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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.

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

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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.

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

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Article
Publication date: 14 August 2009

Jim McLoughlin, Jaime Kaminski, Babak Sodagar, Sabina Khan, Robin Harris, Gustavo Arnaudo and Sinéad Mc Brearty

The purpose of this paper is to develop a coherent and robust methodology for social impact measurement of social enterprises (SEs) that would provide the conceptual and…

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Abstract

Purpose

The purpose of this paper is to develop a coherent and robust methodology for social impact measurement of social enterprises (SEs) that would provide the conceptual and practical bases for training and embedding.

Design/methodology/approach

The paper presents a holistic impact measurement model for SEs, called social impact for local economies (SIMPLEs). The SIMPLE impact model and methodology have been tried and tested on over 40 SEs through a series of three day training courses, and a smaller number of test cases for embedding. The impact model offers a five‐step approach to impact measurement called SCOPE IT; MAP IT; TRACK IT; TELL IT and EMBED IT. These steps help SE managers to conceptualise the impact problem; identify and prioritise impacts for measurement; develop appropriate impact measures; report impacts and embed the results in management decision making.

Findings

Preliminary qualitative feedback from participants reveals that while the SIMPLE impact training delivers positive learning experiences on impact measurement and prompts, in the majority of cases, the intensions to implement impact systems, the majority feels the need for follow up embedding support. Paricipant's see value in adopting the SIMPLE approach to support business planning processes. Feedback from two SEs which has receives in‐house facilitates embedding support clearly demonstrates the benefits of working closely with an organisation's staff team to enable effective implementation.

Research limitations/implications

Some key future research challenges are identified as follows: systematically research progress in implementation after training for those participants that do not have facilitated embedding; to further test and develop embedding processes and models (using SIMPLE and other methods) with more SE organisations to identify best practices.

Originality/value

The SIMPLE fills a gap as a tool for holistic impact thinking that offers try and test accessible steps, with robust measures. The innovative steps take SEs through all key impact thought processes from conceptualisation to embedding guidance, feeding into business planning and strategic decision‐making processes. The comparison between the limitations of stand alone impact training and the benefits of facilitated embedding processes is instructive.

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Social Enterprise Journal, vol. 5 no. 2
Type: Research Article
ISSN: 1750-8614

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Article
Publication date: 9 May 2016

Jörg Henseler, Christian M. Ringle and Marko Sarstedt

Research on international marketing usually involves comparing different groups of respondents. When using structural equation modeling (SEM), group comparisons can be…

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Abstract

Purpose

Research on international marketing usually involves comparing different groups of respondents. When using structural equation modeling (SEM), group comparisons can be misleading unless researchers establish the invariance of their measures. While methods have been proposed to analyze measurement invariance in common factor models, research lacks an approach in respect of composite models. The purpose of this paper is to present a novel three-step procedure to analyze the measurement invariance of composite models (MICOM) when using variance-based SEM, such as partial least squares (PLS) path modeling.

Design/methodology/approach

A simulation study allows us to assess the suitability of the MICOM procedure to analyze the measurement invariance in PLS applications.

Findings

The MICOM procedure appropriately identifies no, partial, and full measurement invariance.

Research limitations/implications

The statistical power of the proposed tests requires further research, and researchers using the MICOM procedure should take potential type-II errors into account.

Originality/value

The research presents a novel procedure to assess the measurement invariance in the context of composite models. Researchers in international marketing and other disciplines need to conduct this kind of assessment before undertaking multigroup analyses. They can use MICOM procedure as a standard means to assess the measurement invariance.

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Article
Publication date: 3 January 2020

Tobias Mueller, Meike Huber and Robert Schmitt

Measurement uncertainty is present in all measurement processes in the field of production engineering. However, this uncertainty should be minimized to avoid erroneous…

Abstract

Purpose

Measurement uncertainty is present in all measurement processes in the field of production engineering. However, this uncertainty should be minimized to avoid erroneous decisions. Present methods to determine the measurement uncertainty are either only applicable to certain processes and do not lead to valid results in general or require a high effort in their application. To optimize the costs and benefits of the measurement uncertainty determination, a method has to be developed which is valid in general and easy to apply. The paper aims to discuss these issues.

Design/methodology/approach

This paper presents a new technique for determining the measurement uncertainty of complex measurement processes. The approximation capability of artificial neural networks with one hidden layer is proven for continuous functions and represents the basis for a method for determining a measurement model for continuous measurement values.

Findings

As this method does not require any previous knowledge or expertise, it is easy to apply to any measurement process with a continuous output. Using the model equation for the measurement values obtained by the neural network, the measurement uncertainty can be derived using common methods, like the Guide to the expression of uncertainty in measurement. Moreover, a method for evaluating the model performance is presented. By comparing measured values with the output of the neural network, a range in which the model is valid can be established. Combining the evaluation process with the modelling itself, the model can be improved with no further effort.

Originality/value

The developed method simplifies the design of neural networks in general and the modelling for the determination of measurement uncertainty in particular.

Details

International Journal of Quality & Reliability Management, vol. 37 no. 3
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 27 August 2021

Benny Lianto, Muhammad Dachyar and Tresna Priyana Soemardi

The purpose of this paper is to develop a comprehensive continuous innovation capability (CIC) measurement model in manufacturing sectors.

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47

Abstract

Purpose

The purpose of this paper is to develop a comprehensive continuous innovation capability (CIC) measurement model in manufacturing sectors.

Design/methodology/approach

The development of this CIC model was conducted through three stages of research, i.e. identification of manufacturing continuous innovation measures (MCIMs), development of measurement model, followed by model evaluation and validation. MCIMs were identified using systematic literature review and focus group discussion. Selection process for MCIMs employed the fuzzy Delphi method. To develop measurement model, contextual relationships between MCIMs were assessed using total interpretive structural modeling, followed by measurements of MCIMs weight with the analytical network process method. Then, assessment indicators for each MCIM and criteria were determined as well as mathematical model to measure CIC scores. Model evaluation and validation were performed in two case studies: in an automotive company and an electronics company.

Findings

This research produced 50 criteria and 103 assessment indicators, as well as mathematical model to measure CIC scores. The validation process showed that currently developed model was deemed valid.

Practical implications

The results of this research are expected to provide a practical input for manufacturing company managers in managing their innovation activities systematically and comprehensively.

Originality/value

The CIC model is a new comprehensive measurement model; it integrates three fundamental elements of CI capability measurement, considering all important dimensions in a company and also able to explain contextual relationships between measured factors.

Details

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

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Book part
Publication date: 6 March 2009

Thomas Salzberger, Hartmut H. Holzmüller and Anne Souchon

Measures are comparable if and only if measurement equivalence has been demonstrated. Although comparability and equivalence of measures are sometimes used…

Abstract

Measures are comparable if and only if measurement equivalence has been demonstrated. Although comparability and equivalence of measures are sometimes used interchangeably, we advocate a subtle but important difference in meaning. Comparability implies that measures from one group can be compared with measures from another group. It is a property of the measures, which is given or not. In particular, comparability presumes valid measures within each group compared. Measurement equivalence, by contrast, refers to the way measures are derived and estimated. It is intrinsically tied to the underlying theory of measurement. Thus, measurement equivalence cannot be dealt with in isolation. Its assessment has to be incorporated into the theoretical framework of measurement. Measurement equivalence is closely connected to construct validity for it refers to the way manifest indicators are related to the latent variable, within a particular culture and across different cultures. From this it follows that equivalence cannot, or should not, be treated as a separate issue but as a constitutive element of validity. A discussion of measurement equivalence without addressing validity would be incomplete.

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New Challenges to International Marketing
Type: Book
ISBN: 978-1-84855-469-6

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Article
Publication date: 15 May 2017

Chuangui Yang, Junwen Wang, Liang Mi, Xingbao Liu, Yangqiu Xia, Yilei Li, Shaoxing Ma and Qiang Teng

This paper aims to propose a four-point measurement model for directly measuring the pose (i.e. position and orientation) of industrial robot and reducing its calculating…

Abstract

Purpose

This paper aims to propose a four-point measurement model for directly measuring the pose (i.e. position and orientation) of industrial robot and reducing its calculating error and measurement uncertainty.

Design/methodology/approach

A four-point measurement model is proposed for directly measuring poses of industrial robots. First, this model consists of a position measurement model and an orientation model gotten by the position of spherically mounted reflector (SMR). Second, an influence factor analysis, simulated by Monte Carlo simulation, is performed to investigate the influence of certain factors on the accuracy and uncertainty. Third, comparisons with the common method are carried out to verify the advantage of this model. Finally, a test is carried out for evaluating the repeatability of five poses of an industrial robot.

Findings

In this paper, results show that the proposed model is better than the three-SMRs model in measurement accuracy, measurement uncertainty and computational efficiency. Moreover, both measurement accuracy and measurement uncertainty can be improved by using the proposed influence laws of its key parameters on the proposed model.

Originality/value

The proposed model can measure poses of industrial robots directly, accurately and effectively. Additionally, influence laws of key factors on the accuracy and uncertainty of the proposed model are given to provide some guidelines for improving the performance of the proposed model.

Details

Industrial Robot: An International Journal, vol. 44 no. 3
Type: Research Article
ISSN: 0143-991X

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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.

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4622

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

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Book part
Publication date: 12 November 2021

Kaylee Litson and David Feldon

There is currently a great deal of attention in psychometric and statistical methods on ensuring measurement invariance when examining measures across time or populations…

Abstract

There is currently a great deal of attention in psychometric and statistical methods on ensuring measurement invariance when examining measures across time or populations. When measurement invariance is established, changes in scores over time or across groups can be attributed to changes in the construct rather than changes in reaction to or interpretation of the measurement instrument. When measurement in not invariant, it is possible that measured differences are due to the measurement instrument itself and not to the underlying phenomenon of interest. This chapter discusses the importance of establishing measurement invariance specifically in postsecondary settings, where it is anticipated that individuals' perspectives will change over time as a function of their higher education experiences. Using examples from several measures commonly used in higher education research, the concepts and processes underlying tests of measurement invariance are explained and analyses are interpreted using data from a US-based longitudinal study on bioscience PhD students. These measures include sense of belonging over time and across groups, mental well-being over time, and perceived mentorship quality over time. The chapter ends with a discussion about the implications of longitudinal and group measurement invariance as an important conceptual property for moving forward equitable, reproducible, and generalizable quantitative research in higher education. Invariance methods may further be relevant for addressing criticisms about quantitative analyses being biased toward majority populations that have been discussed by critical theorists engaging quantitative research strategies.

Details

Theory and Method in Higher Education Research
Type: Book
ISBN: 978-1-80262-441-0

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