To aggregate or not to aggregate: steps for developing and validating higher-order multidimensional constructs

The use of higher-order multidimensional constructs (i.e., latent constructs comprised of standalone variables) in the organizational psychology and behavior literatures is becoming commonplace. Despite their advantages (e.g., greater parsimony and bandwidth), the development and validation of such constructs often unfolds in an indiscriminant fashion. It is not surprising, then, that much debate has arisen regarding the viability of many higher-order constructs. In this article, we outline ten recommendations for improving the construct- and criterion-related validity of higher-order constructs. Chief among these recommendations include the need for researchers to specify precise theoretical and empirical inclusion criteria, to rule out alternative explanations for the emergence of a higher-order factor and to assess incremental and relative importance. To illustrate how these recommendations play out, we apply them to core self-evaluation as an example. We believe that higher-order constructs may offer unique insight into work-relevant phenomena, provided they are established via rigorous means.