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CB-SEM latent interaction: Unconstrained and orthogonalized approaches

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  • Cheah, Jun-Hwa
  • Memon, Mumtaz Ali
  • Richard, James E
  • Ting, Hiram
  • Cham, Tat-Huei

Abstract

Covariance Based – Structural Equation Modelling (CB-SEM) is often used to investigate moderation and latent interaction effects. This study illustrates and compares the application of constrained, unconstrained and orthogonalized CB-SEM approaches to latent variable interaction analysis using AMOS. Although all three techniques provided similar parameter estimates, the orthogonalized approach provided reduced standard errors resulting in identifying a significant latent interaction, suggesting the orthogonalized approach may be better suited for exploratory research.

Suggested Citation

  • Cheah, Jun-Hwa & Memon, Mumtaz Ali & Richard, James E & Ting, Hiram & Cham, Tat-Huei, 2020. "CB-SEM latent interaction: Unconstrained and orthogonalized approaches," Australasian marketing journal, Elsevier, vol. 28(4), pages 218-234.
    • Handle: RePEc:eee:aumajo:v:28:y:2020:i:4:p:218-234
    DOI: 10.1016/j.ausmj.2020.04.005
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