Managerial competence as a necessary but insufficient condition for unit-level performance

Purpose This study examines whether managerial competence proficiency influences unit-level performance and whether this relationship is better understood through sufficiency or necessity causal logics. Design/methodology/approach We analyzed organization-generated competence appraisal data for 674 branch managers from a large nationwide bank. Using both regression analysis and necessary condition analysis (NCA), we examined whether managerial competencies explain variation in unit-level performance and whether minimum competence levels are required for high performance outcomes. Findings Regression results indicate that managerial competence alone does not strongly explain variation in unit-level performance. However, NCA results suggest that managerial competence functions as a qualifying condition that enables high performance outcomes. Practical implications The findings suggest that competence-based HR systems may benefit from treating managerial competence as a foundational capability condition that supports high performance when combined with appropriate organizational and contextual factors. Originality/value This study provides a relatively rare large-scale empirical examination of whether organization-generated managerial competence appraisal data predict unit-level performance. It also contributes by integrating sufficiency- and necessity-based analytical approaches, demonstrating how different causal logics generate distinct interpretations of the competence–performance relationship.