Prepared by:

Assoc. Prof. Dr Bahaman Abu Samah

Department of Professional Development and Continuing Education
Faculty of Educational Studies
Universiti Putra Malaysia
Serdang
A moderator variable M is a variable that alters the
strength of the causal relationship between independent
and dependent variable. Example, psychotherapy may
reduce depression more for men than for women, and so
we would say that gender (M) moderates the causal
effect of psychotherapy (X) on depression (Y).
(David A Kenny)
Moderation effect is depicted as in the
following structural model, where:
X Independent variable
Y Dependent Variable
M Moderator M

X Y
– Generally moderator is a categorical variable. However,
moderator can also be continuous variable. For continuous
moderator, refer to David A. Kenny*
– In SEM, test of moderator is done through Multi Group
Analysis
– The analysis involves splitting the data
into groups based on the moderator.
Example:
GENDER – Male and Female groups
* http://davidakenny.net/cm/moderation.htm
Multi Group Analysis can test moderation effects of the
moderator on:

• The overall model

1
• The individual paths
2
1

4
1 Draw path diagram

2 Create groups
3 Select data file, grouping variable and value
4 Create models
5 Run analysis
6 Moderation test on overall model
7 Moderation test on individual paths
 
1. Click Analyze | Manage Groups
2. At the Manage Groups dialog
box, type MALE in the Group
Name box. Click NEW button
3. Type Female for the second 
group in the Group Name box.
Click CLOSE button
4. AMOS creates two groups  
– In this exercise use the following data set:
SEM Workshop Data.sav
– In this step, (for each group) you will perform three tasks
1. Select data file
2. Select grouping variable (Gender)
3. Select group value
1 Male
2 Female
Select data file 3 2

1. Click button to select data

file. This dialog box is displayed
2. In the dialog box, Click Male group
3. Click File Name button
4. Open the folder that locates the
data file. Double-click the data file
4
Note:
Data file is entered for Male group
Select Gender as the grouping 1
variable
1. In the dialog box, click the
‘Grouping Variable’ button.
Another dialog box is displayed
2. Click on Gender and click OK
Note:
Gender is entered into variable 2

list
Select 1 as the grouping value
for Male 1

1. In the dialog box, click the

‘Grouping Value’ button.
Another dialog box is
displayed
2. Click on ‘1’ and click OK
Note:
2
‘1’ is entered into value
list
Please follow the earlier steps to:
1. Select the Data set. Use the same data set as for the
Male group
2. Select the Grouping Variable, and
3. Select the Grouping Value.
Choose ‘2’ for the Female group
Note:
Number of cases for each group is
displayed. Once done, click OK as
displayed in the dialog box 
1. Click Analyze | Multiple Group Analysis or
click button to create models.
2. AMOS displays the following reminder.

Click OK
3. AMOS displays the next model options.
Click OK


– AMOS creates the following six (6) models
– However, we are interested on TWO
models, namely:
1. Unconstrained
2. Measurement residuals
– Unconstrained is the Variant-Group model
which assumes that models for male and
female are DIFFERENT.
Male ≠ Female
– Measurement Residuals is the Invariant-
Group model which assumes models for
male and female are NO DIFFERENCE.
Male = Female
1. Set the following options in the
Analysis Properties
2. Click button to run the
analysis
Note:
AMOS automatically assigned labels
to all paths for the two groups
AMOS automatically assigns label to
each paths for the two groups:

Paths (MALE) Paths (FEMALE)

b1_1 O → S b1_2 O → S
b2_1 L → S b2_2 L → S
b3_1 L → O b3_2 L → O
b4_1 TC → O b4_2 TC → O
b5_1 UC → O b5_2 UC → O
b6_1 IF → O b6_2 IF → O
b7_1 TC → S b7_2 TC → S
b8_1 UC → S b8_2 UC → S
b9_1 IF → S b9_2 IF → S
– The first step is to test the moderation effect on the overall model. i.e.
to establish that there is moderation effect of the moderator variable
on the overall model
– This effect can be established by comparing the Unconstrained
(Variant-Group) against Measurement Residuals (Invariant-Group)
models
– If the Unconstrained model is better than Measurement Residuals
model, then we can conclude that there is moderation effect of
GENDER on the overall model Decision Criteria:
Unconstraint > Measurement Residuals
→ Presence of Moderation Effect
– Click to open the View Text output
– Click on the Model Fit and compare the χ2 (CMIN), df and p
between Unconstrained and Measurement Residuals
– Both the models are significant (p < .05)
However, Unconstrained is better (χ2 is smaller) than
Measurement
Residuals model
– Proceed to test
significance of the χ2
difference
 χ2
– To test for the significance, click Model Comparison and focus on
the “Assuming model Unconstrained to be correct”
– Results:
∆ χ2 = 123.091 (1,018.021- 894.929); df = 61 (491- 430); p = .000
Since the difference is significant (p < α)
– Conclusion:
∴ There is some form of
moderation effect of
GENDER on the overall
model
– Once you have established the presence of
moderation effects in the overall structural model,
proceed to test moderation effect on the individual
paths
– Two decision criteria
1. Criteria 1 (Hair, 2010)
2. Criteria 2 (Robert Ho, 2006)
Criteria 1 (Hair, 2010)
The path is moderated by Moderator if:
– Beta for Group 1 is significant while beta for Group 2
is non-significant
– Beta for BOTH groups are significant. However one is
positive while the other negative

Criteria 2 (Robert Ho, 2006)

Check for the significance of CR for difference:
– Significant: CR > 1.96
– Non-significant: CR < 1.96
– Refer to the Estimates from Text
output to make decision
– Click on the “Pairwise Parameter Comparison” in the Text
Output
– Use the Critical Ratios for Differences (Unconstrained)
matrix to compare specific path
between the groups
– Since this matrix is big, it would
be more practical to copy this
matrix into Excel for easier
identification of pairwise path
comparison
Decision Criteria:
The path is moderated by Moderator if:
● Beta for Group 1 is significant while beta for
Group 2 is non-significant
● Beta for BOTH groups are significant. However
one is positive while the other negative
You need to report
these std. regression
weights and sig-value
for the two groups
- Male
- Female
Outcome → Sustainability
b p
Male .310 .000
Female .109 .132

Gender
→ Moderator
Leadership → Sustainability
b p
Male .326 .000
Female .469 .000

Gender
→ Not a Moderator
Telecenter → Sustainability
b p
Male -.005 .959
Female .076 .506

Gender
→ NOT Moderator
Understanding Community → Sustainability
b p
Male .294 .003
Female .362 .000

Gender
→ NOT Moderator
Individual Factor → Sustainability
b p
Male .252 .016
Female -.083 .498

Gender
→ Moderator
Decision Criteria:
The path is moderated if:
CR > 1.96
Outcome → Sustainability Decision Criteria:
The path is moderated by Moderator if:
CR > 1.96
CR for difference = -1.939
Gender
→ NOT Moderator

Excel worksheet
Leadership → Sustainability Decision Criteria:
The path is moderated by Moderator if:
CR > 1.96
CR for difference = 1.048
Gender
→ NOT Moderator

Excel worksheet
TeleCenter → Sustainability Decision Criteria:
The path is moderated by Moderator if:
CR > 1.96
CR for difference = .535
Gender
→ NOT Moderator

Excel worksheet
Understanding Community → Sustainability
Decision Criteria:
CR for difference = .465 The path is moderated by Moderator if:
CR > 1.96
Gender
→ NOT Moderator

Excel worksheet
Ind. Factor → Sustainability Decision Criteria:
The path is moderated by Moderator if:
CR > 1.96
CR for difference = -2.083
Gender
→ Moderator

Excel worksheet