How convincing is Porter’s model of national competitive advantage in explaining the characteristics and performance of the business systems of major economies?

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The following is designed to assist you with content by pointing out the major issues, debates, and recurrent errors made.

1. Porter and National Competitive Advantage
i. Introduction. Suggest answer to the question and outline how to validate your suggested answer by clarifying the analytical structure
ii. Key Questions. Simply: this is usually not just a question about Porter. If you are thinking of outlining Porter and little else, please think again. Very briefly

state what the concepts of national competitiveness and the diamond entail, which is naturally connected to the work of Porter. But the question may be asking you to

focus on critique. Therefore, what are the key issues, debates and problems with the ideas about the Competitive Advantage of Nations and the national diamond? The

question may hint that you employ other ideas and a lot of evidence within an analytical structure.
iii. National competitiveness is not a theory but a check list that is a tautology. I.e. if you do certain economic activities well, you will do well economically. Or

German chemical companies succeed because of Germany’s R&D base. But where did this base come from? The operations of the chemicals companies? Do national factors just

appear in the diamond or do we have a theory of how differing factor and demand conditions arise?
iv. Is there a lack of the historical dimension, supplied in part by Late Development Theory? How might this add to missing dimensions in Porter?
v. Why does Porter downplay the role of the state, given the historical importance of the developmental state in industrialisation and improving national

competitiveness?
vi. Are factor and demand conditions purely national in their creation? Note Canada or Hong Kong, plus the role of the international economy and global webs (see

Reich). How do we account for ideas about globalisation? The increasing role and success of MNEs operating in various markets suggest that it is their ability to

operate across borders and their scale and their resources that bring success, not the fact that they may be based in one country or region. MNEs are arguably more

foot-loose and can choose between locations. Why else would governments now have policies to attract inward FDI?
vii. Conclusion

AND YOU CAN STRUCTURE THE ESSAY IN THIS FORMAT IF YOU CAN;
1- Introduction
2- A background to the Diamond Model and its Critics
3- Factor Conditions
3-1- Factor conditions in China (pick an industry such as automobile industry)
3-2- Factor conditions in U.S. (pick an industry such as automobile industry)
3-3- Factor conditions in Germany (pick an industry such as automobile industry)
3-4- Factor conditions in UK (pick an industry such as automobile industry)
3-5- Factor conditions in Japan (pick an industry such as automobile industry)

4- Demand Conditions
4-1- Demand conditions in China (pick an industry such as automobile industry)
4-2- Demand conditions in U.S. (pick an industry such as automobile industry)
4-3- Demand conditions in Germany (pick an industry such as automobile industry)
4-4- Demand conditions in UK (pick an industry such as automobile industry)
4-5- Demand conditions in Japan (pick an industry such as automobile industry)

5- Related and Supporting Industries
5-1- …..
5-2- …..
5-3- ……
5-4- ……
5-5- ……

6- Strategy, Str……
6-1- …..
6-2- …..
6-3- ……
6-4- ……
6-5- ……

7- Diamond Model and Characteristics of National Business System (it can be just in form of a table)
7-1- Characteristics of National Business System in China
7-2- Characteristics of National Business System in US
7-3- Characteristics of National Business System in Germany
7-4- Characteristics of National Business System in UK
7-5- Characteristics of National Business System in Japan

8- Diamond Model and Performance of National Business System (it can be just in form of a table)
8-1- Performance of National Business System in China
8-2- Performance of National Business System in US
8-3- Performance of National Business System in Germany
8-4- Performance of National Business System in UK
8-5- Performance of National Business System in Japan

9- Conclusion

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