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Quality of management: the invisible engine of corporate performance

Author: Ghoshal, Sumantra ; Bartlett, Christopher A.INSEAD Area: Strategy Series: Working Paper ; 93/57/SM Publisher: Fontainebleau : INSEAD 1993.Language: EnglishDescription: 38 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: The performance of a firm is influenced by its relative position in the industry and by its stock of relevant, valuable and unique resources. The firm's ability to develop and deploy such resources and to build attractive market positions in its business is, in turn, influenced by its organizational capabilities (Rumelt, Schendel and Teece, 1991). Underlying both the strategic positions and the organizational capabilities are what Porter (1991) describes as "managerial choices", i.e., the decisions and actions that actors within the firm have taken over time. While neither comprehensive nor nuanced, this crude recapitulation of the last two decades of work in the strategy field points to the next question in the chain of causation : what factors influence these choices and actions of individuals within the firm ? More and better research can help resolve this contradictions by building a managerial theory of the firm grounded in the realities of contemporary practice
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The performance of a firm is influenced by its relative position in the industry and by its stock of relevant, valuable and unique resources. The firm's ability to develop and deploy such resources and to build attractive market positions in its business is, in turn, influenced by its organizational capabilities (Rumelt, Schendel and Teece, 1991). Underlying both the strategic positions and the organizational capabilities are what Porter (1991) describes as "managerial choices", i.e., the decisions and actions that actors within the firm have taken over time. While neither comprehensive nor nuanced, this crude recapitulation of the last two decades of work in the strategy field points to the next question in the chain of causation : what factors influence these choices and actions of individuals within the firm ? More and better research can help resolve this contradictions by building a managerial theory of the firm grounded in the realities of contemporary practice

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