The Curious Case of Cross‐Level Effects: Refining Our Understanding to Match Our Methods

ABSTRACT The surge in organizational scholarship exploring cross‐level relationships in recent years has not been matched by a thorough understanding of the nature and implications of these effects. This misalignment can lead to levels of analysis fallacies, resulting in incomplete and unintentionally misleading interpretations that potentially hinder the theoretical advancement of organizational research. This paper clarifies the distinct characteristics of cross‐level effects and discusses their ramifications within the field of organizational behavior. Following this conceptual explanation, we present an integrative review of 313 cross‐level articles published between January 2011 and December 2023 in 10 prominent management journals. Our review revealed many opportunities for improvement: 62% of papers with cross‐level direct effects, 67% with cross‐level indirect effects, and 80% with cross‐level interactions exhibited theoretical flaws or omissions, often misapplying cross‐level theory or misinterpreting findings. We propose specific recommendations to refine the argumentation and interpretation of cross‐level effects in future research. This comprehensive review and guidance for researchers aims to address the current challenges and chart a course for more rigorous and theoretically grounded research in cross‐level organizational studies.