variables," Journal of Business Research, Elsevier, vol. 66(2), pages 233-241.
    6. Edward E. Rigdon, 2013. "Lee, Cadogan, and Chamberlain: an excellent point . . . But what about that iceberg?," AMS Review, Springer;Academy of Marketing Science, vol. 3(1), pages 24-29, March.
    7. Andrew M. Jones (ed.), 2006. "The Elgar Companion to Health Economics," Books, Edward Elgar Publishing, number 3572.
    8. Adamantios Diamantopoulos, 2013. "MIMIC models and formative measurement: some thoughts on Lee, Cadogan & Chamberlain," AMS Review, Springer;Academy of Marketing Science, vol. 3(1), pages 30-37, March.
    9. Ronald S. Burt, 1976. "Interpretational Confounding of Unobserved Variables in Structural Equation Models," Sociological Methods & Research, , vol. 5(1), pages 3-52, August.
    10. 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.
    11. Peter M. Fayers & David J. Hand, 2002. "Causal variables, indicator variables and measurement scales: an example from quality of life," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(2), pages 233-253, June.
    12. Diamantopoulos, Adamantios, 2008. "Formative indicators: Introduction to the special issue," Journal of Business Research, Elsevier, vol. 61(12), pages 1201-1202, December.
    13. 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.
    14. G Torrance & Y Zhang & D Feeny & W Furlong & R Barr, 1992. "Multi-attribute Utility Functions for a Comprehensive Health Status Classification System: Health Utilities Index Mark 2," Centre for Health Economics and Policy Analysis Working Paper Series 1992-18, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
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