 Proportional structural effects of formative indicatorsGeorge R. Franke, Kristopher J. Preacher and Edward E. Rigdon Journal of Business Research, 2008, vol. 61, issue 12, 1229-1237 Abstract: Formative constructs must influence two or more distinct outcome variables for meaningful tests of the formative conceptualization. Because the construct mediates the effects of its indicators, the indicators must have effects on the outcomes that are proportional to their effects on the formative construct itself. This constraint has important implications for developing and testing formative models. This study demonstrates the existence of the constraint, shows that researchers must consider proportionality as a criterion for evaluating the formative conceptualization, provides examples of indicators having different effects and interpretations depending on the outcome variables used, discusses the selection of outcomes to provide rigorous rather than trivial tests of the formative conceptualization, and contends that the formative nature of constructs cannot be justified in isolation from the consideration of outcome variables. In addition, the study demonstrates the importance of considering how the scaling of the formative construct influences the significance of the effects in the model. Keywords: Formative; constructs; Causal; indicators; Measurement; Likelihood; ratio; tests (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:61:y:2008:i:12:p:1229-1237 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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