Testing Equivalence in the Structure, Means, and Variances of Higher-Order Constructs With Structural Equation Modeling

Abstract

Recent developments in the literature provide us with a better understanding of the importance of and procedures for testing measurement equivalence in organizational research. However, whereas many constructs in organizational research are multidimensional and multifaceted, procedures for testing the measurement equivalence of higher-order constructs are not commonly known. This study first discusses the importance of examining the measurement equivalence of higher-order constructs from a theoretical perspective, and then demonstrates that importance with a small-scale simulation. Finally, the procedures for testing various forms of measurement equivalence with structural equation modeling for both firstand second-order constructs are clarified and illustrated with a numerical example.