Mikko Rönkkö

Can formative latent variables represent psychological concepts? Replication and extension of MacKenzie et al. (2005).

We revisit MacKenzie et al.'s (2005) influential work on bias in path estimates arising from the misspecification of formative latent variable models as reflective ones. Using simulations, we demonstrate that the bias in unstandardized path coefficients reported by MacKenzie et al. is due to scaling differences rather...