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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.

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.

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.

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.

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.

This study examines the quality of work-life (QoWL) as a formative construct and validates the scale in an Indian context. Taking a cue from the two-factor (Herzberg) theory, the study developed and validated a formative assessment model of QoWL in the current scenario.

Cross-sectional data and a self-administered questionnaire were used to analyze the QoWL scale based on a sample of 841 respondents from IT/ITES, BFSI, CPG and manufacturing sectors. Indicators/items of QoWL were considered a first-order reflective construct, and factors of QoWL were considered second-order formative construct in the study. Embedded two-stage approach was used to assess the antecedent construct in the model in which QoWL was measured with seven formative indicators in stage one, and all the constructs of the QoWL are measured with a single item (Global_QWL, i.e. the essence of all constructs) in stage two.

The study found QoWL as a formative construct with seven significant dimensions; namely, hygiene factors included fairness in compensation (FC), job security (JS), interpersonal relationship (IR), health and wellbeing (HWB), where motivational factors had rewards and career growth (RG), work-life balance (WLB) and learning and development (LD). The study also indicated the strong association of a single item (global_QWL) with all constructs of QoWL. The study findings conceptualize a QoWL as a formative construct within the mentioned sector and can be generalized and extended to other sectors of the economy as well.

Future researchers can take guidance to deal with the formative construct in the development and validation of scale in various topics in the field of HRM. Future researchers can extend the study across cities and different sectors.

In this VUCA world, employees have to be constantly on their toes to ensure their organization remains relevant. In this context, the least organization can do for their employees is to offer a conducive environment and favorable QoWL. This study aims to assist the key decision-makers in applying the QoWL index as a formative construct and aiding them in improving the quality of their decisions.

Researcher believes that applying the QoWL index as a formative construct can aid decision-makers in improving the quality of their decisions by equipping them with relevant inputs and knowledge. Government can focus on the employees' welfare and introduce the current motivational and hygiene factors in the area of quality of life of the Indians.

Formative assessment measurement of QoWL model was validated with the two-factor theory to understand the work environment of India in the private sector across different sectors. The unique finding of the study was a single item (global_QWL) to conclude the QoWL index as a formative construct by redundancy analysis.

While the conceptualization and operationalization of export performance has been receiving increased attention in the literature, practically all multi‐item measures of export performance available are based on reflective (effect) indicators. Explores an alternative measurement approach based on formative (causal) indicators and examines the implications of constructing an index rather than a scale of export performance. The aim is to assist researchers in choosing the appropriate measurement model for their needs when conducting substantive export performance studies.

The purpose of this study is to review the use of partial least squares-structural equation modeling (PLS-SEM) in the field of hospitality and tourism and thereby to assess whether the PLS-SEM-based papers followed the recommended application guidelines and to investigate whether a comparison of journal types (hospitality vs tourism) and journal qualities (top-tier vs other leading) reveal significant differences in PLS-SEM use.

A total of 206 PLS-SEM based papers published between 2000 and April 2017 in the 19 SSCI-indexed hospitality and tourism journals were critically analyzed using a wide range of guidelines for the following aspects of PLS-SEM: the rationale of using the method, the data characteristics, the model characteristics, the model assessment and reporting the technical issues.

The results reveal that some aspects of PLS-SEM are correctly applied by researchers, but there are still some misapplications, especially regarding data characteristics, formative measurement model evaluation and structural model assessment. Furthermore, few significant differences were found on the use of PLS-SEM between the two fields (hospitality and tourism) and between the journal tiers (top-tier and other leading).

To enhance the quality of research in hospitality and tourism, the present study provides recommendations for improving the future use of PLS-SEM.

The present study fills a sizeable gap in hospitality and tourism literature and extends the previous assessments on the use of PLS-SEM by providing a wider perspective on the issue (i.e. includes both hospitality and tourism journals rather than the previous reviews that focus on either tourism or hospitality), using a larger sample size of 206 empirical studies, investigating the issue over a longer time period (from 2000 to April, 2017, including the in-press articles), extending the scope of criteria (guidelines) used in the review and comparing the PLS-SEM use between the two allied fields (hospitality and tourism) and between the journal tiers (top-tier and other leading).

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

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

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.

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

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.

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.

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.

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.

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.

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。

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。

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。

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。

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

研究论文

The purpose of this paper is to test the properties of the well-known three-dimensional adjustment scale, established by Black et al. (1988, 1989), namely, its dimensionality and internal consistency. The theoretical basis of the construct is discussed in relation to formative and reflective measurement approaches.

Two different ways of organizing the adjustment items (random/non-random) were used to assess the internal consistency of the three-dimensional adjustment scale. The quantitative analysis presented is based on survey data from 468 assigned expatriates in Asia that were subjected to an exploratory and confirmatory factor analysis as well as a structural equation modeling – more specifically the multiple indicators multiple causes model (MIMIC).

The study revealed that the adjustment construct is possibly misspecified, especially the general adjustment dimension, that was tested as a formative, not a reflective scale. There is further evidence that the wrong measurement approach skewed the coefficient that connects adjustment to performance, which is the key construct in its nomological network. Moreover, the dimensionality and the internal consistency of the scale are deteriorated to a large extent by randomization of the items. The findings highlight the need for a clear concept definition that would lead to an appropriate operationalization of the construct.

The study is one of the few rigorously testing the properties of a construct that has been used for almost 30 years, thus yielding some novel conclusions about its stability and consistency.

Social entrepreneurship has become a growing field of research interest. Yet, past research has been held back by the lack of a rigorous measurement instrument. Rather than defining social entrepreneurship as an organizational form that a venture does or does not have, this paper agrees with Dees and Anderson (2006) that the construct is better thought of as a set of practices, processes and behaviors that organizations can engage in to a higher or a lesser degree. In other words, the construct is a set of behaviors that any organization can engage in. The purpose of the paper is to develop scale items to measure the construct of organizational social entrepreneurship (OSE).

Drawing on previous literature, this paper first develops and then validates scales for measuring OSE as a third-order formative construct. As its second order, the scale includes three components that capture the heterogeneity of the OSE concept: social change intention, commercial activity and inclusive governance.

The OSE scale is developed and tested through a sample of 182 nascent social enterprises from 55 different countries in the world and then revalidated using a second sample of 263 mature social enterprises from 6 European countries. Results suggest that the scale items exhibit internal consistency, reliability, construct validity and nomological validity.

The scale presented here offers an important new venue for social entrepreneurship theorizing. First, it allows scholars to take a broad approach toward a diverse field and to study OSE behavior in any empirical field in which it may occur. Second, the scales also allow for more focused theorizing. Scholars are encouraged to delve into the antecedents of all three components presented here and to study the different performance effects they have in terms of likelihood to survive, growth rate or potential to achieve financial sustainability.

The paper develops a multidimensional construct for OSE. In particular, the authors propose scale items for three central components of social entrepreneurship, namely, social change intentions, commercial activities and inclusive governance. The scales thus measure the three formative dimensions identified by Dees and Anderson (2006) and Defourny and Nyssens (2010).

The increased practitioner and academic interest in negative brand phenomena highlight the need for the development of practical scales to be used for empirical investigations. Therefore, this paper aims to draw on existing conceptualisations to provide a theoretically grounded yet practically oriented scale for examining brand avoidance and its protocols.

The study uses a sample of 575 consumers from two developing countries to create a parsimonious brand avoidance scale. Partial least squares structural equation modelling is used to analyse the data through a systematic formative measurement approach

This paper finds brand avoidance to be a multidimensional, second-order construct with five first-order dimensions: moral avoidance, identity avoidance, deficit–value avoidance, experiential avoidance and advertising-related avoidance. The paper further validates this scale by testing with non-purchase intention and identifies its positive relationship with brand avoidance.

This study fulfils the calls in the literature to provide a measurable scale for studying negative brand phenomena in consumer–brand relationship research.

This paper aims to develop a parsimonious and robust formative index for evaluating and measuring the brand relationship quality of automobile brands.

Survey questionnaires were used to collect empirical data from 395 car owners, out of which 362 samples were included in the final analysis. Partial least squares technique was used for index construction.

The empirical findings exhibit that the automobile brand relationship quality (ABRQ) index based on the final set of six indicators effectively captures the conceptual domain of brand relationship quality. In addition, the external validity check affirms positive and significant influence of ABRQ index toward enhancing customer loyalty.

ABRQ index can assist the brand managers and academicians for benchmarking and market strategy formulation while contributing to the limited literature on brand relationship quality. Also, this index having six-indicators can considerably reduce the time and effort of respondents for filling the questionnaires, in turn, improving response rates.

This study represents a novel attempt to formulate a brand relationship quality index using formative measurement indicators, and as per the authors’ knowledge, has not been attempted by prior researchers in this domain.