Three Reasons We May Shun the Research Practice That Employs Formative Measurement in the Endogenous Position

When the formative construct is placed in the endogenous position, there are clear theoretical, mathematical, and empirical issues in model estimation. Nonetheless, scholars who have adopted structural equation modeling for empirical research and those who are engaged in debates on the viability of formative modeling fail to recognize the fundamental problems of employing formative measurement in the endogenous position. This manuscript is intended to set a corrective path by discussing three reasons why this frequented practice may be avoided in both theoretical and empirical research.