Advancing formative measurement models

Adamantios Diamantopoulos, Petra Riefler and Katharina Zeugner-Roth

Journal of Business Research, 2008, vol. 61, issue 12, 1203-1218

Abstract: 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.

Keywords: Formative; index; Measurement; model; Causal; indicators (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (244)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:61:y:2008:i:12:p:1203-1218

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