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Criticism of Porter’s Model of National Competitive Advantage

2024-02-25 18:16:11

The focus of this research is to discuss the criticism of Porter's model of competitive advantage. In order to fully discuss the limits of the Porter country's competitive advantage model, determinants of the Porter diamond model should be explained. Therefore, in the first part of the study, we analyzed the diamond model of Porter and its elements and the remaining studies explained the limits of the Porter diamond model, ie the late development theory, the role of the state, multinational corporations, foreign direct investment, the country Did. Competitiveness and history

In 1990, Michael Porter developed his own book "The Competitive Advantage of the Country", a porter diamond also known as a diamond model. The four decision elements of Porter Diamond must function as a system, not as separate systems. It provides an answer "Why does the country achieve international success in a particular industry" (Porter, 1998: 71). Potter 's diamond framework is generally applicable, but many critics think the model is defective. This article is aimed at discussing various criticisms on the diamond network.

Since Porter published the book "National Competitive Advantage" in 1990, it has attracted attention from other scholars. Porter uses the diamond model as a theoretical framework for analyzing national competitiveness and explains "Why are some social groups, economic institutions and countries progressing and prospering?" I was questioned and criticized. Establishing a diamond model is too abstract and only applies to developed countries that ignore the historical aspect of later development theory. We also pay little attention to the influence of the nation's culture, ignore the role of the state, it is also one of the most influential factors that influence the competitiveness of the nation.

The diamond model of national superiority analysis is the main feature of "national competitive advantage" (1990), not to mention the overall work of Porter. This model consists of four determinants supplemented by two country-specific external variables. They are interdependent and are represented in the form of diamonds, which are said to constitute an element of the competitive advantage of the country. It is criticized by the international community because it is related mainly to the countries and areas that are being analyzed. Some people think that they ignore some of the important factors discussed in the text of this article and in the analysis.