It is popular to assume that there is a link between skill and performance, yet the evidence is tenuous. Both terms defy simple definition and much current work aggregates findings, conflating firms that compete on the basis of skill with those that do not. This article provides a detailed review of the difficulties involved. Skill may indeed contribute to performance on the shop floor but the performance of the organization as a whole is not the same as that of the shop-floor writ large, while soft skills are difficult to assess and judgments may be contaminated by prejudice. It concludes with suggestions for better research designs that could capture this relationship. © Blackwell Publishing Ltd/London School of Economics 2010.
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