This paper discusses major theoretical and methodological issues that strategic management researchers must consider when developing and testing configuration theories. The theoretical issues include: (1) number of domains, (2) causality, and (3) temporal stability. The methodological issues are: (1) specification of key constructs, (2) effects of data aggregation, (3) the choice of unit of analysis, and (4) the appropriateness of research methodologies. Greater attention to these issues should result in more accurate findings and more meaningful interpretations.