Difference: Moderation Effect & Interaction Effect


  • Theoretically moderator effect differs slightly from interaction effects
  • Moderator refer to variable that alter an observed relation in the population
  • While interaction effect refer to any situation in which the effect of one variable depends on the level of another variable  
  • Moderator is not part of a causal sequence but qualifies the relation between X and Y
  • For intervention research, moderator variables may reflect subgroups of persons for which the intervention is more or less effective than for other groups
  • In general, moderator variables are critical for understanding the generalisability of a research findings to subgroups



Example:

  • The true relationship between X & Y is more revealed when critical moderating variables are inserted in the model
  • It is point out that ‘size of the hotel’ is an influential factor which effects the relationship between X & Y, because small hotels are much more exposed to risks than large franchise hotels. (Kang et al.2015), Pivato and Misani 2008, and WU and KO 2013)
  • Other researchers have also reported the effect of firm size in other contexts (e.g. Namazi et al. 2015 and Niresh and Velnampy, 2014) 
Sources from: Professor Dr. Dileep Workshop on Role of Theory, Moderation & Mediation on 3 August 2019.  

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