To more completely understand the basis for firm performance differences, we need greater clarity on the drivers of differentiation in managerial strategic decision making, as well as on the impact these decisions have on the composition and configuration of the firm’s resource portfolio. In this article, we provide an integrative framework that illustrates how strategic leaders influence firm strategy and performance. Our model clarifies the role that dynamic managerial capabilities play in fashioning a unique bundle of resources for the firm, thus leading to differences in firm strategies and performance outcomes. The process is illustrated by examples drawn from industry.