In PLS, is it possible to measure the moderationg effect of a continuos observed variable on a latent variable?
Thanks.
A.
PLS Latent variables interactions
- joerghenseler
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Re: Moderating Effects
Thanks very much ...
joerghenseler wrote:Yes.
I recommend reading the article written by Chin/Marcolin/Newsted (2003).
- ghozali
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- Real name and title: Prof. Imam Ghozali, Ph.D
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latent Variable interaction
Yes, you can run interaction latent variable using SmartPLS. The interaction latent variable is product of predictor indicators and moderator indicator. Those two indicator should be centered or standardized (you can set the data metric to mean=0 and variance=1 or choose centroid). You can compare the result between the main effect only and included the moderating variable. If the R-square change is higher with the moderating variable then the interaction effect is fine
Faculty of Economics, Diponegoro University
Jl. Erlangga Tengah 17 Semarang, Indonesia
ghozali_imam@yahoo.com
Jl. Erlangga Tengah 17 Semarang, Indonesia
ghozali_imam@yahoo.com