Formative Measurement Models in Covariance Structure Analysis: Specification and Identification
Year: 2006
Type: preprint
Abstract: Many researchers seem to be unsure about how to specify formative measurement models in software programs like LISREL or AMOS and to establish identification of the corresponding structural equation model. In order to make identification easier, a new, mainly graphically-oriented approach is presented for a specific class of recursive models with formative indicators. Using this procedure it is shown that some models have erroneously been considered underidentified. Furthermore, it is shown that specifying formative indicators as exogenous variables rises serious conceptual and substantial issues in the case that the formative construct is truly endogenous (i. e. influenced by more remote causes). An empirical study on the effects and causes of brand competence illustrates this point.
Authors: Dirk Temme, Lutz Hildebrandt
Institution: Humboldt-Universität zu Berlin
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
Funder: Deutsche Forschungsgemeinschaft
Award: G6846759152
OpenAlex ID: W1603802308