Exploring the Determinants of Unit Performance

This article 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 performance over time. The study complements traditional research in strategy by advancing a middle manager perspective. More specifically, it highlights the importance of middlemanagers' 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 middle managers enact strategy, who they are, and where they are significantly affect profit growth in their units.