This paper argues that, for superior performance, it is necessary to attune the choice of the general manager to the strategy of the business unit (SBU). Data from 121 SBUs indicate that SBU competitive strategy interacts with several managerial orientations (functional background, locus of control, and problem‐solving style) to influence SBU effectiveness. The theoretical and practical relevance of these findings are discussed, as are directions for future research.
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Vijay Govindarajan (1989) studied this question.
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