Purpose – Despite the increasing use of formative measurement models in literature, little is known about potential consequences for substantive theory testing. Against this background, the aims of this chapter are (1) to highlight some problems that may arise when formative instead of...

"Taking the Fear Out of Data Analysis provides readers with the necessary knowledge and skills to understand, perform, and interpret quantitative data analysis effectively. Acknowledging that people often dislike statistics and quantitative methods, this book illustrates that statistical...

Formatively-measured constructs (FMCs) are increasingly used in marketing research as well as in other disciplines. Although constructs operationalized by means of formative indicators have mostly been placed in exogenous positions in structural equation models, they also frequently occupy...