Construct Validity in Cross Cultural Management Research : Classical Test Theory and Latent Trait Theory Approaches

As businesses become increasingly global, the field of management stands to benefit from theories, best practices, tools, and techniques that can be used in different cultures. By providing guidelines for theory development and testing, this type of research can enhance the validity and generalizability of management theories and concepts. Cross cultural research can also be used by scholars and policy makers to better understand the comparative implications of theories that have originated in unicultural settings. Despite its importance, there is a paucity of research on the use of appropriate tools and techniques for measuring and comparing constructs across cultures. To address this gap, this paper highlights the importance of investigating conceptual, functional, and measurement equivalence of constructs as a prerequisite for cross cultural comparisons. This study also discusses how two measurement approaches, i.e., classical test theory (CTT) and item response theory (IRT) can be used in conjunction to gainfully investigate equivalence. The use of CTT and IRT models is illustrated via an empirical investigation of the Supplier Reputation Display (SRD) construct by analyzing data collected from US and Canadian automotive service managers. Implications of this research for management theory and practice, and the scope for further research are also discussed