Doubts in Interaction analysis

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umaganesh
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Doubts in Interaction analysis

Post by umaganesh »

Hi all, In my interaction analysis in smart pls, the beta value of the interaction term is negative (should be positive as per the model assumption), though the beta values of the moderator and the independent variable are positive. The t-value for all the 3 variables are significant and the r-squared value of the dependent variable also increases due to the moderating effect. Should we consider the negative beta while interpreting moderating effect or can we stick with change in r-squared value and ignore beta value? Please clarify.
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Hengkov
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Re: Doubts in Interaction analysis

Post by Hengkov »

Hi,

You have collinearity problem, check it.

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umaganesh
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Re: Doubts in Interaction analysis

Post by umaganesh »

Thanks. Will do and get back.
umaganesh
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Re: Doubts in Interaction analysis

Post by umaganesh »

Hi
I did check for collinearity problems using SPSS and the VIF values for all my variables are above 1 and less than 5.
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Hengkov
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Re: Doubts in Interaction analysis

Post by Hengkov »

Hi,

If no have collinearity,this is supression effect. So, the sign change after you include moderation effect. For clear this issue may be you can asses Sympson Paradox Ratio.

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umaganesh
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Re: Doubts in Interaction analysis

Post by umaganesh »

will check out and get back. Thanks
soralroy
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Re: Doubts in Interaction analysis

Post by soralroy »

i also think something is wrong with collinearity
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