In testing moderating effect of a moderating variable on relationship between IVs and DV (all the latent variables are with reflective indicators; and sample size over 200) using SmartPLS 3, firstly it obtained a significant moderating effect by using the product indicator approach. However, the test again using the two stage approach found no moderating effect.
As referred by Henseler & Chin (2010), the two-stage approach has the higher statistic power, i.e. it is the most likely approach to detect a significant interaction. But the results here showed the opposite!!
I would appreciate any suggestions regarding this.
Dear Saeed Awadh Bin-Nashwan
Maybe this help you:
Article Testing moderating effects in PLS path models with composite variables
Regards
Examine your variables. If the moderator is metric or continuous in nature then you have to use product indicator technique. If it is non-metric then use multigroup analysis
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