Interpretation of moderating effect

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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Leonie
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Joined: Tue Mar 30, 2021 8:59 pm
Real name and title: Leonie

Interpretation of moderating effect

Post by Leonie »

Hi,
how do I interprete a dummy-coded moderator variable when the exogenous variable is also dummy-coded?

I used the two-stage-approach to integrate the moderator and the values are standardized.

E.g., simple effect is -0,157, effect of interaction term is -0,173.
The simple effect is not significant but the interaction term is significant. So there is a moderating effect which I can interpret, right?
So, if the dummy-coded moderator is 1, the effect of the moderator is negative. Is that the correct interpretation?

And what does the simple effect say?
So, I read that with standardized values the simple effect is the value of the effect when the moderator takes the mean value? But as it is a dummy-coded moderator, there is no real mean value to interpret, right?

Could someone help me out?

Thank you,
Leonie
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