Search results

1 – 10 of over 6000
To view the access options for this content please click here
Book part
Publication date: 18 September 2006

Nathan P. Podsakoff, Wei Shen and Philip M. Podsakoff

Since the publication of Venkatraman and Grant's (1986) article two decades ago, considerably more attention has been directed at establishing the validity of constructs

Abstract

Since the publication of Venkatraman and Grant's (1986) article two decades ago, considerably more attention has been directed at establishing the validity of constructs in the strategy literature. However, recent developments in measurement theory indicate that strategy researchers need to pay additional attention to whether their constructs should be modeled as having formative or reflective indicators. Therefore, the purpose of this chapter is to highlight the differences between formative and reflective indicator measurement models, and discuss the potential role of formative measurement models in strategy research. First, we systematically review the literature on construct measurement model specification. Second, we assess the extent of measurement model misspecification in the recent strategy literature. Our assessment of 257 constructs in the contemporary strategy literature suggests that many important strategy constructs are more appropriately modeled as having formative indicators than as having reflective indicators. Based on this review, we identify some common errors leading to measurement model misspecification in the strategy domain. Finally, we discuss some implications of our analyses for scholars in the strategic management field.

Details

Research Methodology in Strategy and Management
Type: Book
ISBN: 978-0-76231-339-6

To view the access options for this content please click here
Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

Keywords

To view the access options for this content please click here
Article
Publication date: 12 June 2017

Lori Allen Ford

The purpose of this paper is to provide an understanding of the issues related to formative modeling and the implications for its use, including some practical suggestions…

Abstract

Purpose

The purpose of this paper is to provide an understanding of the issues related to formative modeling and the implications for its use, including some practical suggestions on methods for utilizing causal indicators within models.

Design/methodology/approach

In order to understand and explore the issues relating to formative models, this paper explores both formative and reflective indicators that together address the basic approach to the causal relationship within measurement models in structural equations modeling. Process recommendations for formative model/variable conceptualization and development are presented as well as a discussion of several evaluative issues including identification and proportionality. Some of the main arguments for and against its use are also discussed.

Findings

While the literature on formative models stresses its contribution to behavioral sciences, perhaps its greatest contribution is the flexibility of choice that it provides researchers in the development of models to more accurately estimate the relationship under consideration.

Originality/value

The paper contributes to the on-going debate on the relative advantages and disadvantages of the formative and reflective approaches to modeling and examination. Although the pendulum has swung in recent years away from an almost singular focus on reflective models, both approaches provide useful and complementary tools to theoretical management research modeling.

Details

Journal of Management Development, vol. 36 no. 5
Type: Research Article
ISSN: 0262-1711

Keywords

To view the access options for this content please click here
Article
Publication date: 5 September 2019

Puja Khatri and Pragya Gupta

The purpose of this paper is to conceptualize a suitable measure for the employee wellbeing construct and validate this tool in Indian workplace settings, especially with…

Abstract

Purpose

The purpose of this paper is to conceptualize a suitable measure for the employee wellbeing construct and validate this tool in Indian workplace settings, especially with reference to IT/ITes and BFSI sectors.

Design/methodology/approach

This study is descriptive and cross-sectional in nature. The literature was first reviewed to identify the underlying probable dimensions of employee wellbeing and its corresponding items. These items were then subjected to elaborate discussions with experts from industry as well as academia. The index, thus, developed was administered to collect primary data from employees working in IT/ITeS and BFSI sectors based in Delhi-NCR. PLS SEM 3 was applied as employee wellbeing was construed as a first-order reflective second-order formative construct. Thereafter, it was subjected to suitable assessments of reliability and convergent validity.

Findings

The findings reveal that employee wellbeing can be conceptualized as a construct having four dimensions namely, purpose in life (PIL), work–life balance (WLB), job wellness (JW) and physical wellness (PW). It was also revealed that all the dimensions identified in the study capture different facets of the employee wellbeing and collectively define the construct; omission of any items may lead to change in the nature of the construct. This investigation is unique as it frames the index of employee wellbeing with specifications of a formative measurement model. To the best of the authors’ knowledge, no published study so far has measured EWB as a formative construct.

Originality/value

Many earlier studies have incorporated a unidimensional approach to individual wellbeing and lacked a crucial outlook of having multi-dimensional understanding of the employee wellbeing construct in the social and work context. Furthermore, this paper contributes not only to the existing body of knowledge in employee wellbeing, but also brings forth an important aspect of measurement model specification, i.e. formative measurement model by bringing the specific reasons for taking employee wellbeing as a formative concept.

Details

International Journal of Workplace Health Management, vol. 12 no. 5
Type: Research Article
ISSN: 1753-8351

Keywords

To view the access options for this content please click here
Article
Publication date: 2 July 2018

Paulo Duarte and Suzanne Amaro

This paper aims to discuss the estimation of PLS models with second-order formative constructs as existing research has mainly focused on second-order constructs with a…

Downloads
1518

Abstract

Purpose

This paper aims to discuss the estimation of PLS models with second-order formative constructs as existing research has mainly focused on second-order constructs with a reflective measurement.

Design/methodology/approach

Using a model grounded on Roger’s innovation diffusion theory applied to online travel shopping, an empirical application is used to assess and compare the different approaches used to estimate a formative second-order construct. The proposed model examines the innovations characteristics that have an impact on intentions to purchase travel online, using data from a convenience sample of 1,732 responses.

Findings

The findings show that all approaches produce similar results regarding the path coefficients, the predictive relevance of the model and the explained variance. The main differences between the approaches are related to the weights of the first-order constructs on the second-order construct and the significance of those weights. Several recommendations are made for researchers on which approach to use.

Originality/value

Since most research has focused on second-order constructs with a reflective measurement and there is limited research with formative second-order constructs, this paper provides a comparison of the different approaches typically used to estimate a formative second-order construct and present useful guidelines for researchers to decide the method to analyse a model with second-order constructs and how to assess formative second-order constructs.

研究目的

由于现有文章大多数研究反应性结构的二阶模型, 所以本论文讨论以二阶形成性结构的PLS模型。

研究设计/方法/途径

本论文以罗杰斯的创新扩散模型以基础, 应用其在在线旅游购物行为的研究。通过模型建立和背景研究, 多种预估形成性二阶结构的方法得以比较。建立的模型, 通过1,732份样本采样, 分析了各种对于在线购买旅游产品意图的创新特性。

研究结果

本论文发现, 各种方法产生相似的分析结果, 比如径路系数、模型预测相关、以及被解释变量等。三种方法的主要区别在于, 第一阶段结构与第二阶段结构的比重值, 还有这些比重值的显著程度。本论文结果对于未来理论采用哪种方法做出启示。

研究原创性/价值

由于大多数研究都集中在以反应性二阶结构分析, 很少的文章研究形成性二阶结构。因此, 本论文全面地比较了三种衡量形成性二阶结构的方法, 并且提供有效建议, 采用哪种方式以分析二阶结构, 以及如何衡量形成性二阶结构。

关键词

旅游业、在线旅游购物行为、偏最小二乘回归,二阶形成性结构

纸张类型

研究论文

To view the access options for this content please click here
Article
Publication date: 5 October 2012

Thomas Mayr and Andreas H. Zins

The purpose of this paper is to test and compare different conceptual approaches for perceived value in a service context.

Downloads
2958

Abstract

Purpose

The purpose of this paper is to test and compare different conceptual approaches for perceived value in a service context.

Design/methodology/approach

Perceived value is an outcome construct that results from various benefits received and sacrifices devoted to achieve a particular exchange of a service. The paper compares three different modeling approaches (Type 1, Type 2, and Type 4) for perceived value using data from an in‐flight survey. The questionnaire covered topics such as perceived service quality and overall satisfaction, price perception, customer value, and customer retention.

Findings

The theoretical discussion repeatedly emphasizes that only the formative modeling of perceived value fits the arguments put forward in the existing literature. This study replicates and extends a study by Lin et al. in the airline service context. The paper reports details about the impact of the proposed seven “get” and “give” components, together with an analysis of the consequences perceived value has on satisfaction, loyalty, and word‐of‐mouth.

Research limitations/implications

The findings suggest extensions and improvements concerning measurement and conceptual issues.

Practical implications

Perceived value shows a substantial effect on behavioral consequences. Service operations must observe the perception of atmospherics emerging from the main service encounters next to considering functional aspects.

Originality/value

Misconceptualizations of multi‐item constructs are well known. However, critical discussions and empirical tests are still scarce in the tourism field. This paper tests and compares different conceptual approaches for perceived value in a service context.

Details

International Journal of Culture, Tourism and Hospitality Research, vol. 6 no. 4
Type: Research Article
ISSN: 1750-6182

Keywords

To view the access options for this content please click here
Article
Publication date: 3 April 2017

Harindranath R.M. and Jayanth Jacob

In pharmaceutical marketing, salespeople require promotional instruments to satisfy and retain their customers (physicians), but companies ignore the need because of the…

Abstract

Purpose

In pharmaceutical marketing, salespeople require promotional instruments to satisfy and retain their customers (physicians), but companies ignore the need because of the costs involved. It appears that the importance of promotional support is understood differently by managers and sales representatives. This study aims at developing a new construct called “promotional support”, as a resource support provided to salespeople to help them satisfy customer needs and achieve sales goals.

Design/methodology/approach

A detailed review of literature is followed by in-depth interviews to create items for the construct “promotional support”. Substantive validity is performed for identification of items measuring the construct. To initially validate the measures, a vignette study is performed. Formative index development procedure is followed. Data from a sample of 124 pharmaceutical sales representatives are collected and analyzed.

Findings

A formative construct is developed which possesses convergent (redundancy analysis) and nomological validity. The results of post hoc validation tests like confirmatory tetrad analysis and inter-item correlation are satisfactory and confirm the authors’ conceptualization.

Research limitations/implications

The scale requires external validation by testing it with different samples such as managers of pharmaceutical firms.

Practical implications

This study will help managers of pharmaceutical firms gain insights into the role and importance of promotional inputs given to their sales representatives.

Originality/value

This study uses the formative scale development procedure to develop promotional support. This construct can be used to understand the effect of promotional support given to pharmaceutical sales representatives on other constructs, which in turn helps in theory-building.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 11 no. 1
Type: Research Article
ISSN: 1750-6123

Keywords

To view the access options for this content please click here
Article
Publication date: 9 January 2017

Sungbum Park, Heeseok Lee and Seong Wook Chae

Most empirical balanced scorecard (BSC) studies have shown a tendency to wrongly employ reflective indicators instead of the more theoretically suitable formative

Downloads
2063

Abstract

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.

Details

International Journal of Productivity and Performance Management, vol. 66 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

To view the access options for this content please click here
Article
Publication date: 1 January 2006

Adamantios Diamantopoulos

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

Downloads
4635

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.

Details

Journal of Modelling in Management, vol. 1 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

To view the access options for this content please click here
Article
Publication date: 1 September 2005

Chien‐Hsin Lin, Peter J. Sher and Hsin‐Yu Shih

To propose an alternative model specification for better conceptualizing the definition of a customer perceived value construct, and to discuss the theoretical…

Downloads
8014

Abstract

Purpose

To propose an alternative model specification for better conceptualizing the definition of a customer perceived value construct, and to discuss the theoretical justification of the model.

Design/methodology/approach

The proposed model was elaborated based on theoretical contexts. Three models of different conceptualization specifications were estimated and compared with eTail service value survey data.

Findings

Based on theory, perceived value should be conceived as a formative construct. The empirical results demonstrated different parameter estimates and thus conclusions are drawn from different conceptualization methods.

Research limitations/implications

Future research is suggested to apply the proposed formative value model in other marketing settings, and to explore the role of consumer satisfaction in post‐purchase behavior.

Practical implications

Marketing resources allocation and communication programs may be influenced due to different conceptualization methods of value construct applied by practitioners.

Originality/value

This paper provides a theoretical rationale for conceptualizing perceived value with formative specification. It stresses that the theoretical justification is a major concern for determining conceptualization models.

Details

International Journal of Service Industry Management, vol. 16 no. 4
Type: Research Article
ISSN: 0956-4233

Keywords

1 – 10 of over 6000