The importance of establishing equivalence in measurement prior to conducting substantive cross-country comparisons has long been emphasized in international business research. However, all approaches currently available for the investigation of measurement equivalence or invariance (ME/I) assume that the focal measures are reflective in nature. In our paper we offer guidelines for the assessment of ME/I when the focal construct is measured with formative indicators. We first identify distinct types of ME/I that are conceptually consistent with the nature of formative measurement models. We then describe a step-by-step procedure that can be employed to test for these types of ME/I in a comparative context. Lastly, we illustrate the application of the proposed procedure with data from a three-country survey on consumers product-country image perceptions.

Cross-cultural research/measurement issues, Equivalency, Measurement and scale development issues, Structural equation modeling
Journal of International Business Studies
Sprott School of Business

Diamantopoulos, A. (Adamantios), & Papadopoulos, N. (2010). Assessing the cross-national invariance of formative measures: Guidelines for international business researchers. Journal of International Business Studies, 41(2), 360–370. doi:10.1057/jibs.2009.37