Formative Measurement Models: A Response to Bainter & Bollen (2014) and Howell (2014)

Purpose: The objectives of the study were to investigate the causes of the delays to analyze the factors causing the construction delay in Oman and to investigate the effects of such delays. Design/methodology/approach: To carry out this study 210 samples were collected through a well-defined questionnaire from the construction stakeholders viz. the consultants, contractors, and the clients who were selected on a random sampling basis. Smart PLS for Structural Equation Modeling (SEM) technique was used to analyze the data to obtain the formative measurement models, the structured model, and the goodness of fit. Findings: The results of the study reveal that the client-related factors, equipment-related factors, and material related factors have a significant impact on the completion delay in construction projects. The findings of the study also revealed that the Client related factors were – Delay in providing services, Delayed decision-making process, Allocation of insufficient time. Equipment related factors were – Existing low productive equipment, Unskillful Equipment operator, Breakdown of equipment and Outdated equipment; Material related factors were – Delay in supply of raw materials, Non-availability of materials, Change of materials during construction, Non-availability of accessories and Damaged materials. Research limitations/Implications: The present study covers the stakeholders of the construction projects from selected regions only. The future studies can be extended to other projects and other regions as well. Social implications: The study suggested that the clients’ cooperation especially in providing the contractors with the necessary equipment, facilities, and sufficient time will avoid such delays of the construction projects in Oman. Originality/Value: Only very few have examined the completion delay of the construction projects in Oman using SEM-PLS and it is a first-hand study of its kind and the results will be useful to the stakeholders.

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Rethinking balanced scorecard (BSC) measures: formative versus reflective measurement models

International Journal of Productivity and Performance Management ◽

10.1108/ijppm-08-2015-0109 ◽

2017 ◽

Vol 66 (1) ◽

pp. 92-110 ◽

Cited By ~ 8

Author(s):

Sungbum Park ◽

Heeseok Lee ◽

Seong Wook Chae

Keyword(s):

Balanced Scorecard ◽

Latent Variables ◽

Structural Equation ◽

Model Comparison ◽

Empirical Studies ◽

Equation Modeling ◽

Content Type ◽

Formative Measurement ◽

Measurement Models ◽

Formative Indicators

Purpose Most empirical balanced scorecard (BSC) studies have shown a tendency to wrongly employ reflective indicators instead of the more theoretically suitable formative indicators. However, formative indicators are difficult to apply due to the lack of statistical software support and a standardized model testing method. The paper aims to discuss these issues. Design/methodology/approach This study empirically compares the reflective and formative measurement method with standardized model comparison criteria. After collecting 217 valid questionnaires from companies in South Korea, the authors applied a structural equation modeling technique to analyze the data. Findings The result shows that the formative measure provides greater validity for the corporate performance measurement using BSC. Further, this study shows the indicators’ relative influence on each BSC perspectives using the formative measure. Practical implications This study proved the usefulness of the formative measure analysis method and suggested its practical use, focusing on the indicators most useful in developing corporate strategies. In addition, the authors showed that formative indicators could be used in the corporate environment by overcoming the limitations of conventional studies that were confined to causal relationships with latent variables. Originality/value This study may be the pioneering work that compares formative and reflective indicators simultaneously, addressing the usefulness of formative measurement and its application validity in the existing empirical studies using reflective measurements.

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Consumer Nostalgia Literature Review and an Alternative Measurement Perspective

Organizations and Markets in Emerging Economies ◽

10.15388/omee.2013.4.2.14252 ◽

2013 ◽

Vol 4 (2) ◽

pp. 112-149 ◽

Cited By ~ 11

Author(s):

Justina Gineikienė

Keyword(s):

Literature Review ◽

Empirical Evidence ◽

Decision Rules ◽

Future Research ◽

Nomological Network ◽

Formative Measurement ◽

Measurement Models ◽

Alternative Perspective ◽

Alternative Measurement ◽

Measurement Approach

During the last two decades consumer nostalgia literature has experienced the growing amount of research, nonetheless, the nomological network in the area is still poorly established and fundamental questions of generalizability and measurement of nostalgia effects remain unanswered. This paper represents an attempt to comprehensively assess extant research in consumer nostalgia field, distinguish developments in the literature by summarizing the main findings of previous research and establishing theoretical trends. The analysis reveals that a number of demographic, social and psychological nostalgia antecedents, moderators and outcomes remain at the propositions level or lack the accumulated empirical quantitative support and validation from other studies. Therefore, specific recommendations regarding the development of nostalgia nomological network are provided to aid the continued theoretical and methodological improvements in the area. Since 1991 research in nostalgia has assumed that the correct measurement approach is a reflective one. This paper offers an alternative perspective for viewing and operationalizing nostalgia construct as a formative construct. Guidelines are summarized that aim to assist researchers with decision rules on whether to employ formative or reflective nostalgia measurement for future research. One of the main contributions of this study is to show the need for researchers to explicitly justify their choice of reflective or formative measurement models by supporting it with theoretical arguments and empirical evidence.

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Impact of Quality Management on Business Performance of Manufacturing Firms: The Moderated Effect of Industry 4.0

Quality Innovation Prosperity ◽

10.12776/qip.v25i3.1623 ◽

2021 ◽

Vol 25 (3) ◽

pp. 120-135

Author(s):

Nu Nguyen ◽

Chuong Nguyen ◽

Hieu Nguyen ◽

Van Nguyen

Keyword(s):

Quality Management ◽

Industry 4.0 ◽

Business Performance ◽

Quantitative Methods ◽

Structural Model ◽

Measurement Model ◽

Manufacturing Firms ◽

Quality Model ◽

Formative Measurement ◽

Measurement Models

Purpose: The research aims to investigate the individual quality management (QM) factors impact on business performance in manufacturing firms. We then assess their influence and look at how industry 4.0 affects business performance directly. Furthermore, the study will demonstrate the moderate effect of industry 4.0 on the interaction between QM and business performance. Methodology/Approach: The authors used two methodologies. The first is qualitative methods, by interviewing experts to develop a realistically appropriate model. The second is quantitative methods, by carrying out the survey and getting 84 observations. This research used the multivariate data analysis technique PLS-SEM to evaluate three measurement models: formative measurement model, reflective measurement model, and structural model. Findings: The QM was operationalised as a multi–dimensional construct. According to the findings, these individual QM factors significantly affect the organisation’s performance, including customer satisfaction, employee satisfaction and quality performance. Besides, QM and Industry 4.0 have directly impact on performance. The study also shows that industry 4.0 has a positive moderating role in the relationship between QM and business performance. Research Limitation/Implication: The survey was only done in emerging countries and the sample size is limited. There are other QM and business performance measurement parameters that have not yet to be discussed. Originality/Value of paper: The study contributes to the QM literature by building a business quality model, in which the role of Industry 4.0 was explored.

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The Role of Formative Measurement Models in Strategic Management Research: Review, Critique, and Implications for Future Research

Research Methodology in Strategy and Management ◽

10.1016/s1479-8387(06)03008-6 ◽

2006 ◽

pp. 197-252 ◽

Cited By ~ 88

Author(s):

Nathan P. Podsakoff ◽

Wei Shen ◽

Philip M. Podsakoff

Keyword(s):

Strategic Management ◽

Research Review ◽

Future Research ◽

Management Research ◽

Formative Measurement ◽

Measurement Models

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Re-examining the relationships among perceived quality, value, satisfaction, and destination loyalty

Journal Of Vacation Marketing ◽

10.1177/1356766717690572 ◽

2017 ◽

Vol 24 (2) ◽

pp. 118-135 ◽

Cited By ~ 23

Author(s):

Rob Hallak ◽

Guy Assaker ◽

Rania El-Haddad

Keyword(s):

Structural Equation ◽

The United States ◽

Perceived Quality ◽

Second Order ◽

Equation Modeling ◽

Order Model ◽

Destination Loyalty ◽

Formative Measurement ◽

First Order ◽

Measurement Models

Drawing on the literature on service quality, marketing, and tourism, the present study tests a comprehensive model of the effects of perceived quality (PQ) on loyalty in the context of a tourism destination. Using a sample of 249 residents from the United Kingdom and the United States who visited Australia between 2008 and 2012, this research applies partial least squares–structural equation modeling to examine these relationships. PQ is operationalized as a multidimensional construct determined by six destination dimensions: natural and well-known attractions, variety of tourist services, quality of general atmosphere, entertainment and recreation, general environment, and accessibility. Our results support the conceptualization of PQ as a “reflective first-order, formative second-order” model (also referred to as a molar, or type II, higher order model, see Diamantopoulos A, Riefler P, and Roth KP (2008) Advancing formative measurement models. Journal of Business Research 61(12): 1203–1218). Results from this study found that the six reflective first-order dimensions of PQ form the higher (second)-order PQ construct. Moreover, PQ has a stronger effect on loyalty (both direct and indirect through satisfaction) compared to perceived value, which only exercises an indirect effect on loyalty. The study presents new insights on the operationalization of PQ and the network of causal relationships among PQ, value, satisfaction, and loyalty in tourism destinations.

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Evaluation of Formative Measurement Models

10.1007/978-3-030-80519-7_5 ◽

2021 ◽

pp. 91-113

Author(s):

Joseph F. Hair ◽

G. Tomas M. Hult ◽

Christian M. Ringle ◽

Marko Sarstedt ◽

Nicholas P. Danks ◽

...

Keyword(s):

Corporate Reputation ◽

Convergent Validity ◽

Statistical Significance ◽

Path Model ◽

Extended Version ◽

Formative Measurement ◽

Measurement Models ◽

Reputation Model ◽

Key Steps

AbstractPLS-SEM is the preferred approach when formatively specified constructs are included in the PLS path model. In this chapter, we discuss the key steps for evaluating formative measurement models. These include the assessment of (1) convergent validity, (2) indicator collinearity, and (3) statistical significance and relevance of the indicator weights. We introduce key criteria and their thresholds and illustrate their use with an extended version of the corporate reputation model estimated with SEMinR.

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ON THE FACEBOOK DEPENDENCE AND ITS NEGATIVE EFFECTS ON UNIVERSITY STUDENTS’ WORK: A MULTI-GROUP ANALYSIS

Problems of Education in the 21st Century ◽

10.33225/pec/16.73.62 ◽

2016 ◽

Vol 73 (1) ◽

pp. 62-74

Author(s):

Gabriel Gorghiu ◽

Costin Pribeanu ◽

Vincentas Lamanauskas

Keyword(s):

Latent Variables ◽

Group Analysis ◽

Network Size ◽

Negative Consequences ◽

Negative Effects ◽

Formative Measurement ◽

Measurement Models ◽

E Learning ◽

Analysis Of Results ◽

The University

The explosion of social networking websites in general, and Facebook in particular, impacts the educational context both positively and negatively. Too much time spent on Facebook leads to negative effects on the university work of students. The objectives of this research are to measure and analyse the relationship between the Facebook dependence and the negative consequences of the excessive use of Facebook on the university work of students. In this respect, a conceptual model has been tested that has two inter-correlated latent variables: the withdrawal syndrome, measuring the Facebook dependence and the negative consequences onto the university work. The analysis of results has been done onto three groups featuring the user’s profile according to the network size (number of Facebook friends) of students. The findings show that the larger the Facebook network, the higher the frequency and duration of Facebook use. The analysis of measurement invariance shows that the model exhibits factorial, metric, and scalar invariance on the three user profiles. The comparison between groups shows that students having larger networks and spending more time on Facebook have a higher level of dependence and their university work is more affected. Key words: formative measurement models, e-learning process, educational value, motivation to learn.

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