Pims: Fact or Folklore?

Abstract

Perhaps no strategic planning model has generated the controversy that PIMS has. Although some of the critics' charges may be justified, the authors find that the model is still valid and extremely valuable.

The Spurious Correlation of Ratios that Have Common Variables: A Monte Carlo Examination of Pearson's Formula

“…The PIMS database contains data for many ratio variables but does not contain meaningful absolute data for the components of those ratios, because of the proprietary information they would reveal. Reviewers of the PIMS database (Anderson & Paine, 1978;Lubatkin & Pitts, 1983) have acknowledged the multicollinearity of PIMS variables, but they have not specifically addressed the spuriousness of correlations among PIMS variables because of mathematical artifacts.…”

Strategic Planning: An Overview of Product Portfolio Models

“…The 1970s saw the widespread adoption of portfolio classification models (Day, 1977) and PIMS analyses of profitability determinants (Lubatkin and Pitts, 1983). US companies such as Mead, General Electric, Borg-Warner and Norton reported success stories as a result of using one or other of such techniques (Cushman, 1978;Loomis, 1980-81).…”

Data Envelopment Analysis: Theory, Methodology, and Applications

“…In most previous research, strategic groups have been identified either by inspection (Hunt, 1972;Porter, 1973Porter, , 1979Caves and Porter, 1977;Caves and Pugel, 1980;Harrigan, 1980;Miller, 1981;Oster, 1982;Frazier and Howell, 1983;Lahti, 1983;Lubatkin and Pitts, 1983;Kogut, 1984;Lecraw, 1984;Trembley, 1985;de Bondt, 1988) or by cluster analysis (Hatten and Schendel, 1977;Hatten, Schendel, and Cooper, 1978;Ramsler, 1982;Hayes, Spence, and Marks, 1983;Hergert, 1983;Hawes and Crittenden, 1984;Harrigan, 1985;Amel and Rhoades, 1987;Cool and Schendel, 1987;Fiegenbaum, Sudharshan, and Thomas, 1987;Amel and Rhoades, 1988;Mascarenhas and Aaker, 1989). In addition, other approaches to strategic groups involved analysis of variance (Tassey, 1983;Cool and Shendel, 1988), regressions (Caves, 1984;Primeaux, 1985;Fombrum and Zajac, 1987), chi squares tests (Hatton and Hatton, 1985) and three-mode factor analysis (Baird, Sudharshan, and Thomas, 1988).…”