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Article
Publication date: 20 March 2017

Manjeet Kharub and Rajiv Sharma

The purpose of this paper is to measure and analyze the competitive advantage of micro, small and medium enterprises (MSMEs) based upon the Porter’s diamond framework. The major…

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Abstract

Purpose

The purpose of this paper is to measure and analyze the competitive advantage of micro, small and medium enterprises (MSMEs) based upon the Porter’s diamond framework. The major objective is to contribute toward better understanding of various determinants of the diamond model in context within Indian MSMEs.

Design/methodology/approach

Extent review of the literature has been done to identify various critical factors contributing to developing a competitive advantage. Exploratory factor analysis and internal consistency tests were performed to verify scales validity and reliability of measuring instrument (questionnaire). In research design, a case study approach has been used, in which MSMEs operating in the pharmaceutical, electrical and electronics, automobile, food and textile sectors were considered.

Findings

Study findings indicate that the pharmaceutical sector is more competitive followed by food (112.491) as revealed by the high value of surface area i.e. 150.931. The competitiveness among MSME sectors is mostly affected by demand conditions followed by firm strategy, structure and rivalry. Moreover, the score of diamond axes indicates significant difference with respect to determinants. For instance, in the textile sector, the determinants such as factor conditions and related and supporting industries scored low, for example, 4.710 and 4.280, respectively, which indicates it needs to be strengthened as this sector stands at last position with minimum surface area, for example, 67.398.

Research limitations/implications

Owing to the time and resource constraints, this study was conducted in MSMEs situated in the state of Himachal Pradesh, India, and thus generalizations of results are rather limited.

Practical implications

This study is one of the original being undertaken by authors which helps to underline the importance of various determinants which may help the MSME units to improve competitiveness by implementing effective competitive strategies. The study could be extended to other regions of the country.

Originality/value

This study is a result of extended research on competitiveness and provides an instrument to measure firm ability to be competitive. CEO’s, managers and policy makers from industries as well as government will be able to use this to evaluate their competitive positioning and identify key problem areas which required improvements.

Details

Competitiveness Review: An International Business Journal, vol. 27 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 5 June 2017

Ibrahim M. Awad and Alaa A. Amro

The purpose of this paper is to map the cluster in the leather and shoes sector for improving the competitiveness of the firms. Toward this end, the study is organized to examine…

Abstract

Purpose

The purpose of this paper is to map the cluster in the leather and shoes sector for improving the competitiveness of the firms. Toward this end, the study is organized to examine the impact of clustering on competitiveness improvement. The influence of competitive elements and performance (Porter’s diamond) and balanced score card was utilized.

Design/methodology/approach

A random sample of 131 respondents was chosen during the period from May 2016 to July 2016. A structural equation modeling (SEM) analysis was applied to investigate the research model. This approach was chosen because of its ability to test casual relationships between constructs with multiple measurement items. Researchers proposed a two-stage model-building process for applying SEM. The measurement model was first examined for instrument validation, followed by an analysis of the structural model for testing associations hypothesized by the research model.

Findings

The main findings show that there is a unidirectional causal relationship between improvements of performance and achieve competitiveness and also reveal that the Palestinian shoes and leather cluster sector is vital and strong, and conclude that clustering can achieve competitiveness for small- and medium-sized enterprises.

Research limitations/implications

Future research can examine the relationship between clustering and innovation. The effect of clustering using other clustering models other than Porter’s model is advised to be used for future research.

Practical implications

The relationships among clustering and competitiveness may provide a practical clue to both, policymakers and researchers on how cluster enhances economic firms such as a skilled workforce, research, development capacity, and infrastructure. This is likely to create assets such as trust, synergy, collaboration and cooperation for improved competitiveness.

Originality/value

The findings of this study provide background information that can simultaneously be used to analyze relationships among factors of innovation, customer’s satisfaction, internal business and financial performance. This study also identified several essential factors in successful firms, and discussed the implications of these factors for developing organizational strategies to encourage and foster competitiveness.

Article
Publication date: 1 April 2006

Byoungho Jin and Hwy‐Chang Moon

The Korean textiles and apparel‐related industry has played a major role in the country's development; however, this sector's competitiveness is decreasing due mainly to labor…

16298

Abstract

Purpose

The Korean textiles and apparel‐related industry has played a major role in the country's development; however, this sector's competitiveness is decreasing due mainly to labor costs. As with the country's economic development, the new sources of competitive factors need to be strategically developed and cultivated. The purpose of this study is to explore what constitutes a country's competitiveness in the global apparel market after losing its labor competitiveness and how a country effectively achieves it.

Design/methodology/approach

This study employs two competitiveness models, Porter's diamond model and a generalized double diamond model, as a theoretical framework. Along with two theoretical models, this study employs extensive literature reviews, examples of successful firms, and four interviews with field practitioners in the Korean apparel industry.

Findings

Beginning with Porter four determinants (factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry), new sources of competitive advantage factors are suggested for the evolving industry. The generalized double diamond model incorporates international activities, which may occur either within a country or outside a country. Utilizing generalized double diamond model, the future directions and solutions for the industry with the identified new competitive factors were suggested.

Originality/value

Based on the models and the identification of new competitive factors, the Korean apparel industry is reviewed, and recommendations are made for its continued growth in the global marketplace. Implications pertaining to the creation of a dynamic self‐reinforcing diamond system were also suggested.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 10 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 28 June 2019

Muhammad Hanafi, Dermawan Wibisono, Kuntoro Mangkusubroto, Manahan Siallagan and Mila Jamilah Khatun Badriyah

This research aims to examine the smelter industry’s investment competitiveness in Indonesia as well as to find solutions to improve its competitive advantage for the nation.

Abstract

Purpose

This research aims to examine the smelter industry’s investment competitiveness in Indonesia as well as to find solutions to improve its competitive advantage for the nation.

Design/methodology/approach

This research applies a sequential mixed-methods approach with a second quantitative phase building on an initial first qualitative phase. The qualitative phase is conducted by interviews to find the root causes of problems as well as solutions to gain smelter industries’ competitiveness. The quantitative phase is conducted by a system dynamics model. A descriptive causal loop diagram is created based on interviews and focus group discussions to describe the problems. The concept of competitive advantage of a nation from Porter’s diamond model is applied in this research.

Findings

The results reveal the complexity of smelter industries in Indonesia. The paper also addresses the causes of problems and interaction of variables using a causal loop diagram. To gain the smelter industry’s competitiveness, this paper suggests the potential policy development to increase competitiveness of the smelter industry such as policy for different fiscal incentives to each different mineral, effective export duty and exploration obligation.

Practical implications

The result of this study provides a good basis for government in making policy to improve the competitive advantage of the smelter industry investment in Indonesia.

Originality/value

This is the first research on smelter industry competitiveness that applies Porter’s diamond model and system dynamics model to find solutions in designing appropriate policy to gain competitiveness.

Details

Journal of Science and Technology Policy Management, vol. 10 no. 3
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 17 July 2017

Muhammad Hanafi, Dermawan Wibisono, Kuntoro Mangkusubroto, Manahan Siallagan and Mila Jamilah Khatun Badriyah

This paper aims to create a mapping of competitive advantage of nations (CAN) from research using some previous studies and recommend future research.

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Abstract

Purpose

This paper aims to create a mapping of competitive advantage of nations (CAN) from research using some previous studies and recommend future research.

Design/methodology/approach

This paper applies a systematic literature review on the most recent studies of CAN. The research gap is analysed based on several categories: implication (strategy and policy, portrait); general characteristics (fundamental issues, indicators and patterns); solution methodology and strategic level (nation and industry). Then, the state-of-the-art analysis is used to develop future research.

Findings

The results of this study recommend future research of CAN based on the following CAN categories: implication (strategy and policy, portrait); general characteristics (fundamental issues, indicators and patterns); solution methodology and strategic level (nation and industry).

Research limitations/implications

This literature review has important implications and gives direction for research and teaching, as well as for further investigation of CAN. The limitation lies in the classification of patterns, which requires further study to avoid the ambiguity of grouping.

Originality/value

This is the first literature review about CAN using categories. It is of value in building future research of CAN in different industries and nations.

Details

Competitiveness Review: An International Business Journal, vol. 27 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 10 May 2011

Manveer Mann and Sang‐Eun Byun

The Indian retailing industry has undergone dramatic changes because of the government's recent liberalization in retail sectors along with the country's rapid economic…

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Abstract

Purpose

The Indian retailing industry has undergone dramatic changes because of the government's recent liberalization in retail sectors along with the country's rapid economic development and emerging consumer groups with market power. Despite the increasing importance of India in the global market, little is known about apparel retail sectors in India and the information available is fragmented and under‐developed. The purpose of this paper is to assess the competitiveness of the Indian apparel retail industry and the changing market conditions since the 2006 retail trade liberalization to identify the opportunities and challenges of operating in the Indian market.

Design/methodology/approach

This study employs Porter's diamond model as the theoretical framework. This study conducts an extensive review of published documents including academic journals, trade publications, and government and industry web sites and discusses them within the framework of the diamond model.

Findings

By analyzing the multi‐determinants of the diamond model (factor conditions, demand conditions, related and supporting industries, firm strategy and rivalry and the role of government), the authors identified key opportunities and challenges of entering the Indian apparel retail industry.

Originality/value

This study provides a comprehensive view of the rapidly evolving Indian apparel retailing industry by evaluating multi‐dimensions of competitive conditions in Porter's model.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 15 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

Book part
Publication date: 13 June 2023

Nancy H. Bouchra and Rasha S. Hassan

This chapter examines the competitiveness of the tourism cluster in the United Arab Emirates (UAE) by applying Porter's competitiveness of nation diamond model, with its four…

Abstract

This chapter examines the competitiveness of the tourism cluster in the United Arab Emirates (UAE) by applying Porter's competitiveness of nation diamond model, with its four dimensions: factor conditions, demand conditions, the related and supporting industries, and, lastly, the firm's strategy and rivalry. Specifically, we provide a thorough analysis of the UAE's strategic plans, initiatives, and tactics to cultivate competitiveness in tourism across the nation. This includes the draft of a vision for the nation, decisions to build and reinforce their infrastructure, determination to develop and nurture skilled workforce, ability to respond innovatively to their customers' evolving demands, selection of the appropriate base for competition, and, finally, continuous melioration of related industries. Examining secondary data and by reviewing governmental reports, we find that UAE did not cultivate a national advantage by owning random natural resources, but rather by having a strategic intent to converge all their efforts and to deliberately build a coherent cluster in the tourism sector. The chapter also provides some limitations and recommendations for future research.

Details

Industry Clusters and Innovation in the Arab World
Type: Book
ISBN: 978-1-80262-872-2

Keywords

Article
Publication date: 15 July 2019

Munshi Afzal, Roger Lawrey and Jhalak Gope

The purpose this study is to investigate national innovation systems (NIS) using Porter’s Diamond model (PDM) by examining the five founding member nations of the Association of…

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Abstract

Purpose

The purpose this study is to investigate national innovation systems (NIS) using Porter’s Diamond model (PDM) by examining the five founding member nations of the Association of South East Asian Nations (ASEAN) namely Indonesia, Malaysia, Philippines, Singapore and Thailand, for the period 2010-2014 (WCY 2015, WDI 2015).

Design/methodology/approach

PDM of competitiveness helps us understanding a nation’s competitive position in world trade. In exploring the empirical relationship between NISs and PDM, a non-parametric approach has been applied using the Malmquist Productivity Index (MPI). This study focused on representing the PDM in a simplified manner and endeavored to understand NIS more rigorously through PDM. The study has used several innovation input-output variables to investigate the efficiency and productivity of the countries concerned. The accuracy of the study has been enhanced by the use of MPI.

Findings

PDM is found efficacious in the practice and strengthening of NIS in the context of these countries’ competitiveness. This study found unchanged Total Factor Productivity (TFP) for Philippines, Singapore and Thailand; that is technological progress is yet to be obtained. Indonesia lags both in technical and technological progress. On the other hand, Malaysia is found to be over-using the existing input-output factors of NIS.

Originality/value

Many authors have attempted to measure competitiveness and NIS separately in the context of ASEAN or other South-East Asian countries. However, as yet, no empirical investigation has been conducted to assess the competitiveness of a nation by applying NIS-based analysis according to PDM.

Details

Competitiveness Review: An International Business Journal , vol. 29 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 16 July 2018

Jimmyn Parc

Once one of the most prominent economies in the world, Japan is currently suffering from economic stagnancy. To revitalize the economy effectively, the core problems of Japan and…

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Abstract

Purpose

Once one of the most prominent economies in the world, Japan is currently suffering from economic stagnancy. To revitalize the economy effectively, the core problems of Japan and its economy need to be first identified. This paper aims to understand accurately what the fundamental reasons are for Japan’s current economic stagnancy.

Design/methodology/approach

The generalized double diamond model, which is an extension of Porter’s original diamond model is used to incorporate internationalization which is very important for Asian countries, notably Japan. Furthermore, its competitiveness is compared with neighboring countries that are in competition in the global market.

Findings

Japan’s current economic problems and its slow recovery are because of a lack of globalization vis-à-vis its counterparts in the region, rather than specific macro-economic factors. Hence, further globalization is crucial toward ensuring a further take-off for the economy.

Practical implications

Macro-economic policies may be important but cannot directly improve a nation’s competitiveness. This paper highlights the importance of globalization and concludes that multinational activities are crucial to enhance a nation’s competitiveness in both domestic and international scope.

Originality/value

This paper adopts the concept of national competitiveness to examine the fundamental economic problems of Japan’s slow recovery and stagnancy more comprehensively. In particular, it compares the competitiveness of Japan with its neighbors which are its economic competitors.

Details

Competitiveness Review: An International Business Journal, vol. 28 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 23 May 2008

Attila Chikán

The purpose of this paper is to provide a framework for connecting macro‐ and micro‐level research on competitiveness.

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Abstract

Purpose

The purpose of this paper is to provide a framework for connecting macro‐ and micro‐level research on competitiveness.

Design/methodology/approach

Based on some major international survey research reports (by the WEF, IMD, OECD, and the EU) and research experience, a gap is described between national and firm level competitiveness studies. A reasoning why filling this gap is discussed and a general research model connecting the two levels by using Porter's diamond model is developed.

Findings

By using appropriate definitions of national and firm competitiveness and the diamond model a meaningful connection of the two levels can be created, which is useful both for connecting recent research results and as a foundation for further research.

Research limitations/implications

Though the model is based on actual research experiences, its real value will become apparent after having it applied in concrete projects. This process is ongoing.

Practical implications

The model is a very useful tool in analysing real world situations, from economic policy issues to strategic management.

Originality/value

The paper is a result of extended research on competitiveness and provides a new model for further analyses in a very important field.

Details

Competitiveness Review: An International Business Journal, vol. 18 no. 1/2
Type: Research Article
ISSN: 1059-5422

Keywords

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