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Moderating effect - original or standardized indicators?

Posted: Sun Jun 14, 2020 7:09 am
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?

Re: Moderating effect - original or standardized indicators?

Posted: Tue Feb 23, 2021 8:43 am
by jmbecker