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IESE Research Papers,
IESE Business School

No D/513: Opening the black box: Applying a people perspective to examine the origins of unit performance

Johanna Mair ()
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Johanna Mair: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN

Abstract: This paper sets out to identify the origins of performance differences between units within the same organizational and industry context. Building on and reconciling diverse research streams, it empirically tests the effect of strategic, individual and context factors on profit growth. The study complements traditional research in strategy by advancing a "people-oriented perspective". More in particular, it centers on middle managers and emphasizes the importance of their actions aligned with strategy, their demographic characteristics, and their immediate competitive environment in stimulating performance. Data on 119 managers and units of a European financial services firm suggest that how managers enact strategy, who they are, and where they are significantly affect the performance of their units.

Keywords: unit performance; enacted strategy; middle managers; demographics

17 pages, August 2, 2003

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