Theoretical and Experimental Considerations of Designing a Formative and Reflective Measurement Model

In management research, there is a growing trend towards Formative measurement which measurement indices are considered the cause of Construct. Formative measurement can be a good alternative to reflective measurement, where Construct are considered to be the cause of measurement indices. Incorrect use of Formative and reflective measurement models Weakening the content validity of the Construct, Weakening the structural relationships between Constructs, and Finally, reduces the usefulness of theories in field of practice. Therefore, the purpose of this study is to: A) discuss the distinction between Formative and reflective measurement models, B) developing a set of conceptual criteria to determine whether a structure should be modeled as a composite or reflective index, C) Recommendations for the construction of Formative Construct based on C-OAR-SE method and reflective Construct based on the Churchill paradigm. This paper, based on the research literature to provid a framework for researchers to design and test Formative and reflective measurement models correctly.However, some structures may be inherently Formative or reflective.