Formative Vs. Reflective Measurement Model: Guidelines for Structural Equation Modeling Research

Abstract

Various social sciences researchers have always debated the operationalisation of formative or a reflective measurement in Partial Least Squares Structural Equation Modeling (PLS-SEM). This paper aims to offer guidance on formative and reflective measurement model assessment in PLS-SEM. First, this paper explores and discuss the similarities and differences between the formative and reflective measurement model. Next, this paper reviews the practice of measurement model assessment for formative and reflective construct based on the latest methodological background. Finally, this paper proposes a set of guidelines in classifying the formative and reflective constructs and the steps in assessing the formative and reflective measurement model. This paper addresses the issue of measurement misspecification in PLS-SEM assessment by providing logical guidelines for researchers. This paper also helps to explain and suggest appropriate PLS-SEM assessment for researchers as they plan future research projects.