Response shift in health-related quality of life measures in the presence of formative indicators

Background Response shift (RS) has been defined as a change in the meaning of an individual’s self-evaluation that needs to be accounted for when assessing longitudinal changes in health-related quality of life (HRQoL). RS detection through structural equation modeling is accomplished by adopting Oort’s procedure based on a measurement model in which the observed variables are defined as reflective indicators of the HRQoL latent variable; that is, the latent variable causes the variation in the reflective indicators. This study aims to propose a procedure that assesses RS when formative indicators are used in measuring HRQoL; in this last case, the latent variable is considered to be a function of some formative indicators. A secondary aim is to compare the new procedure with Oort’s procedure to highlight similarities and differences. Methods The data were retrieved from a consecutive series of 258 patients newly diagnosed with colorectal cancer and undergoing chemotherapy and/or surgery. The European Organisation for Research and Treatment of Cancer Quality of Life Questionnaire (EORTC QOL-C30) was administered twice, once before and once six months after treatment. Structural equation modeling was used to evaluate RS and true change with the newly proposed method (in which fatigue and pain were defined as formative indicators) and with Oort’s procedure (in which fatigue and pain were defined as reflective indicators). Results According to the new procedure, there was no measurement bias, and on average, patients’ quality of life improved by 3.53 points (on a scale ranging from 0 to 100) at the 6-month follow-up. With Oort’s procedure, the loading of the pain indicator was not invariant across the two time points, suggesting the presence of reprioritization, whereas the estimation of true change was very similar to the previous one: 3.87. Conclusions RS and true change in HRQoL can be evaluated in the presence of formative indicators. Defining a measurement model by formative or reflective indicators can lead to different results.

Conception and evaluation of a structural equation model to measure the reputation of German horticulture

The reputation of a sector is an important strategic resource. The aim of this article is to develop a measurement model for the horticulture sector. Reputation is a latent variable and is represented by formative and reflective indicators. A theoretically elaborated model will be evaluated and completed with the help of experts (n=102), and the segments that influence reputation will be identified. The quality assessment of the formative indicators, using multiple regression, and the reflective indicators, using an explorative factor analysis, led to a model with a total of 15 indicators. With the help of open questions, it was possible, to specify the indicators already considered or to include them in the model as new indicators. A reputation map shows the interaction between the reputation of horticulture and that of the individual segments. This shows a much greater influence of the service segments on the sector reputation compared to the production segments.

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

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.

Developing a sustainability index for companies’ efforts on responsible use of water

Purpose – The purpose of this paper is to investigate an initial set of formative indicators to measure the level of efforts on sustainable use of water by companies from different sectors to eventually generate an index with a ranking of such companies. Design/methodology/approach – The authors started with unstructured data from an open-ended survey conducted by the Carbon Disclosure Project (CDP) on over 300 global companies. Using data from 158 of the companies in that survey from 27 different two-digit UK SIC codes, the authors devised the indicators, translated these into questions requiring response on a seven-point Likert scale, and then coded the companies’ response in the CDP survey for the questionnaire. Findings – First, all the questions were valid in that responses could be provided. Second, in open-ended surveys like CDP's survey, companies provided information only on selected dimensions and not on others. Third, across sectors, companies are putting more effort on usage efficiency relative to where the water comes from or where it goes after use. Research limitations/implications – The questions still require field-testing for validation and user acceptance. Practical implications – The proposed questions could become part of a survey for companies to self-assess or to disclose information on the sustainable use of water. An index created using disclosed data would motivate companies to make more effort towards sustainable use of water. Originality/value – The authors believe this to be the first effort towards formulating a sustainability index of companies’ use of water.