Strategy, Control Systems, and Resource Sharing: Effects on Business-Unit Performance.

Key Points

• To examine the relationships among management control systems, resource sharing, and competitive strategies, and evaluate their interactive effects on strategic business unit performance.
• Assessed strategic business units (SBUs) operating within diversified multi-business corporations.
• Examined administrative control mechanisms, resource-sharing arrangements, and competitive strategic orientations.
• Evaluated the interactive and contingency effects of these organizational variables on unit-level financial and operational performance.
• Demonstrated that the alignment among competitive strategy, administrative control systems, and inter-unit resource sharing significantly impacts business-unit performance outcomes.