Business Unit Strategy, Managerial Characteristics, and Business Unit Effectiveness at Strategy Implementation.

Стратегия бизнес‑единицы, характеристики менеджмента и эффективность бизнес‑единицы при реализации стратегии
Anil K. Gupta, Vijay Govindarajan
1984-03-01

Build vs. harvest strategiesManagerial characteristicsMarketing/sales experienceStrategic business units (SBUs)Strategy implementation
Data from 58 strategic business units (SBUs) reveal that greater marketing/sales experience, greater willingness to take risk, and greater tolerance for ambiguity on the part of the SBU general manager contribute to effectiveness in the case of "build " SBUs but hamper it in the case of "harvest " SBUs. Despite the widespread acceptance of strategy's role in mediating an or-ganization's interaction with its environment (Andrews, 1971; Ansoff, 1965; Chandler, 1962; Child, 1972; Miles & Snow, 1978), the scope of research on strategy "implementation " has remained quite narrow. Following Chandler (1962), the concern has been predominantly with how a firm's organizational structure and control system are, or might be, related to the degree and nature of its product and geographic diversification (Fouraker
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In 'build' SBUs, greater managerial tolerance for ambiguity contributes positively to strategy implementation effectiveness.
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In 'build' SBUs, greater managerial willingness to take risk increases strategy implementation effectiveness.
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In 'build' SBUs, greater marketing/sales experience of the SBU general manager contributes to higher strategy implementation effectiveness.
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In 'harvest' SBUs, greater managerial willingness to take risk and greater tolerance for ambiguity hamper strategy implementation effectiveness.
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In 'harvest' SBUs, greater marketing/sales experience of the SBU general manager hampers strategy implementation effectiveness.

Strategic business units (SBUs)

How SBU general managers' characteristics (marketing/sales experience, risk-taking propensity, tolerance for ambiguity) affect business unit effectiveness in strategy implementation for 'build' versus 'harvest' SBUs

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1984-03-01
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Anil K. Gupta
Vijay Govindarajan
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