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Implementing competitive strategies at the business unit level: Implications of matching managers to strategies

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  • Vijay Govindarajan

Abstract

This paper argues that, for superior performance, it is necessary to attune the choice of the general manager to the strategy of the business unit (SBU). Data from 121 SBUs indicate that SBU competitive strategy interacts with several managerial orientations (functional background, locus of control, and problem‐solving style) to influence SBU effectiveness. The theoretical and practical relevance of these findings are discussed, as are directions for future research.

Suggested Citation

  • Vijay Govindarajan, 1989. "Implementing competitive strategies at the business unit level: Implications of matching managers to strategies," Strategic Management Journal, Wiley Blackwell, vol. 10(3), pages 251-269, May.
    • Handle: RePEc:bla:stratm:v:10:y:1989:i:3:p:251-269
    DOI: 10.1002/smj.4250100305
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    1. P. Jean-Jacques Herings & Herakles Polemarchakis, 2006. "Pareto Improving Price Regulation when the Asset Market is Incomplete," Studies in Economic Theory, in: Christian Schultz & Karl Vind (ed.), Institutions, Equilibria and Efficiency, chapter 12, pages 225-244, Springer.
    2. Xin Huang & Koichi Nakagawa & Jie Li, 2017. "Effects of Top Management Team Characteristics on Corporate Charitable Activities: Evidence from the Board for Small and Medium-sized Enterprises in China," Discussion Papers in Economics and Business 17-30, Osaka University, Graduate School of Economics.
    3. Kayhan Tajeddini & Stephen Mueller, 2009. "Entrepreneurial characteristics in Switzerland and the UK: A comparative study of techno-entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 7(1), pages 1-25, March.
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    5. Hongbum Kim & Yuri Jo & Daeho Lee, 2021. "R&D, Marketing, Strategic Planning, or Human Resources? Which CEO Career Is Most Helpful for the Economic Sustainability of ICT Startups in South Korea?," Sustainability, MDPI, vol. 13(5), pages 1-14, March.
    6. Strandholm, Karen & Kumar, Kamalesh & Subramanian, Ram, 2004. "Examining the interrelationships among perceived environmental change, strategic response, managerial characteristics, and organizational performance," Journal of Business Research, Elsevier, vol. 57(1), pages 58-68, January.
    7. Arjen van Witteloostuijn & Marcus Dejardin & Julie Hermans & Dendi Ramdani, & Johanna Vanderstraeten & Jacqueline Brassey & Hendrik Slabbinck, 2015. "Fitting entrepreneurial, firm-level and environmental contingencies for better performance," Post-Print halshs-01379907, HAL.
    8. Wijbenga, Frits H. & van Witteloostuijn, Arjen, 2007. "Entrepreneurial locus of control and competitive strategies - The moderating effect of environmental dynamism," Journal of Economic Psychology, Elsevier, vol. 28(5), pages 566-589, October.
    9. Kallias, Antonios & Kallias, Konstantinos & Tsalkamas, Ioannis & Zhang, Song, 2023. "One size does not fit all: The conditional role of CEO education on IPO performance," Journal of Business Research, Elsevier, vol. 157(C).
    10. Ariyawardana, A. & Bailey, W.C, 2002. "The Relationship between Core Resources and Strategies of Firms: The Case of Sri Lankan Value-Added Tea Producers," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 4, pages 1-19.
    11. Boone, C.A.J.J. & van Witteloostuijn, A. & van Olffen, W., 2003. "Team composition, leadership and information-processing behavior : a simulation game study of the locus-of-control personality trait," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    12. David Opresnik & Maurizio Fiasché & Marco Taisch & Manuel Hirsch, 0. "An evolving fuzzy inference system for extraction of rule set for planning a product–service strategy," Information Technology and Management, Springer, vol. 0, pages 1-17.
    13. Panagopoulos, Nikolaos G. & Avlonitis, George J., 2010. "Performance implications of sales strategy: The moderating effects of leadership and environment," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 46-57.
    14. Hichem Dkhili & Hedi Noubbigh, 2013. "Management Control System and the Case of CSR in the Tunisian Industrial Companies: What Findings by the Method of Structural Equation?," International Review of Management and Marketing, Econjournals, vol. 3(2), pages 86-92.
    15. Lee, Jangwoo, 1995. "Small firms' innovation in two technological settings," Research Policy, Elsevier, vol. 24(3), pages 391-401, May.
    16. Fauré, Bertrand & Rouleau, Linda, 2011. "The strategic competence of accountants and middle managers in budget making," Accounting, Organizations and Society, Elsevier, vol. 36(3), pages 167-182, April.
    17. Stefan Schmid & Felix Roedder, 2022. "Much ado about diversity? The perpetuation of old elites on corporate boards," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3263-3285, December.
    18. Tawse, Alex & Tabesh, Pooya, 2021. "Strategy implementation: A review and an introductory framework," European Management Journal, Elsevier, vol. 39(1), pages 22-33.
    19. Nutt, P. C., 1995. "Implementation style and use of implementation approaches," Omega, Elsevier, vol. 23(5), pages 469-484, October.
    20. Runsten, Philip, 2017. "TEAM INTELLIGENCE: THE FOUNDATIONS OF INTELLIGENT ORGANIZATIONS - A Literature Review," SSE Working Paper Series in Business Administration 2017:2, Stockholm School of Economics.
    21. Van der Stede, Wim A., 2000. "The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation," Accounting, Organizations and Society, Elsevier, vol. 25(6), pages 609-622, August.
    22. David Opresnik & Maurizio Fiasché & Marco Taisch & Manuel Hirsch, 2017. "An evolving fuzzy inference system for extraction of rule set for planning a product–service strategy," Information Technology and Management, Springer, vol. 18(2), pages 131-147, June.
    23. Gill, Andrej & Visnjic, Nikolai, 2013. "Insight private equity," SAFE Working Paper Series 23, Leibniz Institute for Financial Research SAFE.
    24. Peters, H.J.M. & Zank, H., 2002. "A class of methods for evaluating multiattribute utilities," Research Memorandum 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

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