Porter's Diamond Research Articles

A INTERNACIONALIZAÇÃO DA JBS E UMA DISCUSSÃO SOBRE O DIAMANTE DE PORTER <br><strong>DOI:10.7444/fsrj.v2i1.48</strong>

Este artigo tem como objetivo discutir à luz das teorias de internacionalização e competitividade, o posicionamento de uma empresa genuinamente brasileira exportadora de carnes e alimentos que se tornou um grande player global nessa indústria a JBS – Friboi que possui hoje 140 unidades de produção no mundo e mais de 120 mil colaboradores. Esta empresa que se internacionalizou de forma muito veloz nos últimos anos, se tornou líder global na produção de carne bovina, segundo maior produtor de carne de frango e terceiro maior produtor de carne suína nos EUA (JBS, 2010). O caso da JBS é emblemático quando analisado sob o conceito do diamante de Porter aplicado ao Brasil. As vantagens advindas dos recursos naturais no Brasil ajudaram a criar o expertise da JBS, e das demais empresas do setor, culminando na sua liderança neste mercado e criando escala para concorrer no exterior. A empresa ganhou escala e competitividade com a vantagem da produção pecuária em recursos naturais (condição de fatores), mas se supõe que para a manutenção da sua posição de liderança é necessária uma estratégia pautada em inovação que transcenda apenas o aumento da escala e excelência operacional.

PROJEÇÃO DA PENETRAÇÃO DO HOME BROKER NO MERCADO DE CAPITAIS BRASILEIRO ATRAVÉS DOS MODELOS LINEAR, FISHER-PRY E GOMPERTZ <br><strong>DOI:10.7444/fsrj.v2i1.46</strong>

Neste trabalho calcula-se a projeção da penetração da ferramenta home broker no atendimento de clientes pessoas físicas no mercado acionário brasileiro até 2012. Foram realizadas estimações com três diferentes modelos: Linear, Fisher-Pry e Gompertz. As três projeções foram comparadas entre si tanto pelos coeficientes de determinação das estimações, quanto pelos desvios absolutos e quadráticos produzidos. Como o modelo Fisher-Pry carrega a característica de modelar a dinâmica tecnológica como função do percentual de mercado a ser conquistado e também do mercado já conquistado, diferentemente do modelo de Gompertz, cuja penetração tecnológica é influenciada exclusivamente pelo mercado a ser conquistado, e o modelo linear pode ser visto como um caso simplista entre as três alternativas, os resultados indicaram, como esperado dadas as especificidades do caso estudado, que a projeção pelo modelo Fisher-Pry é a mais aderente aos dados, indicando que no final de 2012 cerca de 84% das pessoas físicas que negociam em bolsa devem executar suas ordens através do Home Broker. Apesar da robustez dos resultados estatísticos, ressalta-se que as projeções realizadas podem estar subestimadas, uma vez que os modelos empregados não contemplam a possibilidade de outras inovações no mercado, como o recente desenvolvimento do Direct Market Access (DMA).

PROJEÇÃO DA PENETRAÇÃO DO HOME BROKER NO MERCADO DE CAPITAIS BRASILEIRO ATRAVÉS DOS MODELOS LINEAR, FISHER-PRY E GOMPERTZ

This paper aims to discuss the theories of internationalization and competitiveness, the positioning of a Brazilian company from agribusiness industry, exporting meat and food that has become a major global player in this industry JBS - Friboi. This company has been internationalized very fast in recent years and become a global leader in beef production, the second to the production of chicken meat and third largest producer of pork in the U.S. (JBS, 2010). The case is emblematic of JBS when analyzed under the concept of Porter's diamond applied to Brazil. This company gained scale and competitiveness with the access to natural resources of prodution (condition factor), but now it is necessary for maintenance its leading position, it requires a strategy grounded in innovation beyond just scale and operational excellence).

A INTERNACIONALIZAÇÃO DA JBS E UMA DISCUSSÃO SOBRE O DIAMANTE DE PORTER

This paper aims to discuss the theories of internationalization and competitiveness, the positioning of a Brazilian company from agribusiness industry, exporting meat and food that has become a major global player in this industry JBS - Friboi. This company has been internationalized very fast in recent years and become a global leader in beef production, the second to the production of chicken meat and third largest producer of pork in the U.S. (JBS, 2010). The case is emblematic of JBS when analyzed under the concept of Porter's diamond applied to Brazil. This company gained scale and competitiveness with the access to natural resources of prodution (condition factor), but now it is necessary for maintenance its leading position, it requires a strategy grounded in innovation beyond just scale and operational excellence).

Empirical research on competitiveness factors

PurposeThe purpose of this paper is to develop a model to analyze the interactions among the competitiveness factors of the real estate industry on the basis of Porter's Diamond Model. The model provides insights into the relationship between these factors in the context of the Beijing and Tianjin real estate industries.Design/methodology/approachBased on Porter's Diamond Model, this paper establishes the competitiveness factors model and divides the factors into four key categories. (i.e. productivity element, demand constraint, the strategy or structure of relevant and supportive industry and corporation, and horizontal competition). After relevant indices are picked up in each category, the paper utilizes structural equation modeling to analyze the contribution of each factor on competitiveness of real estate industry. Data are collected from Beijing and Tianjin in China and the model is practiced in the context of the real estate industry of the two cities.FindingsSupported by empirical evidence, this study finds out that related industries have the most significant influence on competitiveness of real estate industry and the second important is demand factors. Based on these, four pieces of suggestion are given to improve the competitiveness of real estate industry combining with the condition of Beijing and Tianjin in this paper.Originality/valueThis research builds a conceptual model based on Porter's Diamond model to provide a much more comprehensive understanding of the interactions between competitiveness factors of real estate industry, and introduces structural equation modeling to quantitatively analyze the contribution of each factor to competitiveness.

Health tourism destination in Thailand: a case study of Raksawarin Hot Spring

This research study is focused on the health tourism at Raksawarin Hot Spring in Thailand. The study aims at analysing demographic factors, tourism services and expectation of stakeholders of this tourism centre. The discussion in the paper argues that an effective tourism services combined with government initiative towards management would not only help attracting tourists but also nurture the factors required for developing a sustainable place brand. The SWOT analysis of in reference to the hot spring tourism as a potential touristic destination has been conducted in the paper. Analyses of variables are carried out in the study using Porter's diamond model and tourism cluster strength and the industry growth potential are evaluated. The study revealed that health tourism cluster of Raksawarin Hot Spring is 'new wave' cluster as it is at the initial stage of development with industry potential.

Investigation of leather industry competitiveness in Iran

PurposeThe purpose of this paper is to investigate the competitiveness of the Iranian leather value chain (LVC) and compare that with those of nine other countries including China, Pakistan, Turkey, Republic of Korea, Indonesia, Spain, Italy, Brazil and the USA. The results presented in the paper seek to assist in assessing the competitive performance of the LVC in Iran. In addition, based on Porter's diamond of competitive advantages, the aim is to provide recommendations to improve the competitive performance of the industry.Design/methodology/approachAn economic method, i.e. revealed comparative advantage (RCA), as a well‐known approach, is used to investigate the competitive performance of LVC in Iran. The LVC products analyzed in this research include hide, skin, leather manufacture, trunks and cases, and footwear. In addition, in order to investigate the factors which affect the low competitive performance, a questionnaire based on Porter's diamond of competitive advantages was designed and completed by researchers and practitioners working in the field of leather industry. Finally the reasons for low competitive performance of the industry are discussed.FindingsThe results reveal that the competitiveness of the Iranian LVC is low, compared with those of some other countries. China and Italy have superior comparative advantages in the period studied. The results also indicate that except one product, Iran has no comparative advantage in LVC industry. In addition, Iran has mainly focused on the upstream sector of LVC whereas China and Italy compete more in the downstream sector which offers more value added products. The results also reveal that among the elements studied, specialized factors, availability of capital, quality of demand and stability of macroeconomics highly influence the competitive performance of LVC in Iran. This is followed by subsequent recommendations on how best to improve the competitive performance of the industry.Originality/valueThe results of the investigation presented in this paper give an insight into the competitiveness of the LVC in Iran compared with nine other countries which play an important role in this industry in the world. The results also confirm that RCA can be used as an effective approach to assess the competitive performance of industries. Furthermore, reommendations provided in this paper assist in improving the competitive performance of the industry. In general, the findings should prove useful for both researchers and practitioners.

Developing a conceptual framework for assessing competitiveness of India's agrifood chain

PurposeThe purpose of this paper is to present a conceptual framework and set of propositions to analyze competitiveness of India's agrifood chain. Nine components constitute the framework. These are identified on the basis of theoretical studies and expert consultations. Each component leads to at least one proposition.Design/methodology/approachThe framework is dependent on two major streams of management – value chain analysis (VCA) and strategic competitiveness. Porter's diamond at the industry level and Momaya's asset‐process‐performance (APP) model at the firm level provide the base for competitiveness discussions.FindingsThe framework comprises of “human” and “non‐human” components. They are more like members of a network where action of each has an impact on the other. By examining the roles of human components like national government, producers, processors, etc. and non‐human components like food quality, regulatory scenario, etc. side‐by‐side, this study breaks new grounds in exploring the synergy of VCA and competitiveness management.Research limitations/implicationsJournal papers based on Indian food industry's competitiveness or supply chain are very limited. There is also a dearth of literature on India's agrifood sector. This has reduced the scope for published references from India.Practical implicationsThe paper can serve as a reference point for researchers/students and other stakeholders interested in Indian food and retail industry. The framework has implications for developing countries like India that are exploring opportunities in global retail diffusions. It is also of use to researchers from developing economies where the role of “national government” can be significant in the development of an industry. The framework is built as a flexible and adaptable tool, which can suit other industry sectors with minor modifications.Originality/valueThe paper has attempted to create a common ground where the two theories of VCA and competitiveness are able to meet. An empirical validation of the framework can encourage more future research on this topic. This paper can also be used by researchers as a reference point for studies on Indian agrifood sector. The proposed framework can be used as an analytical tool by researchers to study similar industries from developing economies like textiles, leather, etc. that are unorganized.

Does one size fit all? A dual double diamond approach to country-specific advantages

In this era of globalization, an accurate analysis of country-specific advantages (CSAs) is imperative for multinational corporations (MNCs) to thrive in global competition. Integrating previous extensions of Porter's diamond model, this paper introduces the ‘dual double diamond’ (DDD) model as a new approach to analyze CSAs of countries with various characteristics, and empirically tests the explanatory power of each model. The results show that the generalized double diamond (GDD) and nine-factor (NF) models have better explanatory power than Porter's diamond when assessing CSAs of countries with high international connectivity and high human-factor dependency, respectively, and that the DDD model is more comprehensive than the GDD and NF models in explaining CSAs of countries with heterogeneous attributes. This paper also discusses the implications of the DDD model for MNCs investing, or planning to invest, in Asian countries.

An analytical approach to assessing the competitiveness in the textile industry

PurposeThe purpose of this paper is to measure the competitive performance of four major Iranian synthetic fiber‐manufacturing companies, as one of the main sectors in the textile industry, using an analytical approach. The results presented assist in evaluating the competitive performance of a company, while developing recommendations for improving competitive strategy of the firms.Design/methodology/approachThe proposed approach is based on Porter's diamond of competitive advantage (including four main determinants, namely factor conditions, demand, related and supporting industries and firm strategy and rivalry, plus government as an external factor). This approach is based on five determinants, each one consisting of two to six elements, with each element including a number of variables, i.e. 55 variables in total, which were confirmed by the interviewees as important factors affecting the competitiveness of a firm. Accordingly, the results obtained from the interviews confirmed the validity of the proposed approach to assess the competitiveness of a company. In addition the proposed approach is applied to assessing the competitive performance of four companies which manufacture synthetic fibers, in terms of each determinant as well as the overall competitive performance of each company. The data used in this research were obtained from both face‐to‐face interviews and a questionnaire completed by the key managers and engineers at the companies studied. The validity of the results obtained by means of the proposed approach was also correlated by comparing the results with the Export Value and Relative Comparative Advantage index of the synthetic fiber industry in Iran.FindingsThe results reveal that the competitiveness of the four companies is significantly low. Furthermore, of the five determinants, factor condition yielded the highest performance for the firms. The paper also identifies some of the shortcomings affecting the local manufacturers, and provides recommendations on how to improve the competitive performance of the firms.Practical implicationsThe proposed approach provides a good basis for assessing the competitive performance of the companies. This can also help both researchers and practitioners in deciding how best to improve the competitive performance of a company.Originality/valueThe research proposes an analytical method for measuring the competitiveness of companies. This also helps in developing recommendations for improving competitive strategy. In addition, the method evaluates the competitive performance of four companies which play an important role in the Iranian synthetic fiber industry. Recommendations are also made on how to improve the performance. The findings should prove useful for both researchers and practitioners.

Pengukuran Indeks Daya Saing Industri Kecil Menengah (IKM) di Jawa Tengah

This research aims to analyze the small and medium industries competitiveness in the manufacturing sector in Central Java by using the framework of Porter's diamond model. Measurement of the competitiveness index is using the value established in the industry rankings, the company, dimensions and elements. Based on the results of the index values calculated, small and medium industries in the manufacturing sector in Central Java are highly competitive both for each dimension and overall dimensions. According to the results of independent analysis of samples t test found no significant difference between the competitiveness of small industries with medium industries. Small and medium industries in the manufacturing sector in Central Java has also contributed to the regional economy, especially in absorbing labor, establishment of regional gross domestic product (GDP), providing the output value, non-oil exports, and the absorption of investment value. Keyword: small and medium industries, competitiveness index, manufacturing sector

Internationalization of Chinese and Korean firms

AbstractThis article compares and contrasts the growth of Chinese and Korean multinational enterprises (MNEs). The article identifies the similarities and differences between Chinese and Korean MNEs in terms of motivations for internationalization, expansion strategies, and paths. The goal of this article is to contribute to the literature by shifting focus on host‐country conditions to home‐country conditions in explaining the drivers for firms' internationalization. We conclude that firms are motivated to expand abroad when faced with domestic competitive disadvantages resulting from absence or deficiency of one or more of Porter's Diamond attributes in their domestic market. Implications for further studies are also explored. © 2009 Wiley Periodicals, Inc.

Portland's Green Building Cluster

This study offers an initial exploration of the green building cluster in Portland, Oregon. Specific objectives include assessing how the factors identified in Michael Porter's “diamond” support the green building industry cluster in this region, describing the trends in terms of growth and expansion in the sector, and, where possible, providing quantitative data to document the impact of this industry cluster. The authors suggest that Portland has a robust and competitive green building cluster that is supported by many of the elements described in Porter's diamond—local and export demand, a critical mass of leading-edge firms, strong supporting institutions, qualified employees, and a robust supply chain. The study also identifies areas in need of additional support to realize the full potential for economic development in this cluster and offers an approach to mapping the green building cluster that may also inform analysis of other emerging sustainability clusters.

Seven perspectives on regional clusters and the case of Grand Rapids office furniture city

The globalization of the value chain puts older regional clusters characterized by local, vertical value chains across multiple connected sectors, at a significant risk. Firms operating within the local regional clusters need to develop new generic strategies and new bases of competitive advantage in response to the growing outsourcing within the regional cluster. We review Krugman's geography, Porter's diamond, and European regional innovation system perspectives, as well as three extensions of those perspectives, to identify relevant generic strategies and bases of competitive advantage in regional clusters. A seventh transnational value chain perspective is also discussed. Then, we contextually analyze the historical furniture cluster of the Greater Grand Rapids region, Michigan, USA, and highlight the shifts in the generic strategies and the bases of competitive advantage in response to globalization. The findings have critical implications for the theory of regional clustering, and for the policy decisions.

National and firm competitiveness: a general research model

PurposeThe purpose of this paper is to provide a framework for connecting macro‐ and micro‐level research on competitiveness.Design/methodology/approachBased on some major international survey research reports (by the WEF, IMD, OECD, and the EU) and research experience, a gap is described between national and firm level competitiveness studies. A reasoning why filling this gap is discussed and a general research model connecting the two levels by using Porter's diamond model is developed.FindingsBy using appropriate definitions of national and firm competitiveness and the diamond model a meaningful connection of the two levels can be created, which is useful both for connecting recent research results and as a foundation for further research.Research limitations/implicationsThough the model is based on actual research experiences, its real value will become apparent after having it applied in concrete projects. This process is ongoing.Practical implicationsThe model is a very useful tool in analysing real world situations, from economic policy issues to strategic management.Originality/valueThe paper is a result of extended research on competitiveness and provides a new model for further analyses in a very important field.

Conditions for Hosting Mega-Sporting Events in Asia: Comparing Japan and India

This study examines the impact of mega-sporting events on business and economic growth by using Porter's competitive advantage diamond framework. Specifically, it comparatively analyses the differential impacts of mega-sporting events in two countries, viz. Japan and India — the main hosts, respectively, of the FIFA World Cup 2002 and the ICC Cricket World Cup 1996. The analysis led to the expectation that there are significant differences in the nature and direction of the impact such mega-sporting events have on the society and economy of these two nations. This qualitative analysis led to the formulation of a proposition anticipating differences in ex ante vs ex post impact between the two countries. The differential impacts of mega-sporting events on social and economic development, growth and infrastructure are explored. The study extends the comparison of these two nations and seeks to generalize the differences across developed vs emerging markets of Asia. Based on emerging markets literature, managerial implications are developed from the perspectives of the different ‘players’ in question in the respective markets.

Competitiveness of Polish economy at the beginning of the 21st century: implications for economic policy

In this paper, the author analyses competitiveness of Polish economy since year 1990. After discussing the meaning of competitiveness, he uses Porter's Diamond to critically analyse various dimensions of economic competitiveness of Poland. Finally, he suggests some changes in economic policy, in order to improve international competitiveness of Polish economy.

Localized advantage in a global economy: The case of Bangalore

AbstractThis article examines how and why firms in Bangalore, a city in southern India, have achieved success in the global software industry. We use Porter's “diamond framework” to analyze information obtained from secondary sources and interviews with engineers, managers, and top executives from software firms and officials involved in Bangalore's development. While we found some aspects of the case conform to Porter's framework, many other elements tend to diverge from the model. Thus, the article contributes to the Porter's diamond model literature by extending its application to assessing the development of successful regions in knowledge‐based industries in developing economies. The discussion in the article would be of value to officials interested in creating such successful regions, as well as international business executives interested in the opportunities afforded by locating in these regions. © 2007 Wiley Periodicals, Inc.

Quality management and environment: exploring the connections

PurposeThis paper concerns regional development of quality management. The purpose is to identify and describe environmental factors that governments can influence in order to facilitate the development of quality management in regions and nations.Design/methodology/approachThe paper is a survey directed at the quality managers of industrial companies in the region of Götaland, Sweden. The data have been analysed using factor analysis.FindingsThe results in this paper indicate that human issues are most important for achieving regional quality development whereas physical infrastructure is less important.Research limitations/implicationsThe paper has been based on Porter's diamond model. The implications of the results are that the human aspects of this framework are most important, particularly the attribute “firm strategy, structure and rivalry”. A tentative quality diamond model, which can provide a basis for further research, is proposed.Practical implicationsRegional and national leaders should focus on human aspects such as education, training and leadership in order to stimulate successful quality management. The proposed quality diamond model might be an aid in their effort to create an environment that is conducive for quality management.Originality/valueThe paper provides academia with added knowledge of the importance of different environmental factors for successful quality management. In addition, it provides valuable directions for regional and national leaders in their quest for higher quality.

Ireland's Foreign Direct Investment Competitive Advantage and Japanese Outward Foreign Direct Investment

This article addresses Ireland's record in attracting foreign direct investment (FDI). FDI has been identified as one of the key factors that has spurred the growth of the Celtic Tiger. An adaptation of Porter's Diamond is offered to explain the determinants of Ireland's competitive advantage in attracting FDI. The overall trends in FDI inflows to Ireland are considered. The study then focuses on Japanese FDI into Europe and Ireland in particular. The pattern of Japanese FDI flows into Ireland is analysed in the context of Ireland's determinants of FDI competitive advantage. Future considerations around Ireland's model of competitive advantage are addressed.