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Locational and Internal Sources of Firm Competitive Advantage: Applying Porter’s Diamond Model at the Firm Level
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
2011 (English)In: Journal of Strategic Management Education, ISSN 1649-3877, Vol. 7, no 2, p. 1-25Article in journal (Refereed) Published
Abstract [en]

This paper employs Porter’s diamond model to examine the relationships between afirm’s locational environment, its innovation capabilities, and competitive advantage assessed interms of various performance indicators. The study implements a structural equation modelestimated with the partial least squares (PLS) approach and reveals that frequent cooperation spurs innovation and performance but that, in contrast to Porter’s prediction, a strong focus on local demand impedes both. Interestingly, various types of governmental support, as well as the qualityof locational factors, are more important for less innovative companies than they are for moreinnovative ones. We also find that strong local competition is an impediment to firm innovativeness and performance, which is in conflict with Porter’s model.

Place, publisher, year, edition, pages
Senate Hall Academic Publisher , 2011. Vol. 7, no 2, p. 1-25
Keywords [en]
competitive advantage, Porter’s diamond model, firm environment, cooperation, innovativeness, partial least squares
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-17992OAI: oai:DiVA.org:hj-17992DiVA, id: diva2:523722
Available from: 2012-04-25 Created: 2012-04-25 Last updated: 2012-09-12Bibliographically approved

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http://www.senatehall.com/strategic-management?article=426

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Stephan, Andreas

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  • apa
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