Multilevel Theory Building in Entrepreneurship Research: Presenting an Improved Approach

The multilevel approach to theory building with the simultaneous understanding of phenomena at multiple levels of analysis provides opportunities for developing new theories with a rich context and more effective data interpretation. Single-level approaches to theory building are not able to explain the complexity of phenomena, because phenomena have antecedents, mediators, moderators, and consequences that are at different levels. In the field of entrepreneurship, we see the predominance of single-level theories. The existing theories in the field of entrepreneurship have examined the micro or macro levels separately and by ignoring the middle level and the interaction between the levels, they have not been able to present a holistic picture of entrepreneurial phenomena that reflects their complexities. Therefore, correct, rich, comprehensive and valuable insights are not obtained from theories. In the few existing multi-level theories, a proper and comprehensive approach to theorizing has not been adopted. Based on this, this research, while explaining the necessity and nature of multilevel theory building and its various approaches, presents an improved approach through the analysis and criticism of existing approaches. In the improved approach, steps such as the emergence of collective phenomena, identification of the function and structure of phenomena, rules of interaction between constructs, flexibility of levels, validity of constructs, confirmation or operationalization of theory and interpretation of results are proposed.  In addition, new developments in this approach such as the role of people in shaping the organizational context are proposed. It is expected that the results of this research will change the views of single-level researchers and provide a suitable practice guide for interdisciplinary theorists interested in multi-level studies.