Porter's Diamond in a Mexican Context

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Porter's Diamond Framework in a Mexican Context Author(s): Richard M. Hodgetts Source: MIR: Management International Review, Vol. 33, Extensions of the Porter Diamond Framework (1993), pp. 41-54 Published by: Springer Stable URL: http://www.jstor.org/stable/40228189 . Accessed: 30/05/2013 08:40 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp

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mir SpecialIssue 1993/2, 41-54 pp.

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Richard M. Hodgetts

Porter's Diamond Framework in a Mexican Context

Abstract used as a basis forexamining ■ The Porterdiamondmodelhas been widely This examines waysin which the international competitive strategies. article itself theU.S. economy a doublediamond. to via Mexico is linking clusters petrochemicals automobiles ■ The strategies Mexico'sleading of and the within doublediamondframework. are considered

Key words to ■ A doublediamondmodelis alreadybeingused by Mexicancorporations bothcreateand sustaineconomic progress.

Author
at of is M. Dr. Richard Hodgetts Professor Strategic University, Management FloridaInternational Boca Raton,FL, U.S.A. March1992,revised received April1992. Manuscript

mir vol. 33 • Special Issue • 1993/2

41

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Richard Hodgetts M.

Porter Revisited
Porter's and "diamond"modelis well-known bothresearchers practitioners. to In wayofreprise, modelis based on four and determinants the country-specific twoexternal variables. These include: 1. Factorconditions and cost of personnel; suchas: (a) thequantity, skills, (b) rethe abundance,quality,accessibility, cost of the nation'sphysical and sources;(c) thenation'sstockof knowledge resources; theamountand (d) cost of capitalresources and thatare availableto finance industry: (e) the and usercost of thenation'sinfrastructure. type, quality, 2. Demand conditions such as: (a) the composition demandin the home of market: thesize and growth of thehomedemand;and (c) themechrate (b) anismsthrough whichdomestic and demandis internationalized pullsa nation'sproducts and services abroad. 3. Relatedand supporting industries as: (a) thepresence internationally such of in indusindustries createadvantages downstream that competitive supplier tries and (b) or efficient, through early, rapidaccessto cost-effective inputs; and can related industries which coordinate share internationally competitive in activities thevaluechainwhencompeting thosewhich involve or products thatare complementary. 4. Firmstrategy, firms are and suchas: (a) thewaysin which structure, rivalry seekto attain managedand chooseto compete; thegoals thatcompanies (b) as well as the motivations theiremployees and (c) the of and managers; amountof domestic of and and persistence competitive rivalry thecreation in advantage therespective industry. The twooutsideforces, but also affecting competitiveness a nation, not the of direct are determinants, these: 1. The roleofchanceas causedbydevelopments as: (a) newinventions; such (b) in shifts decisions foreign wars;(d) significant political (c) by governments; in worldfinancial markets exchange or discontinuities inputcosts rates;(e) such as oil shocks;(f)...
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