Business and competitiveness : two models compared and microeconomic/management foundations of national or international comparisons
Part of : MIBES Transactions : international journal ; Vol.2, No.1, 2008, pages 144-158
Issue:
Pages:
144-158
Author:
Abstract:
Competition amongst national firms and as extension amongst international firms is determined via a complex interaction of forces. Porter (1985, 1990) has proposed a concrete way to measure competitiveness through its well-known model. Sanidas (2005, 2006) has introduced a more detailed management and organization-based model with microeconomic elements that present a new and more comprehensive way to measure competitiveness performance. A survey of marine industry firms in Australia has provided with the primary data to examine these two models.In more detail Porter’s model is based on five (5) forces: customers’ power, suppliers’ power, substitutes, threat to entry, and degree of rival competition in the industry. In addition, the firm’s strategy is also taken into account. On the other hand Sanidas’s PROBB (process of the black box) model is a detailed 200-variable model that takes into account all key organizational, managerial, and economic variables according to a comprehensive background theory. Thus, the PROBB paradigm includes the processes of strategies, contracts, wisdom, and movements.The primary data of the marine industry survey in Australia are used to calculate 4 independent factors (from SPSS factor analysis) called F1, F2, F3, and F4 which represent the four PROBB. Then regression analysis is used to estimate sales and other Porterian variables as a function of these factors. The results are very good: for example sales can be almost 90% explained either by F3 or a combination of 5 Porterian variables. This is a pioneering study with many positive extensions.The foregoing analysis can be the basis for a competitiveness comparison between national firms or international firms. Currently similar studies are undertaken in other countries in Asia in order to be able to compare the competitiveness level of national firms across international borders. However, it is emphasized that proper international comparisons can only be made once we understand how comparisons inside national borders are made. The present paper offers such an understanding.
Subject (LC):
Keywords:
competitiveness, organizational, quantitative analysis, sales, exports
Notes:
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