Abstract
The purpose of this paper is to give an outline of the issues of measurement model misspecification and to introduce some examples of the use of formative indicators in management accounting research. So far, most constructs are measured as reflective and few are measured as formative even though they should be. Since the misspecification of measurement model can cause many issues, it's significant to choose proper measurement model in order to conduct high-quality research. Recently, an increasing number of studies have realized the distinction between reflective and formative measurement models. In this paper, we introduce 4 prior studies, and show that various ways are used to specify the measurement model in these studies.
