Alan M. Rugman and Alain Verbeke1993, [35(4)] How to Operationalize Porter’s Diamond of International Competitiveness; Thunderbird International Business Review (ISSN 1096-4762) Wiley United States Charles W.L. Hill 2008, International Business; McGraw Hill United States ISBN 0073381349 John D. Daniels, Lee H. Radebaugh and Daniel P. Sullivan 2006, International Business: Environments and Operations; Prentice Hall United States ISBN 0131869426 Michael E. Porter1990, Competitive Advantages of Nations; Free Press United States ISBN 0684841479 Robert M. Grant 1991 [12(7)] Strategic Management Journal; Porter’s Competitive Advantages of Nations: an assessment (ISSN 0143-2095) Wiley United States
Porter’s Diamond of competitive advantage model of nations consists of four main attributes that shape the national environment in which local, connected firms compete:
1. FACTOR CONDITIONS
The nation’s relative position in vital industrial production factors such as skilled labor or infrastructure, are important determinants of national competiveness. Both the level of individual factors and the overall composition of the resource mix must be considered. Factors can be country specific or industry specific. For example, Japan’s large pool of engineers -- reflected by a much higher number of engineering graduates per capita than almost any other nation -- has been vital to Japan’s success in many manufacturing industries.
2. DEMAND CONDITIONS
The nature of home demand for an industry’s products and services requires considering both the quantity and quality of the demand. For example, Japan’s sophisticated and knowledgeable buyers of cameras helped stimulate the Japanese camera industry to improve product quality and to launch new, innovative models.
3. RELATED AND SUPPORTING INDUSTRIES
The presence or absence in the nation of internationally competitive supplier and related industries is a key factor. Until the mid-1980s for example,...