SCALE DEVELOPMENT OF ORGANIZATIONAL ATTRIBUTES IN CHINESE SECURITIES COMPANIES USING A PLS-SEM APPROACH
DOI:
https://doi.org/10.55197/qjssh.v7i2.1129Keywords:
organizational attributes, scale development and validation, PLS-SEM, Chinese securities companies, organizational effectiveness, formative measurement modelAbstract
Organizational attributes play a critical role in shaping effectiveness in financial institutions, yet existing measurement instruments are largely developed in Western contexts and insufficiently capture the institutional realities of Chinas securities industry. This study develops and validates a context-specific Organizational Attributes Scale for Chinese Securities Companies (OAS-CSC). Drawing on organizational theory and the Competing Values Framework, organizational attributes are conceptualized as a second-order formative construct composed of five reflective dimensions: organizational culture, leadership effectiveness, innovation and adaptability, employee engagement, and regulatory compliance and ethics. Survey data from 191 employees across nine securities firms in Zhejiang Province were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results support the proposed reflective-formative specification, demonstrating acceptable collinearity, meaningful indicator relevance, and strong criterion (redundancy) validity against a global organizational effectiveness measure. No post-estimation scale refinement was required, as all dimensions were theoretically indispensable. The OAS-CSC provides a validated diagnostic instrument for organizational assessment and advances measurement research in highly regulated financial contexts.
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Copyright (c) 2026 FAN XU, NARAYANAN SIVACHANDRAN, JAMALUDDIN ZAHARUZAMAN
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