Academic journal article Management International Review

Guest Editors' Introduction

Academic journal article Management International Review

Guest Editors' Introduction

Article excerpt

As has occurred with his earlier works on competitive strategy and competitive advantage, Michael Porter's new book has set the terms of reference for scholarly debate about strategies for international competitiveness. Yet the home-country "diamond" framework in Porter's Competitive Advantage of Nations may not be a generalizable framework. In this special issue eight papers explore the implications of Porter's work for international business strategy, especially in smaller, open, trading economies like Canada, Mexico, New Zealand and Austria. There are two common themes in this set of papers.

First, all of the papers advocate modifications of the Porter diamond framework to take account of either the need for smaller nations to have market access to a triad market, or for other country-specific institutional factors. The paper by Rugman and D'Cruz sets the tone by developing a "double diamond" framework. This demonstrates that in a smaller country, like Canada, managers will design global strategies which are not based on the home-country diamond alone, but ones which jointly consider a triad diamond (the United States in Canada's case) along with the home country diamond. Hodgetts makes a similar argument for a double diamond between Mexico and the United States. Finally, in a brilliant combination of empirical and conceptual research, Cartwright applies the double diamond framework to the Porter study of New Zealand. He demonstrates that Porter is wrong on his own terms; the single diamond home-country framework actually explains New Zealand's least successful industries, while the internationally competitive dairy industry is explained by double diamond characteristics.

The second theme in these papers is Porter's inadequate treatment of the role of foreign direct investment, a point first noted by John Dunning, and reemphasized in his special introduction to this set of papers. The paper by Rugman and Verbeke refutes Porter's assertion in his book that foreign-owned firms do not contribute to a nation's competitiveness. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.