Hello,
I am running a regression to test the relationship between product innovation and sales growth, with open innovation as a moderator. My model is the following:
The output coefficients of the relevant variables are the following:
- product_in: .1160281
- open_innovation: .1460082
- product_in x open_innovation: -.1141723
I now want to plot this moderation effect. Both product_in and open_innovation are dummy variables. I used the following code:
The graph looks like this:
However, this graph does not portray the negative interaction effect found in the coefficient. Is this graph correct? Or is there another way to plot the interaction effect as both variables are dummies?
Thank you.
I am running a regression to test the relationship between product innovation and sales growth, with open innovation as a moderator. My model is the following:
Code:
xtreg logsales_growth product_in##i.open_innovation process_in logsales_old logfirm_age part_of_group i.legal_status international i.industry i.country if high_growth == 1, re vce(robust)
- product_in: .1160281
- open_innovation: .1460082
- product_in x open_innovation: -.1141723
I now want to plot this moderation effect. Both product_in and open_innovation are dummy variables. I used the following code:
Code:
margins product_in#open_innovation marginsplot, noci
However, this graph does not portray the negative interaction effect found in the coefficient. Is this graph correct? Or is there another way to plot the interaction effect as both variables are dummies?
Thank you.
