Business Unit Manager Influence on Corporate-level Strategy Formulation

Abstract

The focus of this study is on business unit managers, and their role in corporate-level strategy. In the traditional view of the strategic management process, corporate-level strategy is formulated by the Chief Executive Officer (CEO) and other inhabitants of the corporate office, and then implemented at lower levels, including the level of business unit manager. Hence in this view, business unit managers are implementers, rather than formulators, of corporate-level strategy. In our view, business unit managers exert "upward influence" within corporations, including influence on the formulation of corporate strategy. We identified antecedents of business unit manager influence on corporate strategy. We tested the strength of each of four antecedents. We found that the business unit managers who exert most influence on corporate strategy are those who report directly to the CEO, and those who manage business units that are large relative to the corporation itself. Hence the significant antecedents of upward influence are attributes of the corporation's organizational structure. In contrast, business unit manager influence on corporate strategy does not appear to be significantly affected by corporate strategy itself, or by business unit performance.ABSTRACT FROM AUTHOR

Cite this document ^(BETA)