Currently, I am writing my thesis on internationalization and TMT faultlines. Faultlines are hypothetical lines which divide a TMT into subgroups based on the alignment of multiple attributes (e.g., age, gender).
My baseline hypothesis is as follows:
H1. Family firms have a lower degree of internationalization than non-family firms.
However, I now want to add my two moderation variables: identity-based faultlines (IBF) and knowledge-based faultlines (KBF).
1. If I include the IBF then my baseline hypothesis becomes even worse so: the degree of internationalization for family firms will become even lower. (i.e., less internationalization)
2. If I include the KBF then my baseline hypothesis becomes less worse so: the degree of internationalization for family firms will become higher (i.e. more internationalization).
Now I am not sure if my moderators are positive or negative. Does IDF negatively moderate the relationship described above? Does KBF positively moderate the relationship described above?
Or is it the other way around?
Hopefully, you can provide me with an answer.
Test the moderation effect by testing the regression coefficient of Interaction.
Moderation effects are difficult to interpret without a graph. It helps to see what is the effect of the independent value at different values of the moderator.
If the independent variable is categorical, we measure its effect through mean differences, and those differences are easiest to see with plots of the means.
The issue is to know with which statistic I am performing the probabilistic or non-probabilistic contrast, the level of research is correlational or explanatory if it is explanatory it can be with regression analysis, the opposite with antilogarithmic and if correlational with Pearson and if np with rho
Hi Julie,
Attached and at the bottom is a useful link, with an excellent explanation regarding easy interpretation of the moderation effect, please take time to have a look at it, all the best.
Best wishes,
Sofiane
https://www.theanalysisfactor.com/3-tips-interpreting-moderation/#:~:text=Moderation%20effects%20are%20difficult%20to,with%20plots%20of%20the%20means.
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