Interpretation of formative measurement in information systems research

Within the Information Systems literature, there has been an emerging interest in the use of formative measurement in structural equation modeling (SEM). This interest is exemplified by descriptions of the nature of formative measurement (e.g., Chin 1998a), and more recently the proper specification of formatively measured constructs (Petter et al. 2007) as well as application of such constructs (e.g., Barki et al. 2007). Formative measurement is a useful alternative to reflective measurement. However, there has been little guidance on interpreting the results when formative measures are employed. Our goal is to provide guidance relevant to the interpretation of formative measurement results through the…