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Performance Implications Of Aligning CEO Functional Experiences With Competitive Strategies

Reginald M. Beal, Masoud Yasai-Ardekani

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This study examines the performance consequences of aligning managerial functional experiences with generic competitive strategies and adopts a multidimensional view of generic competitive strategies involving low-cost leadership and several differentiation based strategies. Using data on a sample of 101 small manufacturing firms, the results of analysis provide substantial support for the alignment hypotheses. The study further tests a series of hypotheses on alignments between combined managerial experiences and hybrid strategies that combine low-cost leadership with differentiation based strategies. The findings indicate that superior performance results in conditions where managerial functional experiences are congruent with the requirements of particular generic or hybrid strategies.