Table 2: Porter Generic Strategies and Establishment Performance
Dependent Variables: Log of Sales Revenue and Log of Gross Margin on Sales
Independent variables Model 1a Model 1b Model 2a Model 2b
Intercept 7.3623*** 7.323*** 5.1408** 4.7982**
Basic Performance Model
Establishment is part of a multi- establishment organization (dummy) Log of total book value of establishment's
-0.3368*** -0.3445*** -0.5677*** -0.5824***
0.2731*** 0.2776*** 0.3674*** 0.3772*** capital equipment Log of cost of goods sold 0.3943*** 0.3986*** 0.1202*** 0.1327*** Log of average hours worked per week for technical, production, and clerical workers Percentage of capital equipment less than 1 year old Percentage of capital equipment 1 to 4 years old -1.010** -0.9876** -0.5162 -0.4624
0.0047 0.0027 0.0049 0.0047
0.0041* 0.0039* 0.0044* 0.0039 Operating above capacity (dummy) ' -0.0010 -0.0052 0.0694 0.0054 Operating below capacity (dummy) 0.1759* 0.1867* 0.1492 ' 0.1600 Percent of total 1993 sales exported 0.0130*** 0.0125*** 0.0145** 0.0125** Establishment has a research & ' -0.1376 ' -0.1550 -0.1204*** -0.1395 development center (dummy) Year establishment began operating -0.1273** -0.1205* -0.1541* -0.1272*
Porter Generic Strategies
Low cost strategy -0.2678 -0.5198*
Focus strategy -0.1301 -0.2736
Differentiation strategy
'
-0.1350
'
-0.0660
Adjusted R 2 0.51*** 0.51*** 0.35*** 0.36*** N 878 878 817 817 p<.10, * p<.05, ** p<.01, *** p<.001
Alternatives to Generic Typologies in SHRM 64
Note: Industry dummy variables included in all models, but not reported.
Alternatives to Generic Typologies in SHRM 65
Table 3
Combinations of Resource Allocation Decisions
and Breadth of Strategic Parameters
Early Resource Delayed Resource
Broad Strategic Parameters Tight Strategic Parameters Allocation Allocation A B C D
Alternatives to Generic Typologies in SHRM 66
AUTHORS' BIOGRAPHICAL INFORMATION
Clint Chadwick is an Assistant Professor of Labor and Industrial Relations at
the Institute of Labor and Industrial Relations, University of Illinois at Urbana-
Champaign. His research interests include the strategic impact of human resource
systems, reengineering, downsizing, and other strategic renewal efforts, and the impact
of individuals' value-based differences on organizational effectiveness.
Peter Cappelli is Professor and Chair of the Management Department at the Wharton
School, Director of Wharton's Center for Human Resources, and Co-director of the
U.S. Department of Education's National Center on the Educational Quality of the
Workforce (EQW). He has degrees in industrial relations from Cornell University and
in labor economics from Oxford. Professor Cappelli's research has examined labor
relations, changes in work and the effects on skill requirements, the contribution of work
place attitudes and behaviors to job related skills, and the effects on work force skills