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Constructs in Reverse logistics

Constructs in Reverse logistics

Read the attached articles for the forum discussion “Characteristics of the research on reverse logistics”.
What constructs does the research of Fugate, Mentzer & Stank (2008) find to be formative or reflective?
You should also do some research into what a construct is and how it applies to the question above by
looking this topic up in the library.
What does this mean for the field of logistics management? Do you agree or disagree?

Constructs in Reverse logistics

Reverse logistics is a component of the supply chain that plays a vital role in
ensuring the effectiveness and efficiency of business performance. Thus, for a business
organization to improve logistics and organizational performance, it is vital to establish logistic
effectiveness, efficiency, and differentiation. Fugate, Mentzer & Stank (2010) found out that a
business organization can implement efficiency, effectiveness and differentiation strategy
simultaneously as well as executing one after the other. Execution of logistic strategies force
manager to innovate and establish tactics and strategies that can overcome application or trade-
offs between efficiency, effectiveness concurrently, and differentiation.

Fugate, Mentzer & Stank (2010) emphasized the importance of specifying
constructs as reflective or formative. The authors concluded that constructs are essential in
logistics research due to the inclusion of more complex behavioral variables as well as the use of
both first-order and second-order latent variables. Besides, they recommended rigorous criteria
should be followed during construct development as well as during adoption of the existing
construct in future research. This is because misspecification of a construct as formative or
reflective has significant distortion of empirical results. Researchers in logistics should ensure
effective conditions to determine when to apply covariance-based versus variance-based
approaches to analyze formative constructs. Logistics lack the framework and theory regarding
the nature of relationships among dimensions, constructs and their indicators, whether reflective

or formative models to be adopted. Logistics performance construct predicts validity and its
related theoretical consequences as well as strategic implications within an organization.
Reflective construct causality direction is from constructs to indicators, while in a
formative construct causality is from indicators. Indicators of reflective construct manifest from
the construct unlike in a formative construct where they are the characteristics of the construct.
Indicators in the reflective construct are interchangeable and are not necessarily interchangeable
in a formative construct. Besides, dropping an indicator does not alter the conceptual domain of
the reflective construct, which is the opposite of a formative construct. Despite indicators in
reflective construct co-varying with each other, in a formative construct, they may co-vary
negatively, positively and be neutral with each other.

I agree with the finding of constructs by Fugate, Mentzer & Stank (2010) because
they will enhance the performance of business logistics management. I also agree because
constructs will provide the relationships between logistics and business performance and how
logistics increase effectiveness, efficiency, and differentiation of variables. This is because
managers will show how logistics reduce expenses, cash and inventory requirements as well as
increased availability of inventory, sales, on-time and damage free deliveries, and timely



Fugate, B. S., Mentzer, J. T., & Stank, T. P. (2010). Logistics performance: efficiency,
effectiveness, and differentiation. Journal of business logistics, 31(1), 43-62.

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