Statistical Techniques for Making Cross-Cultural Comparisons on Organizational Instruments

Statistical Techniques for Making Cross-Cultural Comparisons on Organizational Instruments

Tanesia R. Beverly (Law School Admission Council, USA)
DOI: 10.4018/978-1-7998-7665-6.ch005
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Abstract

Researchers tend to evaluate psychological instruments in terms of reliability (internal consistency) and construct validity (exploratory factor analysis and confirmatory factor analysis). In many instances, these instruments are used for cross-cultural comparisons such as gender and race—however, many of these studies do not provide evidence of measurement invariance or measurement equivalence. Measurement equivalence is a statistical property of an instrument that indicates that participants interpret and respond to the items similarly or that the same latent construct is being measured across observed groups of people. Partial measurement equivalence is a necessary condition for comparing latent mean differences across cultures. This area of construct validity is often neglected in the literature; therefore, this chapter aims to introduce the concept of measurement invariance. Additionally, it highlights the necessity of testing for measurement invariance when making cross-cultural comparisons on organizational leadership instruments.
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Background

The next section details the statistical underpinnings of the measurement equivalence procedure. It starts by introducing the foundations of the model and then details the procedure for testing for measurement equivalence.

Measurement Model

The multiple-group confirmatory factor analysis (MGCFA) was introduced to test measurement equivalence across observable groups (Jöreskog, 1971). Jöreskog's (1971) hierarchical tests for measurement equivalence excluded the mean structure or tests for equality of intercepts and latent means. Sorböm (1974) extended this technique to incorporate means and covariance structures (MACS) or compare intercepts and latent means across groups. In the MACS, equality constraints for factor loadings and intercepts across groups are imposed to detect latent mean differences (Sorböm, 1974).

MGCFA allows researchers to test a priori hypotheses about model parameters across groups. The confirmatory factor analysis model (CFA) provides a framework for evaluating equality constraints across groups. The CFA is defined as:

978-1-7998-7665-6.ch005.m01
(1) where Xg is the vector of observed scores, 𝜏g is the vector of intercepts or observed means on items, Λg is a matrix of factor loadings or the regression of the observed variables on the latent factors ξ, and δ is the vector of measurement errors for each group g. The mean and variance-covariance matrices of the observed are defined as:
978-1-7998-7665-6.ch005.m02
(2)
978-1-7998-7665-6.ch005.m03
(3) where E(Xg) is a vector of observed means, Σg is a matrix of observed variances and covariances, 𝜅g is a vector of factor means, Φg is a matrix of factor variances and covariances, and Θg is a diagonal matrix of unique variances.

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