Moderating effect - original or standardized indicators?

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guestpek
PLS Junior User
Posts: 1
Joined: Sun Jun 14, 2020 6:57 am
Real name and title: Jack Shephard

Moderating effect - original or standardized indicators?

Post by guestpek »

Hi to everyone,
I am using SmartPLS 2 and I want to performe moderating effect.

When I create moderating effect there are 3 option for interaction effect term generation:
- use orginal indicator values for moltiplication
- standadize indicator values before moltiplication
- mean-center indicator values before moltiplication
What is the real difference between them?

In my model my moderator variable and my predictor variable are on different scale, and when I run pls algorithm I use data metric with mean 0 and variance 1.

So, which of the 3 options for interaction should I choose?
jmbecker
SmartPLS Developer
Posts: 1281
Joined: Tue Mar 28, 2006 11:09 am
Real name and title: Dr. Jan-Michael Becker

Re: Moderating effect - original or standardized indicators?

Post by jmbecker »

Dr. Jan-Michael Becker, BI Norwegian Business School, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
GoogleScholar: http://scholar.google.de/citations?user ... AAAJ&hl=de
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