Pricing

How to Add a Moderating Effect in SmartPLS 4

In SmartPLS 3 you created a moderating effect through the context menu. In SmartPLS 4 you draw it directly in the model: a connection from the moderator onto the path it moderates. SmartPLS then creates the interaction term for you.
  1. Select the Connect tool.
  2. Press the mouse button on the moderator.
  3. Drag onto the path you want to moderate, here from Independent to Dependent.
  4. Release the mouse button. The model now shows the moderating effect on that path.

Step by step

  1. Add the moderator to your model as a construct, with one or more indicators, like any other construct.
  2. Select the Connect tool in the Main toolbar.
  3. Click the moderator construct and keep the mouse button pressed.
  4. Move to the arrow (path) you want to moderate, for example from the independent to the dependent construct, and release the mouse button on that arrow.
The model now shows the moderating effect as an arrow from the moderator to the moderated path. You do not need to draw the path from the moderator to the dependent construct: SmartPLS adds it automatically when it computes the results, because the moderation results are only correct with it.

Results

Run the PLS-SEM algorithm. The results report shows the interaction term (for example Moderator × Independent → Dependent) with its path coefficient, and a simple slope plot for each moderating effect. To test whether the moderating effect is significant, run bootstrapping.

Common questions

Can I model a three-way interaction?

Yes. Draw a connection from the second moderator onto the moderating effect that is already in the model. SmartPLS adds the further relationships it needs automatically. See three-way and more way interaction.

Can I use a binary moderator, such as gender?

Yes. Code it as 0 and 1, not as 1 and 2, because the results are interpreted relative to zero. See the notes on binary moderators.

How does SmartPLS compute the interaction term?

In PLS-SEM, SmartPLS uses the two-stage approach. For CB-SEM models you choose the approach by double-clicking the moderating effect. Details: moderation in PLS-SEM and moderation in CB-SEM.