This paper investigates whether and how individual managers affect corporate behavior and performance. We construct a manager-firm matched panel data set which enables us to track the top managers across different firms over time. We find that manager fixed effects matter for a wide range of corporate decisions. A significant extent of the heterogeneity in investment, financial and organizational practices of firms can be explained by the presence of manager fixed effects. We identify specific patterns in managerial decision making that appear to indicate general differences in “style” across managers. Moreover, we show that management style is significantly related to manager fixed effects in performance and that managers with higher performance fixed effects receive higher compensation and are more likely to be found in better governed firms. In a final step, we tie back these findings to observable managerial characteristics. We find that executives from earlier birth cohorts appear on average to be more conservative; on the other hand, managers who hold an MBA degree seem to follow on average more aggressive strategies.

Using data from 62 automobile assembly plants worldwide, we examine the extent to which various structural cost drivers (plant scale, automation, and product mix complexity) and exe-cutionalcost drivers (product manufacturability, management policies, and production practices) account for plant-level differences in manufacturing overhead. Our analysis of structural drivers finds that overhead hours per vehicle are negatively associated with production volumes, consistent with economies of scale in overhead functions. However, automation appears to have little influence on overhead levels. Product mix complexity’s effect on overhead requirements varies with the complexity’s form and the plant’s manufacturing capabilities. Option and parts complexity (mea-sures of peripheral and intermediate product variety) both exhibit adverse effects on overhead, reflecting the considerable logistical, coordination, and supervisory challenges that accompany an increased number of parts and more complex manufacturing tasks. In contrast, model mix complexity (a measure of fundamental variety) appears to have little impact on direct or overhead labor requirements in auto assembly plants. Our analysis of executional drivers provides empirical support for the claim that advanced manufacturing practices such as the reduction of buffers, multiskilled production workers, and the use of teams can lower overhead costs. We also find

Empirical research on strategic human resource management is in infancy. Little is known about the approaches companies use to link their strategic choices with human resource practices to achieve superior financial perform-ance. Moreover, the studies conducted to date have used data from US com-panies, raising a question about the generalizability of these findings to other countries. In contrast, the current study empirically tests typology of compet-itive strategy, dimensions of participative human resource management and their impact on firm performance by using a data set from South Korean manufacturing firms. While competitive strategy types showed differential firm performance effect, the performance effect of participative human resource management types and their interactions with strategy were limited. Also, per-formance effects of sixteen different competitive strategy/participative human resource management matches have been explored. Successful strategy implementation requires the development of appropriate organ-izational functional skills and competencies. The evolutionary theory of the firm

Japanese competitiveness in a number of industries is the result of a combination of factors. Among the most important are a series of innovations and practices in manufacturing and product development that have been referred to as "lean": aimed at high productivity as well as high quality, and thus high price-

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