In certain cases Porter's Diamond of Competitive Advantage may not be an appropriate framework for the analysis of a nation's sources of competitive advantage.
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Title: In certain cases Porter's Diamond of Competitive Advantage may not be an appropriate framework for the analysis of a nation's sources of competitive advantage.

Essay Details:

Subject: Business
Author: Ellen W
Date: June 11, 2015
Level: University
Grade: A
Length: 6 / 1562

Essay text:

However, because it is fundamentally a home-based model of international competitiveness, the diamond theory is criticized by many international business scholars. Dunning , and Rugman ¬, ¬¬ point out that the influence on competitiveness of two-way foreign direct investment (FDI) and foreign government influence and interference on trade and investment have been neglected. Rugman and Collinson have also evaluated the model and identified eight areas for comment. This essay will look at Rugman and Collinson's criticisms of Porter's model, focussing on three major areas: the role of FDI, foreign government influence and Multi National Enterprises (MNEs), before looking at developments to Porters diamond with country specific examples...

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