Levels Issues in Theory Development, Data Collection, and Analysis

Despite past entreaties to organizational theorists and researchers to address levels issues more carefully, levels issues continue to arouse confusion and controversy within the organizational literature. We highlight three alternative assumptions that underlie the specification of levels of theory throughout organizational behavior: (a) homogeneity within higher level units, (b) independence from higher level units, and (c) heterogeneity within higher level units. These assumptions influence the nature of theoretical constructs and propositions and should, ideally, also influence data collection, analysis, and interpretation. Greater attention to levels issues will strengthen organizational theory development and research.