The Centre for Accounting, Banking and Finance (CABF) under the Faculty of Business and Finance (FBF) organised a research talk titled “Testing mediation effect with SmartPLS” on 10 August 2017 at Kampar Campus.
The talk was delivered by Dr Wong Lai Soon from the FBF Department of Marketing. Present at the talk were FBF Deputy Dean for Student Development and Industrial Training Yew King Tak, Head of the Department of Commerce and Accountancy Theresa Wong Lai Har, CABF Chairperson Dr Krishna Moorthy Manicka Nadar and FBF lecturers.
Dr Wong
During his presentation, Dr Wong used one of his research projects titled “Revisit Intention on Cafes in Penang” to explain the process of testing the mediation effect by SmartPLS. He added that mediation and moderation effects can be tested with SmartPLS. After briefly explaining the research objectives and the data collection method of his study, he added that the following three steps were involved in the process of testing the mediation effect:
1. Assess the significance of the direct effect (P<0.05) without including the mediating construct between the exogenous construct and endogenous construct.
2. Assess the significance of the indirect effect (P<0.05) between the exogenous construct and endogenous construct through mediating construct.
3. Calculate the Variance Accounted For (VAF).
Then he added that VAF > 0.8 is full mediation, VAF 0.2 to 0.8 is partial mediation and VAF < 0.2 is no mediation.
Dr Wong presenting his research project
He further stated that according to Hair, Hult, Ringle and Sarstedt (2014), partial mediation can be defined as “the mediator accounts for some, but not all of the relationships between exogenous and endogenous construct” and “full mediation exist if the relationship between exogenous and endogenous construct is much less significant when the mediator is included in the path model”.
Then he presented the results of his research project by explaining the mediation effects. The talk ended with an interactive Q&A session.
© 2019 UNIVERSITI TUNKU ABDUL RAHMAN DU012(A).
Wholly owned by UTAR Education Foundation Co. No. 578227-M LEGAL STATEMENT TERM OF USAGE PRIVACY NOTICE