Hi, there
In terms of the Moderating Hypothesis, We can have X as independent construct and Y as dependent construct. Z is the Moderating construct. X has reflective indicators X1X2X3, Y has Y1Y2Y3. Z has Z1, Z2, Z3. And we have Z1*X1, Z1*X2, and 7 others for the Interaction Effects’ construct.
But when I draw the three construct together, how I can know the Moderating effect is strong not weak? For example, X> Y is 0.25; Z> Y is 0.04; X*Z> Y is 0.46. So can we say the negative relationship between Z and Y means Moderating Effect is strong (or weak)? And how to explain the positive 0.46 between the Interaction Effects (X*Z) and the dependent construct (Y)?
Thank you very much for your advice and time.
Also, what is the concept of ‘loadings’ and ‘weights’? Both SmartPLS 2.0 and AMOS 5 manual do not contain the two terms. Does Alpha means loadings and a small '1' in AMOS model means weights?
Moderating Effects and two concept questions
Moderating Effects and two concept questions
Kehan Xu, Ph.D. student
Lancaster University Management School, UK
Lancaster University Management School, UK

 PLS Expert User
 Posts: 54
 Joined: Wed Oct 19, 2005 5:53 pm
 Real name and title:
Kehan,
provided your path coefficients (X>Y and Z*X>Y) are both significant (Z>Y will likely not be), your results indicate a strong moderating effect of Z on the X>Y relationship. Chin (1998) provides the following interpretation of the Z*X>Y path coefficient:
0.25 is the X>Y path coefficient at Z=0
0.25+0.46=0.71 is the X>Y path coefficient at Z=1
Hope this helps.
Stefan
provided your path coefficients (X>Y and Z*X>Y) are both significant (Z>Y will likely not be), your results indicate a strong moderating effect of Z on the X>Y relationship. Chin (1998) provides the following interpretation of the Z*X>Y path coefficient:
0.25 is the X>Y path coefficient at Z=0
0.25+0.46=0.71 is the X>Y path coefficient at Z=1
Hope this helps.
Stefan
'Goodness of Fit'
Dear Stefan,
Thank you very much for your kind help and advice.
Do we have measurement like 'Goodness of Fit' from SmartPLS output? I may need to compare the output of SmartPLS with AMOS for the same model.
Thank you very much for your kind help and advice.
Do we have measurement like 'Goodness of Fit' from SmartPLS output? I may need to compare the output of SmartPLS with AMOS for the same model.
Kehan Xu, Ph.D. student
Lancaster University Management School, UK
Lancaster University Management School, UK

 PLS Expert User
 Posts: 54
 Joined: Wed Oct 19, 2005 5:53 pm
 Real name and title:
There really are no "real" goodnessoffit statistics in PLS.
However, squared multiple correlations (R2) of your dependent variables allow you check overall model fit. For example, Chin(1998) calls an R2 of ~.66 substantial, ~.35 moderate and ~.17 weak model fit.
Beyond that you can check the predictive validity of your model using the StoneGeisser Q2>0 criterium. Unfortunately, SmartPLS in its current release does not provide for a blindfolding procedure and thus cannot calculate the Q2 statistic. I guess, however, that the next release is supposed to address this shortcoming.
Best,
Stefan
However, squared multiple correlations (R2) of your dependent variables allow you check overall model fit. For example, Chin(1998) calls an R2 of ~.66 substantial, ~.35 moderate and ~.17 weak model fit.
Beyond that you can check the predictive validity of your model using the StoneGeisser Q2>0 criterium. Unfortunately, SmartPLS in its current release does not provide for a blindfolding procedure and thus cannot calculate the Q2 statistic. I guess, however, that the next release is supposed to address this shortcoming.
Best,
Stefan