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

Despite the widespread acceptance of strategy's role in mediating an organization'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 & Stopford, 1968; Grinyer, Al-Bazzaz, & Yasai-Ardekani, 1980; Rumelt, 1974; Scott, 1973; Vancil, 1980). However^ strategy formulation and implementation take place not just at the level of the diversified firm as a whole, but also at the level of the divisions/strategic business units (SBUs) comprising the firm (Hambrick, 1980; Hofer & Schendel, 1978). In such a context, the near absence of empirical studies on strategy implementation at the SBU level presents a significant research opportunity.