- Volume 11 Issue 3
Although the methodological literature is replete with advice regarding the development and validation of multi-item scales based on reflective measures, the issue of index construction using formative measures has received little attention. The aim of this paper is to enhance researchers' understanding of formative measures of high-order factor and assist them in their index construction efforts. This article is also to provide some insights into the nature of formative indicators for researchers to reach an informed choice as to the appropriate high order formative measurement model for their needs. We first provide a brief background on formative indicators, drawing from the limited and fragmented literature on the topic. Next we give an example of constructing an index based on actual survey data and highlight the procedures used to assess its quality. We conclude the article with some thoughts about the use of indexes in empirical studies.
Formative Measurement;Reflective Measurement;High-order Factor;Structural Equation Model