Threats to the Validity of Logistics and Supply Chain Management Research

To increase the relevance of logistics and supply chain academic research, this paper recommends the development and testing of middle‐range theory and practice‐level theory. Yet, there are a number of research issues that arise when academic researchers test middle‐range and practice‐level theory, both in measuring constructs and in testing theoretical relationships between constructs. Concerning the measurement of constructs, this paper recommends that academic researchers pay more attention to content validity and undertake rigorous processes to ensure content validity. In addition, academic researchers need to more explicitly define constructs as either reflective or formative. If the construct is defined as formative, then the traditional statistical approaches to validate these measurement scales are not recommended. The appropriate use of employing single‐item measures for concrete constructs is discussed. In regard to conducting hypothesis tests, research issues associated with multicollinearity and omitted variable bias are discussed. Relative weight analysis is ideal for testing theoretical models and research hypotheses when survey data are obtained, multicollinearity is present, and there are a large number of independent variables predicting a dependent variable. Thus, relative weight analysis is ideal for testing research hypotheses in logistics and supply chain management.     

How Does Consumers' Financial Vulnerability Relate to Positive and Negative Financial Outcomes? The Mediating Role of Individual Psychological Characteristics

Vulnerable consumers are at particular risk of financial detriment due to, for example, low financial literacy or numeracy, high debt, low income, or impactful changes in personal circumstances. We introduce a comprehensive and formative measure of financial vulnerability that integrates these risk factors and is grounded in definitions of vulnerability from financial regulation bodies and government agencies such as the Consumer Financial Protection Bureau. Across three studies of US individuals, we assess the nomological validity of this measure of financial vulnerability through its relationship with positive and negative financial outcomes (e.g., savings levels, paying credit card balances in full each month, being in arrears) as well as relevant psychological characteristics (e.g., personal savings orientation [PSO], money management skills, financial self‐efficacy). Moreover, we examine whether and how these psychological characteristics mediate the relationship between financial vulnerability and financial outcomes. We conclude with an overview of implications for policy makers and business practitioners.     

Advancing formative measurement models

Formative measurement models were first introduced in the literature more than forty years ago and the discussion about their methodological contribution has been increasing since the 1990s. However, the use of formative indicators for construct measurement in empirical studies is still scarce. This paper seeks to encourage the thoughtful application of formative models by (a) highlighting the potential consequences of measurement model misspecification, and (b) providing a state-of-the art review of key issues in the formative measurement literature. For the former purpose, this paper summarizes findings of empirical studies investigating the effects of measurement misspecification. For the latter purpose, the article merges contributions in the psychology, management, and marketing literatures to examine a variety of issues concerning the conceptualization, estimation, and validation of formative measurement models. Finally, the article offers some suggestions for future research on formative measurement.     

Formative versus reflective measurement models: Two applications of formative measurement

This paper presents a framework that helps researchers to design and validate both formative and reflective measurement models. The framework draws from the existing literature and includes both theoretical and empirical considerations. Two important examples, one from international business and one from marketing, illustrate the use of the framework. Both examples concern constructs that are fundamental to theory-building in these disciplines, and constructs that most scholars measure reflectively. In contrast, applying the framework suggests that a formative measurement model may be more appropriate. These results reinforce the need for all researchers to justify, both theoretically and empirically, their choice of measurement model. Use of an incorrect measurement model undermines the content validity of constructs, misrepresents the structural relationships between them, and ultimately lowers the usefulness of management theories for business researchers and practitioners. The main contribution of this paper is to question the unthinking assumption of reflective measurement seen in much of the business literature.     

AUTOFLEX: marketing flexibility measurement scale for automobile companies

Undergirded by theoretical foundation of extant literature, this article conceives, conceptualizes, constructs, develops and validates marketing flexibility measurement scale (AUTOFLEX) for automobile companies. Study uses two stages of empirical data analysis in order to first develop and then validate AUTOFLEX scale. AUTOFLEX scale developed in this research is 26-item scale of six different dimensions: Price, Customer Orientation, Product, Place, Promotion and Structural Hierarchy. Scale confirms to various tests of reliability and validity as shown by exploratory and confirmatory factor analysis. Study discusses direction of future research on marketing flexibility in addition to listing its limitations. Academic as well as managerial implications of AUTOFLEX scale are also mentioned in final section of study.     

Combining Sources of Preference Data for Modeling Complex Decision Processes

We review current state-of-the-art practices for combining preference data from multiple sources and discuss future research possibilities. A central theme is that any one data source (e.g., a scanner panel source) is often insufficient to support tests of complex theories of choice and decision making. Hence, analysts may need to embrace a wider variety of data types and measurement tools than traditionally have been considered in applied decision making and choice research. We discuss the viability of preference-stationarity assumptions usually made when pooling data, as well as random-utility theory-based approaches for combining data sources. We also discuss types of models and data sources likely to be required to make inferences about and estimate models that describe choice dynamics. The latter discussion is speculative insofar as the body of literature on this topic is small.     

Diffusion and Adoption of Good Science: Overcoming the Dominant Logic of NHST and the Reporting of Rubbish

ABSTRACT Purpose: This article describes and explains the arrival of the current tipping-point in shifting from bad-to-good science. This article identifies Hubbard (2016a) as a major troublemaker in attacking the current dominant logic supporting bad science, that is, null hypothesis statistical testing (NHST) in management science.

Focus: Crossing the tipping-point is occurring now (2016–2017) from bad-to-good in the behavioral and management sciences. Because of the occurrence of supporting conditions, continuing to ignore the vast amount of criticism of bad science is no longer possible. Bad science includes the pervasive use of directional predictions (i.e., “as X increases, Y increases”) and NHST. The time is at hand to replace both with a good science: computing with words (CWW) to predict outcomes accurately and consistently, constructing models on a foundation of complexity theory, and testing models using somewhat precise outcome testing.

Recommendations: Achieving parsimony does not equate with achieving simplicity and the shallow analysis of only predicting directional relationships. Researchers need to build the requisite variety into models and predict precise outcomes. Doing so requires recognizing the relevancy of equifinality (alternative configurations occur that indicate the same outcome), sign reversals, and causal asymmetry tenets of complexity theory. Testing for predictive validity of models using additional samples is a must.

Managerial implications: Executives benefit from learning that CWW accurately is possible; do not accept models of only directional predictions; demand substance in research findings; look at the XY plots of CWW complex antecedent statements and both simple and complex outcomes that you need to know about (e.g., purchase behavior).     

Materialism through the eyes of Polish and American consumers

The research applies the Material Values Scale (MVS; Richins and Dawson, 1992) cross-culturally by comparing materialism among Polish and American business students. Cultural differences (e.g., greater humanistic/collectivistic/Christian values in Poland) suggest lower MVS scores for Poles than for Americans. This prediction is consistent with the Local Culture hypothesis (i.e., that a strong local culture results in maintenance of traditional values in defense against global forces). Contrary to predictions, data suggest no Polish-American materialism differences, a finding consistent with the globalization hypothesis (i.e., increasing globalization leads to relatively uniform worldwide materialism). As a precursor to hypotheses testing, confirmatory factor analysis (CFA) tests the construct validity and cross-cultural validity of the MVS. The findings suggest substantial difficulties with the scale that limit the confidence in conclusions based on the scale. Based on these findings, future research discussion aims at developing a measure of materialism with potentially greater construct validity for cross-cultural applications.     

A measurement model of the dimensions and types of informal organizational control: An empirical test in a B2B sales context

Sales organizations are replete with informal forms of organizational control. Despite this, marketing and management literature has primarily focused on the theoretical development and empirical testing of formal, managerial forms of control. One reason research on informal controls has lagged is a lack of comprehensive measurement scales. Specifically, existing measures of the three principal types of informal controls—self, social, and cultural—do not capture the full dimensionality of the constructs (i.e., information, reward, and punishment aspects of informal controls). The authors take steps to remedy this situation by (1) outlining nine distinct dimensional types of informal control based on organizational control theory, (2) developing scales to measure the nine informal control constructs in a qualitative field study with 28 B2B salespeople, and (3) empirically validating the scales by establishing their psychometric properties and nomological validity using data collected from a diverse panel of 750 B2B salespeople.     

A correlated uniqueness model of service quality measurement among users of cloud-based service platforms

This research furthers understanding of whether consumers of cloud-based service platforms can distinguish between gap theory dimensions (i.e., expectation and performance) on these platforms. We build upon and extend the work of (Natesan and Aerts, 2016) by applying confirmatory factor analysis on gap scores from survey data to develop and test an improved approach of measuring service system quality in cloud-based service platforms. Using the IS-adapted SERVQUAL instrument, we apply the correlated uniqueness model, which is part of the multitrait-multimethod (MTMM) framework, to evaluate the validity of using GAP scores and account for the effect of the method. There is significant support for method effects as shown by our suggested model paths in the trait convergent validity model with medium-large factor coefficients. Additionally, the fit of the correlated uniqueness model indicates respondents can distinguish between the gap theory dimensions of the IS-adapted SERVQUAL instrument. The praxis of service quality measurement could benefit by using our measurement approach of incorporating error correlations.     

Testing a Measurement Model of Financial Capability Among Youth in Ghana

Youth may benefit from having enhanced financial knowledge and skills and access to financial services to help them navigate transitions to adulthood, though reliable and valid measures of youth financial capability to help assess financial education and inclusion intervention outcomes are lacking. Using survey responses from 5,451 youth ages 12–18 in Ghana, we used exploratory and confirmatory factor analysis to assess 18 survey items concerning youth financial behavior and understanding and attitudes concerning financial services. A 12‐item, group invariant scale (α = .72) with three latent factors was retained in a well‐fitting model that may help practitioners assess financial education and inclusion outcomes. We found that six items were poor indicators of youth financial capability, possibly because these items measure other constructs like numeracy, or because these items were not sufficiently assessed for developmental and cultural validity using qualitative methods like cognitive interviewing.     

Entrepreneurial Orientation versus Small Business Orientation: What Are Their Relationships to Firm Performance?

This study examines the constructs of entrepreneurial orientation (EO) versus small business orientation (SBO), their impact on small business performance, and whether these effects are moderated by longevity. A sample of 267 small business owners from 11 small–medium downtowns was used in structural equation modeling (SEM) testing of the measurement, structural and moderation hypotheses. The measurement confirmatory factor analyses models of the two constructs revealed that EO and SBO are unique constructs. Then a structural model predicting performance was tested. Finally, a two‐group model split on “below 11 years” versus “11+ years” demonstrated that the structural paths connecting EO and SBO to performance are not the same in these groups: for the younger group, only EO significantly predicts performance while for the older group, only SBO significantly predicts performance.     

Specifying formatively-measured constructs in endogenous positions in structural equation models: Caveats and guidelines for researchers

Formatively-measured constructs (FMCs) are increasingly used in marketing research as well as in other disciplines. Although constructs operationalized by means of formative indicators have mostly been placed in exogenous positions in structural equation models, they also frequently occupy structurally endogenous positions. The vast majority of studies specifying endogenously-positioned FMCs have followed the common practice of modeling the impact of antecedent (predictor) constructs directly on the focal FMC without specifying indirect effects via the formative indicators. However, while widespread even in top journals, this practice is highly problematic as it can lead to biased parameter estimates, erroneous total effects, and questionable conclusions. As a result both theory development and empirically-based managerial recommendations are likely to suffer. Against this background, the authors offer appropriate modeling guidelines to ensure that a conceptually sound and statistically correct model specification is obtained when a FMC occupies an endogenous position. The proposed guidelines are illustrated using both covariance structure analysis (CSA) and partial least squares (PLS) methods and are applied to a real-life empirical example. Implications for researchers are considered and ‘good practice’ recommendations offered.     

Measurement Characteristics of Aaker's Brand Personality Dimensions: Lessons to be Learned from Human Personality Research

By referring to research on the measurement of the Big Five personality factors, this article investigates measurement characteristics of brand personality (BP) dimensions. The authors apply a meta‐analysis and investigate the intercorrelations and reliabilities of the BP dimensions of Sincerity, Excitement, Competence, Sophistication, and Ruggedness, as suggested by Aaker (1997). Similar to the Big Five personality factors, the measurement of BP reveals interdependence of the dimensions and one General Personality Factor. Furthermore, the reliabilities reveal instability across method characteristics, for instance, the use of facets as opposed to traits in measuring BP drives up the reliabilities of those dimensions with a larger number of items (e.g., Sincerity). Finally, as with the Big Five, the BP dimensions show differential effects on performance measures (as assessed by brand attitude) and thus support the predictive power of the single dimensions. The findings provide insights into the dimensional structure of BP and its stability, and support the transferability of the Big Five personality factors to nonhuman domains. Importantly, the article outlines relevant avenues for future research on BP measurement.     

Confirmatory tetrad analysis in PLS path modeling

The authors propose a CTA-PLS assessment routine for measurement models. This routine applies confirmatory tetrad analysis (CTA) in a manner which is consistent with partial least squares (PLS) path modeling assumptions. The conceptualization employs a bootstrapping procedure to accomplish an appropriate statistical test examining vanishing tetrads in CTA-PLS. The approach allows distinguishing a formative indicator specification from a reflective indicator specification. Applications using experimental and empirical data demonstrate the usefulness and effectiveness of CTA-PLS. As a means of evaluating PLS path modeling results, the routine assists researchers in avoiding potentially unrepresentative consequences of measurement model misspecification.     

Impulsive purchasing in grocery shopping: Do the shopping companions matter?

Impulsive purchasing occurs when consumers succumb to urges to make purchases without careful evaluation. Unlike research examining personal factors as the predictors of impulse purchase behavior, our study incorporates internal and external factors by exploring the interpersonal influences of different types of shopping companions. A survey was conducted with 791 participants who indicated the types of companions they accompany when grocery shopping and reported how each type influences their purchase decisions. Results show that parents and spouses are the most common shopping companions and the most influential on the shoppers' impulse purchase decisions compared to other types of companions (e.g., significant others, colleagues, children, friends, and other shoppers). Additionally, the effect of different shopping companions varies based on the shoppers' internal characteristics and the social distance between the shopper and the shopping companion. Finally, while individual factors (e.g., age, gender, income, education, impulsivity, and emotional susceptibility) significantly affect shoppers’ impulse purchase decisions, the magnitude and direction of the effect of these factors differ significantly based on the type of shopping companion.     

The Use of Accommodation in Buyer–Seller Relationships: Encouraging or Controlling Opportunism in Business Markets Middle-grounds

ABSTRACT

Purpose: In the past decades, marketing researchers have explored different strategies to control opportunism in buyer–seller relationships. Accommodation, the cooperative response to partners’ exploitive behavior in exchange relationships, has received increasing attention from research on interfirm relationships. However, less is known about whether accommodation is an effective response strategy for controlling opportunism. Drawing on the self-enforcing agreement literature, this article focuses on exploring (1) what drives a firm’s accommodation response to its partner’s exploitive behavior, (2) how a firm’s accommodation helps govern its exchange partner’s opportunistic behavior, and (3) whether monitoring magnifies or buffers the effect of accommodation on the exchange partners’ opportunism.

Methodology: The survey data were collected from 173 seller-firms in Guangdong, Shanghai, Beijing, Wuhan, and Zhengzhou, representing the south, east, north, and middle regions of China. The initial questionnaires were distributed mainly by mail. By assessing the nonresponse bias and the potential bias of early and late responses, we detected no significant differences, implying that the aforementioned biases are not a concern. Because PLS can readily model both formative and reflective constructs, and accommodation is a formative construct, we deployed the SmartPLS software program to test our model.

Findings: This article enables a deeper understanding of accommodation as a response strategy in buyer–seller relationships. The data analysis offers supportive evidence that a firm’s level of accommodation is positively related to two exchange attributes: joint-specific investments and observability of the exchanges. Accommodation, as a cooperative response strategy, curtails opportunism in buyer–seller relationships, and such a curtailing role is magnified when accompanied with monitoring.

Originality/value/contribution: The authors develop a framework to examine previously untested relationships, which suggest accommodation is a cooperative response strategy to mitigate opportunism. We also contribute by exploring the antecedents of accommodation from the tangible transaction attributes perspective. Specifically, two exchange attributes, joint-specific investments and observability, can explain the emergence of accommodation. In addition, we examine the combined effect of competitive response strategies and cooperative response strategies on controlling partner opportunism. That is, competitive response strategies (i.e., monitoring) strengthen the governing effect of cooperative response strategies (i.e., accommodation).     

Dimensions of effective CSR communication based on public expectations

Through surveying a representative sample of the general public about what they expect from companies’ corporate social responsibility (CSR) communication, this study empirically examines predictors to evaluate CSR communication. An initial measurement was identified through an exploratory factor analysis, and the initial measurement model was refined via a confirmatory factor analyses. The study identified six essential CSR communication dimensions: (1) informativeness, (2) third-party endorsement, (3) personal relevance, (4) message tone, (5) consistency, and (6) transparency. These six constructs revealed satisfactory reliability, discriminant validity, and convergent validity. The findings offer an integrated theoretical and methodological basis for evaluating effective CSR communication practice, filling an important missing link between CSR activities and their outcomes.     

A triadic framework for collaborative consumption (CC): Motives,activities and resources & capabilities of actors

Collaborative consumption (CC) is an increasingly prevalent form of exchange. CC occurs within a triangle of actors: a platform provider (e.g., Uber), a peer service provider (e.g., an Uber driver) and a customer. The platform provider's main role is matchmaking, so that a customer can access assets of a peer service provider. This paper has three objectives. First, this article identifies three criteria to delineate CC from related constructs such as access-based consumption, sharing or renting. Second, it introduces a literature-based framework explicating the roles of the actors in the CC triangle along three dimensions: motives, activities and resources and capabilities. Third, it highlights areas for further research, such as the dynamics of CC, context-dependent motives and the emergence of professional (peer) service providers.     

Does attitudinal loyalty influence behavioral loyalty? A theoretical and empirical study

Despite a plethora of studies on brand loyalty spanning over last three decades, the research paradigm is unique in its inability to produce generalizable results. The research suffers from a lack of agreement over the operationalization of the construct of the brand loyalty. Many researchers [e.g., Kahn, B.E., Kalwani, M.U., Morrison, D.G., 1986. Measuring variety seeking and reinforcement behaviors using panel data. Journal of Marketing Research 23, 89–100; Ehrenberg, A.S.C., Goodhardt, G.J., Barwise, P.B., 1990. Double jeopardy revisited. Journal of Marketing 54, 82–91] have defined brand loyalty only from a behavioral perspective. They assumed that repeat purchasing can capture the loyalty of a consumer towards the brand of interest. Other researchers [e.g., Day, G.S., 1969. A two-dimensional concept of brand loyalty. Journal of Advertising Research 9, 29–35; Dick, A.S., Basu, K., 1994. Consumer loyalty: towards an integrated conceptual approach. Journal of the Academy of Marketing Science 22 (2), 99–113; Baldinger, A.L., Rubinson, J., 1996. Brand loyalty: the link between attitude and behavior. Journal of Advertising Research 36 (6), 22–34; Rundle-Thiele, S.R., Bennett, R., 2001. A brand for all seasons: A discussion of loyalty approaches and their applicability for different markets. Journal of Product and Brand Management 10 (1), 25–37; Rundle-Thiele, S.R., 2005. Elaborating customer loyalty: exploring loyalty to wine retailers. Journal of Retailing and Consumer Services 12 (5), 333–344], however, have suggested that attitude should be included along with behavior to define loyalty. In particular, Dick and Basu (1994) were precise in suggesting that a favorable attitude and repeat purchase were required to define loyalty. By viewing loyalty as an attitude–behavior relationship in their framework, Dick and Basu (1994) were able to investigate the concept from a causal perspective thereby permitting the identification of the factors that influence loyalty.Our research extends the idea proposed by Dick and Basu (1994) in two ways. First, we provide a conceptually clear, and an operationally meaningful way of segmenting the market on the basis of attitudes that govern this behavior. To be specific, we offer a unique way to measure attitudinal loyalty. And we use a unique survey data with a large sample of 1800 respondents that includes both behavioral (purchase) patterns and attitudes of the respondents for all major brands of toothpaste, to demonstrate that behavioral loyalty is influenced by attitudinal loyalty across many brands of the toothpaste category. Finally, we propose that a third behavioral pattern—non-user—should be also included along with two known behavioral patterns viz. single user and multiple user. This is because a non-user has the potential to become a consumer in future.