JOHN McGEE Templeton College, Oxford, U.K. HOWARD THOMAS Department of Business Administration, University of Illinois at Urbana-Champaign, Champaign, Illinois, U.S.A. Nayyarâs comments on our paper (McGee and Thomas, 1986) are welcomed by the authors and some interesting issues are raised. We are pleased to have the opportunity to respond to these comments and to re-examine what we believe to be the key issues in the paper. We believe that a key proposition of the paper remains valid, that is, that systematic similarities and differences exist between firms as a result of âstrategicâ resource choices (i.e. decisions to invest in assets which are often difficult and costly to imitate). Our paper attempted to establish the usefulness of intra-industry stratification and specifically to examine the analytic relevance of a level of aggregation between the âindustryâ and the individual firm-the strategic group (SG) construct (Porter, 1979: 215; Porter, 1980: 129). We also attempted to assess the usefulness of this analytic grouping construct in understanding and interpreting the behavior of firms. For example, is the group a behavioral reference point for firms? Do groups always consist of competing firms? Nayyarâs comments certainly highlight the problematic nature of the existing research literature and
Strategic Management Journal – Wiley
Published: Jan 1, 1989
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