How to Analyze Categorical Moderator in SEMinR?

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Moderation Analysis with Categorical Moderator using SEMinR?

The focus of the session is on how to perform moderation analysis using Categorical Moderators with Metric Independent and Dependent Variables.

In this example Type of Bank is taken as a Moderator. In the Model Private Banks are shown as the moderating categorical variable. The video and the code are presented for reference.

The code is to test the hypotheses, that Private sector banks have a stronger impact of Organizational Commitment on Collaborative Culture and similarly, in private sector bank the impact of Perceived Organizational Support on Collaborative Culture is stronger in comparison to public sector banks.

How to Design and Analyze a Measurement Model in SmartPLS 4?

library(seminr)
# Load the Data
datas <- read.csv(file = "Data.csv", header = TRUE, sep = ",")
head(datas)
# Create measurement model
simple_mm <- constructs(
  composite("OC", multi_items("OC", 1:8)),
  composite("POS", multi_items("POS", 1:5)),
  composite("CC", multi_items("CC", 1:6)),
  composite("Private", single_item("Type")),
  interaction_term(iv = "OC", moderator = "Private", method = two_stage),
  interaction_term(iv = "POS", moderator = "Private", method = two_stage))
# Create structural model
simple_sm <- relationships(
  paths(from = c("OC", "POS"), to = "CC"),
  paths(from = c("Private"), to = "CC"),
  paths(from = c("OC*Private"), to = "CC"),
  paths(from = c("POS*Private"), to = "CC"))
simple_pls <- estimate_pls(
  data = datas,
  measurement_model = simple_mm,
  structural_model = simple_sm,
  missing = mean_replacement,
  missing_value = "-99")

summary_simple <- summary(simple_pls)
plot(simple_pls)


# Bootstrap the model on the PLS Estimated Model
boot_model <- bootstrap_model(
  seminr_model = simple_pls,
  nboot = 1000,
  cores = parallel::detectCores(),
  seed = 123)

# Store the summary of the bootstrapped model
# alpha sets the specified level for significance, i.e. 0.05
summary_boot <- summary(boot_model, alpha = 0.05)

# Inspect the bootstrapped structural paths
summary_boot$bootstrapped_paths

Categorical Moderator SEMinR

H1: Type of Bank Moderates the Relationship between Organizational Commitment and Organizational Culture such that Private Sector Banks have a stronger impact of Organizational Commitment on Organizational Culture.
H2: Type of Bank Moderates the Relationship between Perceived Organizational Support and Organizational Culture such that Private Sector Banks have a stronger impact of Perceived Organizational Support on Organizational Culture.

Steps in Interpreting Categorical Moderation Analysis in SEMinR

In order to clearly identify how the interaction differs in terms of the groups, including the size and precise nature of the effect, we shall draw an interaction plot.
Review the Steepness of the Line.
The group where steepness is higher, the impact if stronger.
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Sample Interpretation

For H1: Type of Bank Moderates the Relationship between Organizational Commitment and Organizational Culture such that Private Sector Banks have a stronger impact of Organizational Commitment on Organizational Culture.

The results revealed a significant moderating role of Type of Bank on the relationship between OC and Collaborative Culture. The plot shows a steeper and positive gradient for private sector banks as compared to public sector banks. Thus, this shows that the impact of OC in fostering collaborative culture is stronger in private banks as compared to public sector banks. Hence, H1 is supported.

H2: Type of Bank Moderates the Relationship between Perceived Organizational Support and Organizational Culture such that Private Sector Banks have a stronger impact of Perceived Organizational Support on Organizational Culture.

The results revealed a significant moderating role of Type of Bank on the relationship between POS and Collaborative Culture. The plot shows a steeper and positive gradient for public sector banks as compared to private sector banks. Thus, this shows that the impact of POS in fostering collaborative culture is stronger in public sector banks as compared to private sector banks. Hence, H2 is not supported.

Video

Reference

Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook.

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How to Analyze Categorical Moderator in SEMinR?