Implementing Competitive Strategies At The Business Unit Le

Abstract

A study examined the implications of matching managers to strategies at the strategic business unit (SBU) level. The data were collected from general managers of 121 SBUs. The results indicate that SBU competitive strategy interacts with several managerial orientations to influence SBU effectiveness. Greater research and development experience and greater internal locus of control contributed to effectiveness in the case of differentiation SBUs, but hampered it for low-cost SBUs. General managers who have manufacturing experience and who are feeling types contributed to performance in the case of low-cost SBUs, but detracted from it for differentiation SBUs. Experience in general management and industry familiarity were beneficial in a universal sense. Experience in finance and accounting had a negative effect on performance.