Moderating Effects with formative indicators

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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Catharina
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Moderating Effects with formative indicators

Post by Catharina »

Hi ,

the two-stage PLS approach for the estimation of moderating effects when formative constructs are involved suggests:

1) Run the main effect PLS path model in order to obtain estimates for the latent variable scores

=> Who do I calculate the latent variable scores (LVS)?

2) Build the interaction term as the element-wise product of the LVS

=> How do I conduct an element-wise multiplication?

Thanks a lot for your help!!

Catharina
christian.nitzl
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Post by christian.nitzl »

Hey Catharina,

ad 1) You can find the latent variable scores after you have run the PLS algorithm in the standard report > PLS > Calculation Results > Latent Variable Scores.

ad 2) Then you have to put your variables (predictor latent variable and moderator latent variable) in an excel sheet. Thereafter you can produce a new variable by multiplication of this two variables case wise. This is your new variable which you can use for the further calculation.

I hope that helps!

Best regards,

Christian
Catharina
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Post by Catharina »

Hi Christian,

thanks a lot for your reply!

Catharina
alexwong
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Post by alexwong »

Well.
tharwa najar
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Post by tharwa najar »

HI
please I have the same problem that you are facing; moderation with formative constructs. I did the first step of the main effect model. I have the interaction product of LVS of the two variables but I don't know what to do to put it as a latent variable in the model. I mean hwo to proceed to export the data from excel (LVS product) to smart pls model (as a direct latent variable to the dependent variable). Also I have four moderator reflective LV with two second order factors and one formative predictor composed of two dimensions.
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