RESEARCH STATISTICS
Analysing
Moderation model
DR CHUA YAN PIAW (UM)
Prof Dr Chua Yan Piaw
University of Malaya
Moderator variable
A qualitative (e.g., gender, race, group) or
quantitative (e.g., level of reward) variable that
affects the strength of the relation between an
independent (or predictor variable) and a
dependent variable.
Baron & Kenny (1986)
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Moderating effect measures the change of the
relationship between IV-DV when the moderator
increases or decreases one unit of standard deviation.
Moderating effect does not create, increase or
decrease the relationship, but is indicate the
strengths of the relationship between IV-DV at
different levels/categories of the moderator.
DR CHUA YAN PIAW (UM)
Gender is a moderator because at difference
categories of Gender (Male and female), the
relationship between Peer influence and happiness
is different.
Example: The effects of a moderator
on the relationship between an IV
and 2 DVs
DR CHUA YAN PIAW (UM)
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Example: The effects of two
moderators on different paths
DR CHUA YAN PIAW (UM)
Why studying moderating effect?
DR CHUA YAN PIAW (UM)
Kaye & Wright (2001) - In real situation, attitude
and personality exist together, so without studying
the moderating effect of attitude, one may think
that the effects of personality on performance are
similar at any levels of attitude.
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Two types of moderators:
1. Continuous-scale moderator
(interval/ordinal scale data –
Metric/ordinal)
(examples: Satisfaction level, creativity
score)
Analysis – Multiplication method
2. Categorical-scale moderator
DR CHUA YAN PIAW (UM)
(nominal scale data – Categorical/binary)
(examples: Gender, race)
Analysis – Multigroup analysis
Multiplication method
There are three paths in the moderating
figure:
1. IV DV
2. Moderator DV
Moderating effect:
3. IV*Moderator DV
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Moderating effect (3) - The interaction effect
of the IV*Moderator on the DV (p < 0.05).
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Two-stage approach
Stage 1
Analysing the main effect of IV-DV
Main effect – the effect of IV on DV when the path
is moderated by the moderator.
Two-stage approach
Stage 2
Analysing the simple effect and
moderating effect of IV-DV
Simple effect –
the effect of IV on
DV when the
effect of
moderator = 0
(without the
moderator).
Moderating effect - the interaction effect caused
by the moderator when the moderator increases
or decreases 1 unit SD.
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Two-stage approach
Stage 2 – Simple slope graph
Moderating effect - the interaction effect caused
by the moderator when the moderator increases
or decreases 1 unit SD.
Parallel graphs (at + and – 1 SD), interaction effect
or moderating effect of the moderator does not
occur.
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Two-stage approach
Stage 2 – Simple slope graph
Moderating effect - the interaction effect caused
by the moderator when the moderator increases
or decreases 1 unit SD.
The graphs are crossing each other (at + and – 1
SD) with a large gap, interaction effect exists,
moderating effect of the moderator occurs.
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Example7a:
A study is conducted to examine whether
Education level of postgraduates
moderates the effect of Peer influence on
online behavior.
Conceptual framework
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Research objectives:
to examine whether Education moderates the effects
of Peer influence on online behavior.
Research questions:
What are the moderating effects of Education on the
relationships between Peer influence and online
behavior.
Research hypotheses:
Education moderates the relationships between:
(1) Peer influence and online behavior.
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Two-stage approach
Stage 1
Analysing the main effect of IV-DV
Result:
With the moderator,
the main effect is
0.834, p < 0.05.
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Stage 2
Analysing the simple and moderating
effects.
The simple effect
between IV-DV
(without moderator) is
0.837.
The moderating effect
is insignificant (-0.054,
p > 0.05). Moderating
effect does not occur .
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Simple slopes
(PLSc Algoirithm – Final results – Simple slope analysis )
The slopes at +1 and -1. SD are close to
each other, indicating the moderating effect
of Education is too small to be significant.
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Example7b:
A study is conducted to examine whether
Age moderates the effect of
(1) Peer influence on online behavior, and
(2) Online behavior on Online satisfaction.
Conceptual framework
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Research objectives:
to examine whether Age moderates the effects of:
(1) Peer influence on online behavior, and
(2) Online behavior on Online satisfaction.
Research questions:
What are the moderating effects of Age on the
relationships between:
(1) Peer influence and online behavior, and
(2) Online behavior and Online satisfaction?
Research hypotheses:
Age moderates the relationships between:
(1) Peer influence and online behavior, and
(2) Online behavior and Online satisfaction.
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Stage 1
Main effects:
Result:
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Simple effects and moderating effect
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Algorithm – Final results – Simple slope analysis
Age at -1 and +1 SD – the three graphs are
similar – No moderating effect
No interaction effect of Age*Online behaviour.
The slopes of the three graphs are almost parallel.
Age does not moderate the relationship.
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Algorithm – Final results – Simple slope analysis
Age at +1 SD (higher level of
Age) – the graph is steeper –
stronger relationship
Interaction effect of Age*Online behaviour occurs.
Age moderates the relationship between Peer influence
and Online behavior.
Conclusion: The relationship is stronger for high level
of Age compared to low lever of age.
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Moderating effect size
The moderating effect of Age on the
relationship between Online behaviour
and Online satisfaction (moderating effect
size = 0.119, p < 0.05) is large.
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RESEARCH STATISTICS
DR CHUA YAN PIAW (UM)
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Exercises
Analyse the moderating effects of EQ and
Communication (multiple indicators) on
the relationship between Mindset and
performance.
(Data: Example 6a).
Analyse the data and report the results.
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CONCEPTUAL FRAMEWORK
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RESEARCH STATISTICS DR CHUA YAN PIAW (UM)
