Page 107 - [Uma_Sekaran]_Research_methods_for_business__a_sk(BookZZ.org)

VARIABLES 91

Figure 5.3A
Diagram of the relationship between the independent variable (availability of reference
manuals) and the dependent variable (rejects).

Availability of
Reference Manuals # of Rejects

IV DV

Moderating Variable
The moderating variable is one that has a strong contingent effect on the inde-
pendent variable–dependent variable relationship. That is, the presence of a third
variable (the moderating variable) modifies the original relationship between the
independent and the dependent variables. This becomes clear through the fol-
lowing examples.

Example 5.9 It has been found that there is a relationship between the availability of Reference
Manuals that manufacturing employees have access to, and the product rejects. That
is, when workers follow the procedures laid down in the manual, they are able to
manufacture products that are flawless. This relationship is diagrammed in Fig. 5.3A.
Although this relationship can be said to hold true generally for all workers, it
is nevertheless contingent on the inclination or urge of the employees to look
into the Manual every time a new procedure is to be adopted. In other words,
only those who have the interest and urge to refer to the manual every time a
new process is adopted will produce flawless products. Others who do not will
not be benefited and will continue to produce defective products. This influence
of the attributes of the worker on the relationship between the independent and
the dependent variables can be diagrammed as in Figure 5.3B.

Figure 5.3B
Diagram of the relationship between the independent variable (availability of reference
materials) and the dependent variable (rejects) as moduated by the moderating variable
(interest and inclination).

Availability of
Reference Manuals # of Rejects
IV DV

Interest
&
Inclination

MV