Top management talent, strategic capabilities, and firm performance

We examine the relationship between executive talent and a set of firm capabilities shown to be necessary for achieving high firm performance across industries. The data for this study are drawn from a sample of 200 firms representing 50 industries. The firms were tracked over a 10-year time period. Results indicate that talent practices must be consistent, not only in supporting and consolidating existing strategic capabilities, but also in eliminating those that may be wasteful, inappropriate or no longer critical to the firm's mission. Cultivating the requisite talent for any firm must consider not only the firm's current growth strategy, but also the desired future strategy. Different talent practices are necessary to build and sustain capabilities contingent upon the strategic context of the firm. [PUBLICATION ABSTRACT]