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Partial Least Squares Product Indicator Approach
The Product indicator approach, proposed by Chin(1996), was support in the VisualPLS. The predictor (X) and moderator (Z) indicators are used to create product indicators by creating all possible products from the two sets of indicators. These product terms are used to reflect the latent interaction variable. For example, if the predictor (X) has three indicators and the moderator variable (Y) has 2 indicators, as graphically depicted below, we would have six measures for representing the construct of interaction effect (X*Z).
Step to Model Interaction Effects with VisualPLS
Step 1: Generate Product Terms for Interaction Effects
Step 2: Create a Construct for Interaction Effect
Step 3: Assign product Indicators to Constructs
How to generate Product Terms for Interaction Effects
Click the Button, then select [New product terms (for interaction)]
If you want to generate product terms using existing construct, then select [Constructs] button, else select [Indicators] button
Press [Constructs] Button
the [Generate Product Terms from Constructs] window appear. The user then select predictor construct and moderator variable to generate product terms. Be sure to assign 2-character Alias for predictor and moderator variable to generate indicator name for products terms.
Press [OK] button, then these product terms will show up in the manifest variable list box.
Press [Indicators] Button
the [Generate Product Terms from Individiau items] window appear. The user then select predictor indicator and moderator indicator to generate a product term, one at a time. Be sure to assign 3-character Alias for predictor and moderator variable to generate indicator name for products terms.
Change/Delete Product Terms
Then generated product term can be deleted or changed. The Filter box will help user to list indicators related to a specific construct to ease the management of multiple product indicators.