Application of multilevel confirmatory factor analysis to compositional organizational constructs

Purpose This study aims to offer insight into the applications of multilevel confirmatory factor analysis (MCFA) within organizational behavior (OB) studies, specifically when using macro-level variables. The authors used the case of a scale measuring collective organizational engagement (COE) to demonstrate the advantage of using MCFA over single-level confirmatory factor analysis (CFA). Design/methodology/approach The authors used nine referent-shift items to measure the dimensions of physical, cognitive and emotional COE. MCFA and aggregated single-level CFA were conducted on the same data using Mplus V. 8.7, and the authors compared standardized parameters from the two techniques. Findings The results indicate a three-factor model of collective engagement with CFA and MCFA. Stronger item loadings, factor correlations and composite reliability were found in the MCFA within-level model compared to aggregated CFA model. MCFA also supported an alternate one-factor-between-three-factors-within model of COE. Originality/value This study demonstrates the application of MCFA with a compositional construct and compares MCFA to mean-aggregated single-level CFA. It presents a case for OB researchers to apply MCFA to compositional constructs as a best methodological practice.