Moderating effect - original or standardized indicators?

Frequently Asked Questions about the SmartPLS software. Please refer to this section first, if you have problems with the software.
Post Reply
guestpek
PLS Junior User
Posts: 1
Joined: Sun Jun 14, 2020 6:57 am
Real name and title: Jack Shephard

Moderating effect - original or standardized indicators?

Post by guestpek »

Hi to everyone,
I am using SmartPLS 2 and I want to performe moderating effect.

When I create moderating effect there are 3 option for interaction effect term generation:
- use orginal indicator values for moltiplication
- standadize indicator values before moltiplication
- mean-center indicator values before moltiplication
What is the real difference between them?

In my model my moderator variable and my predictor variable are on different scale, and when I run pls algorithm I use data metric with mean 0 and variance 1.

So, which of the 3 options for interaction should I choose?
jmbecker
SmartPLS Developer
Posts: 1163
Joined: Tue Mar 28, 2006 11:09 am
Real name and title: Dr. Jan-Michael Becker

Re: Moderating effect - original or standardized indicators?

Post by jmbecker »

Dr. Jan-Michael Becker, University of Cologne, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
GoogleScholar: http://scholar.google.de/citations?user ... AAAJ&hl=de
Post Reply