formative constructs as dependent variables

[adfarashah]

I got the following statement from a reviewer of my article regarding use of a formative constructs of "manager performance" as dependent variable in my model. what do you suggest in response?

I have a problem with using formative constructs as dependent variables. By definition a formative construct is determined by the formative indicators. How can another construct (such as self-efficacy) then influence this formative construct that is determined by its indicators? See Cadogan/Lee (2013). Improper use of endogenous formative variables. Journal of Business Research, 66(2): 233-241. I suggest testing the influence of self-efficacy on the performance indicators separately. I know that many previous studies have used formative constructs as endogenous constructs, but this is problematic.

[jmbecker]

Methodology-wise there should be no problem of using formative constructs in endogenous position in PLS. This is in contrast to CB-SEM where it is indeed a problem.
There is a point-counterpoint on this issue in ISR, where a large author team including me argues that it is possible to model formative constructs in ednogenous positions.
Rigdon, Edward E., Jan-Michael Becker, Arun Rai, Christian M. Ringle, Adamantios Diamantopoulos, Elena Karahanna, Detmar Straub, and Theo K. Dijkstra (2014): Research Commentary—Conflating Antecedents and Formative Indicators: A Comment on Aguirre-Urreta and Marakas, Information Systems Research, Vol. 25, Issue 4, 780-784. http://dx.doi.org/10.1287/isre.2014.0543

[Hengkov]

see viewtopic.php?f=5&t=15110