To read the full version of this content please select one of the options below:

The error term in formative measurement models: interpretation and modeling implications

Adamantios Diamantopoulos (University of Vienna, Vienna, Austria)

Journal of Modelling in Management

ISSN: 1746-5664

Article publication date: 1 January 2006

Abstract

Purpose

To clarify the nature of the error term in formative measurement models, as it had been misinterpreted in prior research.

Design/methodology/approach

The error term in formative measurement models is analytically contrasted with the measurement errors typically found in reflective measurement models.

Findings

It is demonstrated that, unlike in reflective measurement, the error term in formative models is not measurement error but rather a disturbance representing non‐modeled causes. It is also shown that, under certain circumstances, the inclusion of an error term is not necessary/appropriate.

Research limitations/implications

Focus is only on first‐order measurement models; higher‐order specifications are not considered.

Originality/value

The paper helps researchers in their initial specification of formative measurement models as well as their evaluation of the subsequent model estimates, leading to better specifications for formative constructs.

Keywords

Citation

Diamantopoulos, A. (2006), "The error term in formative measurement models: interpretation and modeling implications", Journal of Modelling in Management, Vol. 1 No. 1, pp. 7-17. https://doi.org/10.1108/17465660610667775

Publisher

:

Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited