Formative versus reflective measurement implications for explaining innovation in marketing partnerships.

Abstract

While standard tests for assessing the reliability of reflective scales exist, the marketing literature places less emphasis on approaches that assist in evaluating formative scales. In this paper we apply the confirmatory tetrads test for the evaluation of formative measurement scales. We do this in the context of a model explaining innovation in marketing partnerships, which includes constructs that are measured using either formative or reflective scales. The findings illustrate the problems associated with the misspecification of measurement scales and related effects on structural model estimations.