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Purpose – This chapter presents a framework useful in conducting multicountry marketing and advertising research. For the purpose of illustrating the series of steps involved in conducting such investigations, a six-country study examining global consumer culture positioning (GCCP) is presented. The suggested steps are relevant for the exploration of a wide variety of marketing- and advertising-related topics.

Methodology/approach – Steps essential to a well-planned research design are addressed in detail, including: theory identification, stimuli selection, hypotheses formulation, measurement development, country selection, fictitious ad development, survey design, cross-national data equivalence, and hypotheses testing. Particular attention is given to construct specification (in this case for soft-sell and hard-sell advertising appeals) and fictitious ad development. General consumers in six countries responded to the ads. Specific procedures for validating formative constructs and testing their cross-country equivalency are suggested.

Findings – The chapter provides practical recommendations for conducting cross-cultural research. These recommendations are likely to prove useful to both researchers conducting multicountry investigations, and to instructors teaching graduate-level courses in international marketing and advertising research.

Originality/value of paper – Multicountry research requires a series of challenging decisions. Although a well-planned research design is particularly essential in a cross-cultural setting, little attention has been given in providing researchers and instructors with methodological recommendations. This chapter is intended to be a useful reference for these audiences.

This study aims to examine how the role of peripheral knowledge changes along with the perspectives of vendor and client in inter-organizational IT outsourcing. To this end, this study tests the effects of the peripheral knowledge of vendors and clients on IT outsourcing performance under three different combinations of performance-assessing views from both parties.

To contrast the effects of the peripheral knowledge of vendors and clients based on their views, this study collects matching data on 107 projects from both parties. The survey method is adopted to measure the peripheral knowledge levels of vendors and clients and IT outsourcing success. The associations between peripheral knowledge and IT outsourcing performance are then assessed when the views match, cross and agree to a certain level.

The peripheral knowledge of vendors plays a more significant role than that of clients in most IT outsourcing cases. Moreover, the agreement between the peripheral knowledge of vendors and clients shows a moderating effect only when the performance is assessed by clients than by vendors.

This study contrasts the peripheral knowledge of vendors and clients by altering performance-assessing views in IT outsourcing. This study also rationalizes why the peripheral knowledge of vendors is more important than that of clients, as well as explains whose perspective is more significant when the performance is assessed.

This study aims to investigate the factors that affect an audience's purchase decisions on a new type of social media, namely live video streaming platforms.

This study is based on data from an online survey providing 488 valid responses. These responses are used to test the research model by employing partial least squares (PLS) modeling.

Three antecedents (consumer competitive arousal, gift design aesthetics and broadcaster's image) influence the audience's purchase decisions (impulse buying and continuous buying intention). Chinese impression management (mianzi) acts as a moderator. Self-mianzi, mutual mianzi and other mianzi (i.e. three subtypes of mianzi) moderate the effects of consumer competitive arousal, gift design aesthetics and broadcaster's image on impulse buying.

The findings encourage practitioners developing marketing strategies for live video streaming platforms in the Chinese cultural context to consider peer influence, gift appearance, broadcaster's image and mianzi.

Drawing on the community gift-giving model and face-negotiation theory, this study provides an integrated research model to investigate a new type of social media (live video streaming). It offers insight into virtual gifting behaviors by confirming the effects of three antecedents on the audience's purchase decisions, with mianzi acting as a moderator.

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.

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.

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.

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.

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.

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

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

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.

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.

The purpose of this paper is to report on the development and validation of a consumer power scale comprising a personal and a social power dimension. Personal power refers to consumers’ perceived ability to resist and ignore a firm’s marketing efforts. Social power refers to consumers’ perceived ability to influence a firm’s actions.

Following established scale development procedures, the construct definition and item generation preceded five studies that establish the scale’s dimensionality, psychometric properties and external, predictive and nomological validity.

Consumer power was modeled as a reflective first-order, formative second-order latent construct. The consumer power scale is psychometrically sound and possesses external and discriminant validity with regard to other power-related measures. Consumer power mediates the relation between consumers’ cognitive control and consumer satisfaction and between perceived choice and emotional responses.

This research uses episodic recall tasks to elicit power perceptions in various contexts. Results suggest that the scale is useful in comparative and longitudinal tracking of consumers’ perceptions of power in relation to a firm.

Building on a comprehensive literature review and rigorous scale development, this paper introduces a scale of consumer power that comprises a personal and a social power dimension. A critical analysis of and a predictive validity test of the scale against existing power scales highlight its unique contribution. The scale lends itself to further theory tests regarding antecedents, consequences and moderators of consumer power.

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.

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.

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.

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.

The purpose of this study is to bring about an exhaustive measurement instrument of employee engagement and validate the same in Indian settings.

This descriptive and cross-sectional study initiates with reviewing the available literature in the field of employee engagement to identify factors affecting and the corresponding items defining them. Following the discussion with experts and industry professionals, an instrument was, thus, obtained to administer the primary data from employees working in public and private power companies in India. The study used Partial Least Square-Structural Equation Modeling (PLS-SEM) 3 to demonstrate employee engagement as a first-order reflective and second-order formative construct. Thereafter, reliability and convergent validity were assessed to validate the instrument.

This paper conceptualized employee engagement as a multi-factor construct (nine in numbers). The factors are “Respect”, “Supervisor's support and recognition”, “Growth and development”, “Creative and challenging job”, “Job significance”, “Perceived self-worth”, “performance evaluation and recognition” and “Organizational bureaucracy”. These factors are exhaustive and collectively define employee engagement. Distortion or omission in any of these items may distort the nature of construct as well.

Previous studies have defined the concept of employee engagement as unidimensional and thus observe serious lacunas. This study identified employee engagement as a multi-factor construct that incorporates the exhaustive nature of the organizational setting. Not only this study adds value to the existing body of knowledge in the field of employee engagement but also specify the measurement model as a formative one concerning employee engagement.