Improving Our Understanding of Moderation and Mediation in Strategic Management Research

Abstract

We clarify differences among moderation, partial mediation, and full mediation and identify methodological problems related to moderation and mediation from a review of articles in Strategic Management Journal and Organization Science published from 2005 to 2014. Regarding moderation, we discuss measurement error, range restriction, and unequal sample sizes across moderator-based subgroups; insufficient statistical power; the artificial categorization of continuous variables; assumed negative consequences of correlations between product terms and its components (i.e., multicollinearity); and interpretation of first-order effects based on models excluding product terms. Regarding mediation, we discuss problems with the causal-steps procedure, inferences about mediation based on cross-sectional designs, whether a relation between the antecedent and the outcome is necessary for testing mediation, the routine inclusion of a direct path from the antecedent to the outcome, and consequences of measurement error. We also explain how integrating moderation and mediation can lead to important and useful insights for strategic management theory and practice. Finally, we offer specific and actionable recommendations for improving the appropriateness and accuracy of tests of moderation and mediation in strategic management research. Our recommendations can also be used as a checklist for editors and reviewers who evaluate manuscripts reporting tests of moderation and mediation.

Inclusion climate: A multilevel investigation of its antecedents and consequences

“…Our model included the testing of two mediation effects (H3 and H6). Following recommendations by Aguinis, Edwards, and Bradley (), we tested the full mediation model as a baseline and then tested the consequences of including the direct effects on the fit of the model. Although all direct and indirect relationships are significant, the model fit of the multilevel full mediation model was not satisfactory ( χ 2 [11] = 154.78, CFI = 0.85, TLI = 0.72, SRMR within = 0.04, SRMR between = 0.12 and RMSEA = 0.06).…”

The Cognitive, Behavioral and Social Prospectives of Organizational Learning Through Information System

“…Quantitative research focuses more on the ability to complete statistical analysis to find the answer and uses measurable data to formulate facts and uncover patterns in research. Surveys are the most useful tool in describing the characteristics of a large population (Aguinis, Edwards, & Bradley, 2016). No other research method can provide this broad capability.…”

“…It is also called a situational force as it exerts its power and accordingly strengthens or weakens the relationship among variables or objects (Aguinis, Edwards, & Bradley, 2016). Most of the times, moderation brings consistency and quality in uncertainties and inconsistencies (Rehman, 2007).…”

“…Most of the times, moderation brings consistency and quality in uncertainties and inconsistencies (Rehman, 2007). Learning phenomenon at all levels needs the support and moderation of the external elements, tools and stimuli (Aguinis, Edwards, & Bradley, 2016). Information system are considered as the most prevalent and supportive element and is proving its efficacy in the learning environment (Adcock, 2012;Aragón, Jiménez, & Valle, 2016).…”

“…Technologies such as data warehousing, expert systems, best-practice databases, and intranet/internet systems contain tools, which help in organizational learning, memory development and network technologies were used for the access of memory contents (Aguinis, Edwards, & Bradley, 2016). Versatility, capacities and capabilities of the Information and communications systems are increasing day by day, they are capturing every aspect of human life, therefore behaviourists, social constructivists demand regeneration of organizational (Adcock, 2012;Ahmad & Lodhi, 2014).…”