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Impact of community-based business model and competitive advantage on exports: evidence from diamond industry

Shubham Kumar (Department of Economics and Public Policy, Indian Institute of Management , Shillong, Shillong, India)
Deepak Kumar (Department of Economics and Public Policy, Indian Institute of Management , Shillong, Shillong, India)
Keya Sengupta (Department of Economics and Public Policy, Indian Institute of Management , Shillong, Shillong, India)
Tapas Kumar Giri (Department of Economics and Public Policy, Indian Institute of Management , Shillong, Shillong, India)

Competitiveness Review

ISSN: 1059-5422

Article publication date: 9 August 2020

Issue publication date: 4 February 2021

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325

Abstract

Purpose

This study aims to examine the altering paradigms for two specific characteristics of the international diamond industry: community-based business model and competitive advantage and their impact and interaction effect.

Design/methodology/approach

This study uses global value chain (GVC) analysis to understand the industry characteristics, social impacts and disruption in the international diamond industry. Further, normalized revealed comparative advantage is used to measure the competitiveness of different countries over time. Finally, stochastic frontier analysis is used to test the impact of the community-based business model and competitiveness on exports and estimate the technical efficiency.

Findings

The international diamond industry is witnessing changes in the business model, competitiveness, processes, policies and consumer behavior. While competitive advantage and community have a positive impact on exports, the relationship between competitive advantage and exports gets negatively moderated by the community. Further, insights from the GVC analysis indicate that though the industry is facing several disruptions and challenges, it has shown the unique quality of community reconfiguration and relocation.

Originality/value

This paper provides insights into the diamond industry facing multiple disruptions at various stages of GVC and contributes to the literature on international trade, community-based business models and GVC.

Keywords

Acknowledgements

The authors are grateful to the anonymous reviewers and the editor for their extremely useful suggestions to improve the quality of the article.

Declaration of conflicting interests: The authors declare no potential conflicts of interest with respect to the research, authorship and/or publication of this article.

Funding: The authors received no financial support for the research, authorship and/or publication of this article.

Citation

Kumar, S., Kumar, D., Sengupta, K. and Giri, T.K. (2021), "Impact of community-based business model and competitive advantage on exports: evidence from diamond industry", Competitiveness Review, Vol. 31 No. 2, pp. 276-296. https://doi.org/10.1108/CR-12-2019-0130

Publisher

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Emerald Publishing Limited

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