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Interactoin Effects and Moderators

Partial Least Squares Product Indicator Approach

The Product indicator approach, proposed by Chin(1996), was support in the VisualPLS. The predictor (X) and moderator (Z) indicators are used to create product indicators by creating all possible products from the two sets of indicators. These product terms are used to reflect the latent interaction variable. For example, if the predictor (X) has three indicators and the moderator variable (Y) has 2 indicators, as graphically depicted below, we would have six measures for representing the construct of interaction effect (X*Z).

Step to Model Interaction Effects with VisualPLS

Step 1: Generate Product Terms for Interaction Effects

Step 2: Create a Construct for Interaction Effect

Step 3: Assign product Indicators to Constructs

How to generate Product Terms for Interaction Effects

Click the Button, then select [New product terms (for interaction)]

If you want to generate product terms using existing construct, then select [Constructs] button, else select [Indicators] button

Press [Constructs] Button

the [Generate Product Terms from Constructs] window appear. The user then select predictor construct and moderator variable to generate product terms. Be sure to assign 2-character Alias for predictor and moderator variable to generate indicator name for products terms.

Press [OK] button, then these product terms will show up in the manifest variable list box.

Press [Indicators] Button

the [Generate Product Terms from Individiau items] window appear. The user then select predictor indicator and moderator indicator to generate a product term, one at a time. Be sure to assign 3-character Alias for predictor and moderator variable to generate indicator name for products terms.

Change/Delete Product Terms

Then generated product term can be deleted or changed. The Filter box will help user to list indicators related to a specific construct to ease the management of multiple product indicators.