I'm trying to learning the Density Matrix Renomalization Group (DMRG) method from the book "Strongly Correlated Systems: Numerical Methods". For a two-spin system they build a Hamiltonian from the outer product of the operators for each spin. Starting from the operators, $$ \hat{H} = \hat{S}^{z}_1 \hat{S}^{z}_2 + \frac{1}{2}[\hat{S}^{+}_1\hat{S}^{-}_2 + \hat{S}^{-}_1\hat{S}^{+}_2] $$ one gets the matrix for the Hamiltonian: $$ H_{12} = S^z \otimes S^z + \frac{1}{2}[S^+ \otimes S^- + S^- \otimes S^+] $$ and so far, so good. But then, when they add a third spin, I understand the Hilbert space now consists of 8 basis states so the matrices will be $8 \times 8$, and the book has this formula: $$ H_{3} = H_2 \otimes I_2 + \tilde{S}^z_2 \otimes S^z + \frac{1}{2}[\tilde{S}^+_2 \otimes S^- + \tilde{S}^-_2 \otimes S^+] $$ where the tilde matrices are defined as $\tilde{S}^z_2 = I_2 \otimes S^z$.
So my question is why is the first term of $H_3$ written as $H_2 \otimes I_2$ in that order (which I think I understand, as we are making the Hilbert space bigger) while the z-spin matrix defined in the reverse order, $I_2 \otimes S^z$? What is the meaning or significance in the order of these factors?
EDIT I forgot to mention that the book paints the picture of a pair of spins, and in the first Hamiltonian written above, the #1 operators act on the "left" spin while the #2 operators on the "right" spin. Then, the third spin is added "to the right" of the previous pair. I am not sure if that is relevant to the order of factors.