Higher-Order Models with Reflective Indicators: A Rejoinder to a Recent Call for their Abandonment
- Author(s)
- Dirk Temme, Adamantios Diamantopoulos
- Abstract
Purpose - Higher-order factor models have recently been dismissed as a ‘misleading’, ‘meaningless’, and ‘needless’ approach for modeling multidimensional constructs (Lee and Cadogan, 2013; L&C, 2013 hereafter). The purpose of this paper is to show that – in contrast to L&C’s (2013) verdict – higher-order factor models are still a legitimate operationalization option for multidimensional constructs.
Design/methodology/approach - Basic conceptual and statistical premises of L&C’s (2013) arguments against higher-order factor models are scrutinized both conceptually and statistically as to their logic and validity.
Findings - A thorough analysis of L&C’s (2013) arguments shows that they are fundamentally flawed both conceptually and statistically, rendering their conclusions invalid.
Research limitations/implications - Researchers should not remove the well-established higher-order factor models from their methodological toolkit. Furthermore, empirical findings should not automatically be considered suspect simply because higher-factor models have been used to model multidimensional constructs.
Originality/value - So far L&C’s (2013) arguments against higher-order factor models have gone unchallenged in the literature. This rejoinder is a first, much needed attempt to protect applied researchers from getting the false impression that by using higher-factor models they rely on a ‘misleading’ or 'meaningless' modeling approach.- Organisation(s)
- Department of Accounting, Innovation and Strategy
- External organisation(s)
- Bergische Universität Wuppertal
- Journal
- Journal of Modelling in Management
- Volume
- 11
- Pages
- 180-188
- No. of pages
- 9
- ISSN
- 1746-5664
- DOI
- https://doi.org/10.1108/JM2-05-2014-0037
- Publication date
- 08-2015
- Peer reviewed
- Yes
- Austrian Fields of Science 2012
- 502052 Business administration
- Keywords
- ASJC Scopus subject areas
- Decision Sciences(all), Strategy and Management, Management Science and Operations Research
- Portal url
- https://ucris.univie.ac.at/portal/en/publications/higherorder-models-with-reflective-indicators-a-rejoinder-to-a-recent-call-for-their-abandonment(aa7f20ec-fc10-44a2-8e05-d3b8b9e56073).html