pdf - Nyenrode Business Universiteit
pdf - Nyenrode Business Universiteit pdf - Nyenrode Business Universiteit
2.6. CONTRACTIBILITY MIMIC MODEL (APPENDIX A) 53 described by a sample of interchangeable indicators (Bisbe et al. 2007:792). With reflective indicators, one or more indicators are often excluded from the construct. This exclusion can be the result of a factor analysis and/or scale reliability analysis if a poorly fitting survey item is left out of the construct to enhance scale reliability. When measuring with formative indicators, this approach is not recommended because it alters the meaning of the construct. The second group of constructs consists of reflective indicators. Whereas formative constructs cause the latent construct, the reflective measures are its result. The reflective measures in this model are the following: difficulty to assess work (Q25, reversed coding), difficulty to reach agreement on output quality (Q26, reversed coding), and knowledge about the business unit manager’s job performance (Q27). In this case, the reflective indicators are all single-item constructs 34 . Table 2.16 presents the descriptive statistics for the formative and reflective contractibility indicators. Table 2.16: Descriptive Statistics for Contractibility Indicators Mean Min Max Std. Dev. SkewnessKurtosis Goal clarity 2.34 1.00 5.00 0.57 0.43 1.19 Measurability of outputs 4.48 2.00 6.00 0.69 -0.45 0.38 Transformation process 4.95 2.50 7.00 0.93 -0.48 -0.04 Difficulty to assess work 2.58 1.00 5.00 0.78 0.38 0.08 Difficulty to reach agreement on output quality 2.58 1.00 5.00 0.66 0.18 0.12 Knowledge about job performance 3.42 1.00 5.00 1.05 -1.06 1.62 Formative constructs, such as contractibility, can be calculated by using various approaches. For one, it is possible to calculate a formative construct as a summated scale of the underlying formative indicators only. This calculation is achieved by summating the unweighted scores of the formative indicators. The resulting scale includes all of the underlying indicators, which is important because all of the indicators function as necessary conditions for the formative construct. Because the scores on the formative indicators do not need to covary, factor analysing the components of the formative construct is meaningless, as is the Cronbach-type analysis of scale reliability (Speklé & Verbeeten 2008). Because oftentimes no theoretical suggestions exist concerning how the underlying indicators should be weighted, this unweighted approach is justifiable. 34 Because the reflective indicators are all single-item constructs, no factor analyses and/or scale reliability measures are reported.
54 CHAPTER 2. RPE AT THE BUSINESS UNIT MANAGER LEVEL I calculate contractibility not by using an unweighted summated scale but by using a more sophisticated MIMIC model. MIMIC also incorporates reflective indicators to calculate the relative weights of each of the formative indicators when forming the latent construct. As the relative weights of the three causal dimensions (goal clarity, measurability of outputs and knowledge of transformation process) cannot be derived theoretically, one may resort to structural equation techniques, such as MIMIC, to determine the appropriate weights (Bisbe et al. 2007). In the absence of a theoretical basis for the weights of the indicators, MIMIC at least provides an empirical basis for the index. MIMIC estimates the latent formative construct contractibility, as depicted in figure 2.4. The MIMIC model calculates contractibility by using the formative (causal) indicators on the left-hand side of the figure and the reflective (outcome) indicators on the right-hand side of the figure. The numbers on the arrows are standardized regression coefficients. The numbers above the reflective measures (boxes) and the latent construct (contractibility) indicate the amount of variance explained. The model explains 47% of the variance in the latent construct contractibility. Goal Clarity Measurability of Outputs Knowledge of Transformation Process Figure 2.4: Contractibility MIMIC Model .40 Difficulty to Asses Work (reversed) ✬ .47✩ .33 Agreement Contractibility Output Quality (latent) (reversed) ✫ ✪ .17 ✂ ✂ Job Performance ✂ ✂ ✂ ✂ ✂ ✂ ✂✍ .34 ❇ ❇ ❇ ❇ ❇ ❇ ❇ ✂ .33 ❇❇◆ ✂ ✲ ✂ .18 ✂ ✂ ✂ ✂ ✂ ✂✍ .63 .57 ✲ ❇ ❇ ❇ ❇ ❇ ❇ ❇ .41❇ ❇◆
- Page 11 and 12: 2 CHAPTER 1. GENERAL INTRODUCTION I
- Page 13 and 14: 4 CHAPTER 1. GENERAL INTRODUCTION o
- Page 15 and 16: 6 CHAPTER 1. GENERAL INTRODUCTION T
- Page 17 and 18: 8 CHAPTER 1. GENERAL INTRODUCTION F
- Page 19 and 20: 10 CHAPTER 1. GENERAL INTRODUCTION
- Page 22 and 23: Chapter 2 The Use of Relative Perfo
- Page 24 and 25: 2.1. INTRODUCTION 15 is not a promi
- Page 26 and 27: 2.2. THEORETICAL BACKGROUND 17 The
- Page 28 and 29: 2.2. THEORETICAL BACKGROUND 19 Sinc
- Page 30 and 31: 2.2. THEORETICAL BACKGROUND 21 who
- Page 32 and 33: 2.2. THEORETICAL BACKGROUND 23 suff
- Page 34 and 35: 2.3. SAMPLE AND MEASUREMENT 25 2.2.
- Page 36 and 37: 2.3. SAMPLE AND MEASUREMENT 27 2.3.
- Page 38 and 39: 2.3. SAMPLE AND MEASUREMENT 29 can
- Page 40 and 41: 2.3. SAMPLE AND MEASUREMENT 31 Comp
- Page 42 and 43: 2.3. SAMPLE AND MEASUREMENT 33 this
- Page 44 and 45: 2.3. SAMPLE AND MEASUREMENT 35 Emph
- Page 46 and 47: 2.4. ANALYSES 37 2.4 Analyses This
- Page 48 and 49: 2.4. ANALYSES 39 Table 2.8: RPE use
- Page 50 and 51: 2.4. ANALYSES 41 2.4.2 Correlations
- Page 52 and 53: 2.4. ANALYSES 43 Concerning the con
- Page 54 and 55: 2.4. ANALYSES 45 Table 2.13: Result
- Page 56 and 57: 2.4. ANALYSES 47 Table 2.15: Summar
- Page 58 and 59: 2.5. CONCLUSIONS AND DISCUSSION 49
- Page 60 and 61: 2.5. CONCLUSIONS AND DISCUSSION 51
- Page 64 and 65: 2.6. CONTRACTIBILITY MIMIC MODEL (A
- Page 66 and 67: 2.7. ANALYSES FOR FOR-PROFIT BUS (A
- Page 68 and 69: Chapter 3 Does Relative Performance
- Page 70 and 71: 3.1. INTRODUCTION 61 Holmstrom’s
- Page 72 and 73: 3.2. DEVELOPMENT OF THE MODEL 63 3.
- Page 74 and 75: 3.2. DEVELOPMENT OF THE MODEL 65 RP
- Page 76 and 77: 3.3. SAMPLE AND MEASUREMENT 67 3.3
- Page 78 and 79: 3.3. SAMPLE AND MEASUREMENT 69 3.3.
- Page 80 and 81: 3.3. SAMPLE AND MEASUREMENT 71 Tabl
- Page 82 and 83: 3.3. SAMPLE AND MEASUREMENT 73 Tabl
- Page 84 and 85: 3.4. ANALYSES 75 3.4 Analyses This
- Page 86 and 87: 3.4. ANALYSES 77 Table 3.9: Pearson
- Page 88 and 89: 3.4. ANALYSES 79 Table 3.10: Result
- Page 90 and 91: 3.4. ANALYSES 81 Table 3.11: Result
- Page 92 and 93: 3.4. ANALYSES 83 Larcker & Rusticus
- Page 94 and 95: 3.5. CONCLUSIONS AND DISCUSSION 85
- Page 96 and 97: Chapter 4 Does Relative Performance
- Page 98 and 99: 4.1. INTRODUCTION 89 Moreover, chap
- Page 100 and 101: 4.2. DEVELOPMENT OF THE MODEL 91 is
- Page 102 and 103: 4.2. DEVELOPMENT OF THE MODEL 93 Sp
- Page 104 and 105: 4.3. SAMPLE AND MEASUREMENT 95 4.3
- Page 106 and 107: 4.3. SAMPLE AND MEASUREMENT 97 To i
- Page 108 and 109: 4.3. SAMPLE AND MEASUREMENT 99 of R
- Page 110 and 111: 4.3. SAMPLE AND MEASUREMENT 101 Tab
2.6. CONTRACTIBILITY MIMIC MODEL (APPENDIX A) 53<br />
described by a sample of interchangeable indicators (Bisbe et al. 2007:792). With reflective<br />
indicators, one or more indicators are often excluded from the construct. This exclusion<br />
can be the result of a factor analysis and/or scale reliability analysis if a poorly fitting<br />
survey item is left out of the construct to enhance scale reliability. When measuring with<br />
formative indicators, this approach is not recommended because it alters the meaning of<br />
the construct.<br />
The second group of constructs consists of reflective indicators. Whereas formative constructs<br />
cause the latent construct, the reflective measures are its result. The reflective<br />
measures in this model are the following: difficulty to assess work (Q25, reversed coding),<br />
difficulty to reach agreement on output quality (Q26, reversed coding), and knowledge<br />
about the business unit manager’s job performance (Q27). In this case, the reflective indicators<br />
are all single-item constructs 34 . Table 2.16 presents the descriptive statistics for<br />
the formative and reflective contractibility indicators.<br />
Table 2.16: Descriptive Statistics for Contractibility Indicators<br />
Mean Min Max<br />
Std.<br />
Dev.<br />
SkewnessKurtosis<br />
Goal clarity 2.34 1.00 5.00 0.57 0.43 1.19<br />
Measurability of outputs 4.48 2.00 6.00 0.69 -0.45 0.38<br />
Transformation process 4.95 2.50 7.00 0.93 -0.48 -0.04<br />
Difficulty to assess work 2.58 1.00 5.00 0.78 0.38 0.08<br />
Difficulty to reach agreement on output<br />
quality<br />
2.58 1.00 5.00 0.66 0.18 0.12<br />
Knowledge about job performance 3.42 1.00 5.00 1.05 -1.06 1.62<br />
Formative constructs, such as contractibility, can be calculated by using various approaches.<br />
For one, it is possible to calculate a formative construct as a summated scale of the underlying<br />
formative indicators only. This calculation is achieved by summating the unweighted<br />
scores of the formative indicators. The resulting scale includes all of the underlying indicators,<br />
which is important because all of the indicators function as necessary conditions<br />
for the formative construct. Because the scores on the formative indicators do not need<br />
to covary, factor analysing the components of the formative construct is meaningless, as is<br />
the Cronbach-type analysis of scale reliability (Speklé & Verbeeten 2008). Because oftentimes<br />
no theoretical suggestions exist concerning how the underlying indicators should be<br />
weighted, this unweighted approach is justifiable.<br />
34 Because the reflective indicators are all single-item constructs, no factor analyses and/or scale reliability<br />
measures are reported.