Understanding “It Depends” in Organizational Research: A Theory-Based Taxonomy, Review, and Future Research Agenda Concerning Interactive and Quadratic Relationships

The study of interaction effects is critical for creating, extending, and bounding theory in organizational research. Integrating and extending prior work, we present a taxonomy of two-way interaction effects that can guide organizational scholars toward clearer, more precise ways of developing theory, advancing hypotheses, and interpreting results. Specifically, we identify three primary interaction types, including strengthening, weakening, and reversing effects. In addition, we explore subcategories within these interaction types. Our review of articles published in leading management and applied psychology journals from 2009 to 2013 supports the generalizability of this framework. We offer specific recommendations for using this taxonomy to deliver more precise development, testing, and interpretation of interaction hypotheses.