During recent decades, management research has paid particular attention to the importance of the involvement of middle managers in the conduct of organizations. This study is in the vein of a growing literature arguing for middle managers to play a central role in developing organizational capabilities and thus improving company performance. Research has suggested that this involvement may add value not only to the implementation of strategy but also to its formulation. The aim of this study is to examine how the involvement of middle managers in strategy making processes as well as their autonomous actions can develop organizational capabilities and thus improve company performance. In other words, we examine how organisational capabilities have a mediating effect on the relationship between the involvement of middle managers as well as their autonomous actions and company performance. To this end, a quantitative empirical study was conducted among European companies revealing the following results: first, organisational capabilities have a mediating effect on the relationship between middle managers involvement in the strategy making as well as their autonomous actions and company performance. Second, no direct effect was identified between either middle managers’ involvement or middle managers’ autonomous actions and company performance.
