How to test moderation of multi-answer categorical variable

Questions about the implementation and application of the PLS-SEM method, that are not related to the usage of the SmartPLS software.
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GDGOID
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How to test moderation of multi-answer categorical variable

Post by GDGOID »

Hello there,

I am still relatively new to SmartPLS and have a quick question about moderators.

I want to show the moderating effects of seniority and length of service moderators in my model.
Likert scale measures were not used in the questionnaire. Instead, respondents selected one option from categories such as: 1 = non-management; 2 = middle management; 3 = senior management in the case of seniority. For length of service, categories included: 1 = 1 to 5 years; 2 = 6 to 10 years; 3 = 11 to 15 Years, etc.

My question: Is it possible to treat these variables as continuous moderator variables and simply run the moderating effect function? If so, could you give guidance or a brief example of how this can be done?

Any advice would be warmly welcomed. Thank you in advance!
MrcJnk
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Re: How to test moderation of multi-answer categorical varia

Post by MrcJnk »

I would not recommend using interaction terms for categorical variables as in your case. Instead, you could use MGA to investigate categorical moderator variables. Moderation analysis with interaction terms from my point of view only makes sense for binary variables or ordinal scaled variables from at least 5 point Likert-scales.

Best regards
MJ
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GDGOID
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Re: How to test moderation of multi-answer categorical varia

Post by GDGOID »

Thank you, MJ!
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Hengkov
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Re: How to test moderation of multi-answer categorical varia

Post by Hengkov »

Use the available approaches for indicators of categories such as OPLSc, Quantile etc.
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