Despite widespread resource sharing among strategic business units (SBUs), questions such as when resource sharing is desirable and what its administrative implications are have rarely been examined. In this study, data from 58 SBUs revealed that (1) the utility of resource sharing depends on an SBU's competitive strategy, (2) the optimal specification of incentive systems for general managers of SBUs is a function of magnitude of resource sharing, and (3) resource sharing has a negative effect on the job satisfaction of general managers.