Hi, @Fakhar Shahzad, If the formative construct has its indicators explained, I don't see why not. Organizational performance is often a composite variable and should not present any problem in analysis when treated as such. My view.

My understanding is that formative constructs require at least 2 emitting paths for the model to be identified.

This might be a useful place to start-

The use of causal indicators in covariance structure models: Some practical issues.

By MacCallum, Robert C.,Browne, Michael W. Psychological Bulletin, Vol 114(3), Nov 1993, 533-541

Dear Professor Fakhar Shahzad,

What does DV as formative construct in a Structural model exactly mean? If you can explain what it meas, it will be easier to follow the discussion.

Best Regards

Desalegn Abraha

Dear Professor Fakhar Shahzad,

What is the purpose/aim of using DV as formative construct in a Structural model? Understanding the purpose/aim of using DV as formative construct in a Structural model can help and enable us to answer the question how. That is my view.

Best Regards

Desalegn Abraha

Desalegn Abraha Gebrekidan Organizational performance can be measured as operational performance, financial performance, market performance, innovation performance, etc. The purpose of using a formative construct is to measure the overall performance of the organization based on the several sub-dimensions of performance and how several factors contributed to the Org. performance (overall).

Dear Professor Fakhar Shahzad,

Thank you very much for the very clearly written explanation to answer my question above.

Best Regards

Desalegn Abraha

Desalegn Abraha Gebrekidan You are welcome sir.

Can we use DV as formative construct in a Structural model? The question seems to be very interesting and I want to understand it better and deeper by following the discussion. Instead of being based on assumption, after collecting enough knowledge about the subject matter, I will participate in the discussion.

Best Regards

Desalegn Abraha