Reflective and formative metrics of relationship value: Response to Baxter's commentary essay

This article responds to some of the issues Baxter [Baxter R., Reflective and formative metrics of relationship value: a commentary essay. Journal of Business Research; 62: 2009.] raises in his recent commentary essay on the special issue of Journal of Business Research (61/12") on formative indicators. This response shows that poor construct definitions underlie the apparent formative versus reflective controversy and that sound model specifications rest on sound conceptual definitions of the focal construct.

[1]  Dwayne D. Gremler,et al.  Service value revisited: Specifying a higher-order, formative measure , 2008 .

[2]  Eliot R. Smith,et al.  Research methods in social relations , 1962 .

[3]  Manfred Bruhn,et al.  Customer equity management as formative second-order construct , 2008 .

[4]  John C. Narver,et al.  The Effect of a Market Orientation on Business Profitability , 1990 .

[5]  H. Gemünden,et al.  Value Creation in Buyer–Seller Relationships: Theoretical Considerations and Empirical Results from a Supplier's Perspective , 2001 .

[6]  Nathan P. Podsakoff,et al.  The Role of Formative Measurement Models in Strategic Management Research: Review, Critique, and Implications for Future Research , 2006 .

[7]  R. Baxter Reflective and formative metrics of relationship value: a commentary essay , 2009 .

[8]  Andreas Eggert,et al.  Relationship Value in Business Markets: The Construct and Its Dimensions , 2005 .

[9]  Adamantios Diamantopoulos,et al.  Advancing formative measurement models , 2008 .

[10]  Josep Bisbe,et al.  Defining management accounting constructs: A methodological note on the risks of conceptual misspecification , 2007 .

[11]  M. Sheelagh,et al.  Measuring intangible value in business to business buyer-seller relationships: an intellectual capital perspective , 2004 .

[12]  Wolfgang Ulaga,et al.  Investigating customer value in global business markets: Commentary essay , 2011 .

[13]  A. Diamantopoulos,et al.  Narver and Slater, Kohli and Jaworski and the market orientation construct: integration and internationalization , 1995 .

[14]  Bernard J. Jaworski,et al.  Market orientation: The construct, research propositions, and managerial implications. , 1990 .

[15]  Cheryl Burke Jarvis,et al.  A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research , 2003 .

[16]  J. B. Pearson,et al.  Methodology in Social Research. , 1968 .

[17]  J. Wilcox,et al.  Reconsidering formative measurement. , 2007, Psychological methods.

[18]  H. Winklhofer,et al.  Index Construction with Formative Indicators: An Alternative to Scale Development , 2001 .

[19]  Edward E. Rigdon,et al.  Proportional structural effects of formative indicators , 2008 .

[20]  Kenneth S. Law,et al.  Toward A Taxonomy of Multidimensional Constructs , 1998 .

[21]  Henri Barki,et al.  Thar's gold in them thar constructs , 2008, DATB.

[22]  Scott B. MacKenzie,et al.  The dangers of poor construct conceptualization , 2003 .

[23]  K. Bollen Multiple indicators: Internal consistency or no necessary relationship? , 1984 .

[24]  Adamantios Diamantopoulos,et al.  The C-OAR-SE procedure for scale development in marketing: a comment , 2005 .

[25]  H. Costner Theory, Deduction, and Rules of Correspondence , 1969, American Journal of Sociology.

[26]  Youjae Yi,et al.  Assumptions of the Two-Step Approach to Latent Variable Modeling , 1992 .

[27]  Kenneth A. Bollen,et al.  Representing general theoretical concepts in structural equation models: the role of composite variables , 2008, Environmental and Ecological Statistics.

[28]  Judy A. Siguaw,et al.  Formative versus Reflective Indicators in Organizational Measure Development: A Comparison and Empirical Illustration , 2006 .

[29]  William R. Dillon,et al.  The Interaction of Measurement and Structure in Simultaneous Equation Models with Unobservable Variables , 1987 .

[30]  Leslie A. Hayduk,et al.  LISREL Issues, Debates and Strategies , 1996 .

[31]  John R. Nevin,et al.  The Differential Effects of Exercised and Unexercised Power Sources in a Marketing Channel , 1985 .

[32]  Cheryl Burke Jarvis,et al.  The problem of measurement model misspecification in behavioral and organizational research and some recommended solutions. , 2005, The Journal of applied psychology.

[33]  Detmar W. Straub,et al.  Specifying Formative Constructs in Information Systems Research , 2007, MIS Q..

[34]  J. Wilcox,et al.  Questions about formative measurement , 2008 .