Porter's Diamond Research Articles

Tourism sector competitiveness in Portugal: applying Porter's Diamond

The tourism sector has stood out for its enormous capacity for growth on a global scale and holding a relevant role both as a tool for the competitiveness and as a driver of regional development. This profile stems not only from its multiplier effects but also the opportunities susceptible to identification within the scope of offsetting regional disparities in growth and prosperity. The objective of this research project consists of evaluating the competitiveness of the regional areas and directorates of tourism in Portugal with the methodology applied requiring the input of primary data (a sample of 446 companies), through a questionnaire aimed at companies displaying the activities characteristic of the World Tourism Organisation satellite account. Through the application of Porter’s Diamond Model, we arrived at a conceptual model through recourse to the Partial Least Square – Path Modelling technique with the objective of analysing the relationships unfolding among the determinant variables to competitiveness in the tourism sector. Despite the results returned proving clear, we also verify that encapsulating competitiveness proves no easy task given how Portugal reports regions with simultaneously very varied and very specific characteristics.

An adapted Porter Diamond Model for the evaluation of transnational education host countries

PurposeThe purpose of this paper is to propose an adapted Porter Diamond Model (PDM) that can be used by transnational education (TNE) countries and institutions as an analytical framework for the strategic evaluation of TNE host countries in terms of attractiveness for exporting higher education.Design/methodology/approachThe study uses a literature review to adapt the PDM in the context of TNE host countries. A pilot study of adapted PDM is conducted for China and Malaysia. Available country data are collected via desk study.FindingsThe pilot application of the adapted PDM revealed no major issues or failings. Only some minor difficulties in the identification of appropriate data which can be resolved with the use of alternative metrics. The results from the analysis of the two countries indicate that China and Malaysia are both suitable TNE host countries for expanding existing and developing new activities. This also indicates that the proposed use of the adapted PDM is suitable to effectively evaluate TNE host countries.Practical implicationsThis adapted model can be used by TNE exporting institutions and countries to access the suitability of prospective TNE host countries for education export. Also, it can be used to evaluate the future risks for existing TNE activities. TNE host countries can use the model to strengthen their attractiveness for education import or to plan of becoming education hubs.Originality/valueConsidering the scale and the expected growth of TNE, as well as the lack of strategic analysis tools for TNE; the proposed model provides a valuable practical tool to aid strategic planning at institutional and country level.

The role of government in Porter's Diamond model: comparative cases of Singapore and Thailand

This paper explores the government dimension of Porter's Diamond model. In particular, the study analyses the role of government to support economics of innovation in the cases of Singapore and Thailand. The paper examines the government policies including major tax policies and research and development tax incentives in promoting the high-tech industries in Singapore and Thailand. The analyses of findings offer the policy learning of using tax policy as part of the science and technology policy instruments to foster technological innovations. The study gives insightful lessons which would be useful for readers and policy makers to understand linkages between the government role, innovation politics and major government policies to support innovation system development.

The role of government in Porter's Diamond model: comparative cases of Singapore and Thailand

The role of government in Porter's Diamond model: comparative cases of Singapore and Thailand

Comprehensive competitiveness for auto companies from the USA, Germany, Japan, and Korea: empirical analysis through a diamond model perspective

This study analysed the comprehensive competitiveness for multinational automobile companies (GM, Volkswagen, Toyota, and Hyundai). Based on Porter's (1990) diamond model, we selected the leading papers in the field of management and strategy, then extracted the key factors of comprehensive competitiveness for the automobile companies. According to the results, among factor conditions – the CEO characteristics, human resource management (HRM) system, and technological innovation capability – technological innovation capability positively influenced the comprehensive competitiveness for all four companies. Hyundai (Korea) showed that CEO characteristics also positively affected comprehensive competitiveness. With a moderating effect of government support, HRM system had a significant interaction for both GM (USA) and Toyota (Japan). Technological innovation capability also significantly interacted with government support for Toyota (Japan). In the case of open innovation, technological innovation capability significantly interacted with it for GM (USA), Volkswagen (Germany) and Toyota (Japan). Finally, the CEO characteristics and HRM system significantly interacted with open innovation for GM (USA).

Comprehensive competitiveness for auto companies from the USA, Germany, Japan, and Korea: empirical analysis through a diamond model perspective

This study analysed the comprehensive competitiveness for multinational automobile companies (GM, Volkswagen, Toyota, and Hyundai). Based on Porter's (1990) diamond model, we selected the leading papers in the field of management and strategy, then extracted the key factors of comprehensive competitiveness for the automobile companies. According to the results, among factor conditions – the CEO characteristics, human resource management (HRM) system, and technological innovation capability – technological innovation capability positively influenced the comprehensive competitiveness for all four companies. Hyundai (Korea) showed that CEO characteristics also positively affected comprehensive competitiveness. With a moderating effect of government support, HRM system had a significant interaction for both GM (USA) and Toyota (Japan). Technological innovation capability also significantly interacted with government support for Toyota (Japan). In the case of open innovation, technological innovation capability significantly interacted with it for GM (USA), Volkswagen (Germany) and Toyota (Japan). Finally, the CEO characteristics and HRM system significantly interacted with open innovation for GM (USA).

Design Of Competitiveness Index Software of Food Small Medium Industries (SMI) With Diamond Porter Model Adaptation

Small Medium Enterprises (SME) in food was contributed 13,15% on Gross Domestic Product (GDP) 2013. However, SMEs in food had the problems in the management organization that could affect the product competitiveness. The local SMEs in food is less competitive compared with the similar foreign overseas product. In order to anticipate the negative impact of the broader market, the competitiveness measurement was needed to be conducted on understanding the strength of SMEs in food. Competitive measurement can be done by creating web application to reduce measuring process. This research using Designing methods (system engineering) using diamond porter model as competitiveness measurement method of SME in foods. Web application functioned as SME in foods grading, competitiveness weighing, SME in foods index measurements and City SMEs index measurements. Index value that were yielded grouped into three categories which were high, medium, and low. There was a color indicator on index value display that functioned to classifying competitiveness index value. ID was needed to access this web application, those things intended to guard the safety of data contained in this web application.

COMPETITIVENESS AND THE INCREASING STRATEGY OF COMPETITIVENESS IN TOURISM SECTOR OF TERNATE CITY, NORTH MALUKU PROVINCE

A tourism sector that has high competitiveness can draw a great number of tourists that can result in well-improved regional economy growth, increasing rate of society’s income, and bigger opportunity into the work field. The growth rate of tourist visits in Ternate City from 2011-2015 is increasing, yet its growth percentage is changeable and tends to decrease. This research aimed at: 1) analyzing the competitiveness position of tourism sector of Ternate City against other regions in North Maluku Province; 2) formulating the strategy to increase tourism sector of Ternate City. The data were collected through documentation and interview. The data were obtained from Government Tourism Office, Central Bureau of Statistics, Regional Revenue and Asset Management Office, Development Planning Agency at Regional Level, Environmental Agency and Ministry of Finance of the Republic of Indonesia. The data obtained were analyzed using mix-methods consisting of shift share analysis, indexation, and SWOT. The result of this research showed that the performance of tourism sector in Ternate City from 2011-2015 had positive growth better than that from North Maluku Province. This contributed to better society’s economy and employment absorption in Ternate City. The use of Diamond Porter model helped explain that tourism competitiveness in Ternate City is in the top position surpassing the other regencies/ cities in North Maluku Province. The main factor of its competitiveness is the existence of supporting and related industrial activities such as hotel, inn, man power, restaurant and cafe as well as the number of tourist visits. Meanwhile, the less competitive indicators are the number of tourist spots and the regional strategy. Moreover, the government’s role was still considered lower than those from North Halmahera, Morotai, West Halmahera, Tidore, and Central Halmahera. Based on SWOT analysis, the strategies that can maintain and increase the tourism competitiveness in Ternate City are: 1) utulization of Information technology to attract domestic and foreign tourists; 2) building up the cooperation system with the surrounding regions in managing the integrated tourism sector; 3) cooperating with the local and central government in developing the tourism sector; 4)empowering tour operators in attracting the tourists; 5) improving the quality and the quantity of scientific and cultural tourism; 6) facilitating the tourists to enter the tourist destination area.

The pursuit of original equipment manufacturer strategy: insights from an Asian country

The automotive sector is the major industry of Thailand's economy. This paper discusses the national strategy of Thailand toward the Detroit of Asia. In particular, the study analyses the pursuit of original equipment manufacturer (OEM) strategy in the Thai automotive industry, based on Porter's Diamond Model. A qualitative approach was adopted, using semi‐structured interviews to understand the reasons behind Thailand's adoption of OEM strategy and its decisions in not following other strategic approaches. The findings provide important lessons to other developing economies in terms of adopting the right strategies to improve the national performance and competitiveness. The case of Thailand is clearly evident that the Thai government chooses not to develop its own brand (OBM strategy) but pursue the OEM path to strengthen its automotive industry.

Analysis of the Ukrainian instrument-making industry international competitiveness using porter’s diamond

The article analyzes the ten-year dynamics of the export and import of instrument-making to identify the main trends in the industry. The international competitiveness of Ukraine's instrument-making has been analyzed with the use of M. Porter diamond in measurements of factor conditions (human resources, natural resources, finance, technology and infrastructure), cluster of supporting industries, domestic demand and competition in the domestic market. The method of national preferences in the industry has allowed to give full characteristics of the positive and negative factors that influence the competitiveness of the industry and identify problems and perspectives for the future development. In this study we founded that the industry is import-oriented and has problems in the areas of raw material supply, infrastructure of small towns, related industries and tough competition conditions. At the same time, there are advantages in the form of highly skilled personnel and scientific potential, as well as opportunities for attracting investment funds. The conducted research allowed to give comprehensive assess to the current state of the instrument-making industry, as well as provide a list of practical recommendations aimed to increase the competitiveness of the instrument-making in Ukraine.

Study on Agriculture Competition Mechanism of the Dabie Mountain Area Based on Porter’s Model

Agricultural tourism is the major way to promote agricultural efficiency and thus becomes hot research topic. This paper builds the frame model of sightseeing agriculture competitiveness on the basis of porter's diamond model, and does an empirical analysis of Dabie Mountain area of Luotian using the model. The competitiveness and economic benefits of sightseeing agriculture can be improved through combined actions of factors. As one of the six provinces in central China, Hubei province ranks second among them in terms of GDP. In recent years, although it has rapid economic growth, its economic aggregate rank is going backward, and the characteristic of depression is obvious. Huanggang, being in the Wuhan city 8 + 1 circle of Hubei province, its economic development is closely connected with the overall economic development of Hubei province. Dabie Mountain region is part of the Huanggang region and cannot be ignored. Its long history, beautiful scenery and rich tourism resources make tourism pillar industry in its economic development. According with a transformation from agriculture-led economy to service-industry-led economy, sightseeing agriculture integrates functions of agricultural sightseeing and experiencing, relaxation, vacation, conference, etc. It is usually developed and managed by corporation or government, having clear development subject and preliminary plan. It is usually large-scale with good ecological environment and complete supporting facilities, such as God Peak Villa Resort of Yingshan county and Heaven Village in Luotian county. By combining agriculture and tourism, sightseeing agriculture provides both agriculture income and non-agriculture, making an important form of the development of Daibie Mountain area.

Analisis Keunggulan Kompetitif Perbankan Syariah di Indonesia

Based on the result of research indicate that there is linkage between component of porter diamond model in sharia banking industry in Indonesia. The linkages are supportive and non-supportive. Supportive linkages exist in resource conditions, government role, role of opportunity. While the relationship is not supportive that is on the factors of competition and corporate strategy.

Analysis of Competitiveness of Health Club in Weifang Based on Porter's Diamond Model

Since the development of tertiary industry in the city is more and more important. Sports fitness and entertainment industry has gained the focus of attention, more and more health clubs in large cities are carried out. In order to know the health club’s present development situation and problems in Weifang, we use Porter`s diamond model theory of competitiveness in health club natural resources, demands to studies the structure and business strategy. The results show that health club competitive level is not high; small number of health clubs; a health instructor certified is not optimistic; health trainer has the upward trend in line with the industry. Suggestions: enhance propaganda; increasing support by the government; strength the industry norm; improve the personal system, introduction of high-level coaches.

A proposal for the application of multicriteria analysis to rank countries according to innovation using the indicators provided by the World Intellectual Property Organization

This article aims to analyze the ranking of Latin American and Caribbean countries in the ranking proposed by the World Intellectual Property Organization in relation to Global Innovation Index using the multicriteria approach as an instrument. The methodology used is the Technique of Ordination by Similarity with the Ideal Solution, in order to support the reduction of subjectivity to the decision making process of the global competitiveness models. It is based on literature research, through a review on the themes of innovation works, marking the condition of the local productive networks, focusing on the approach of the Porter's Diamond proposal. The results of the application of the technique bring a new perspective to institutional methodology and allows to suggest new factors indicative that the countries of Latin America and the Caribbean need to develop their networks and creative policies in such a way that the promotion of technological innovation occurs quickly, so that innovation is transferred to society.

STUDI PENGEMBANGAN EKONOMI LOKAL TERKAIT INTERAKSI DESA-KOTA

Study of Local Economic Development (LED) in Banjar district is determined from the determination Spatial Plans (RTRW) Banjar district regarding domestic Airguci handicraft industry which is in East Martapura Sub-district, precisely in the Mekar Village and the Melayu Ulu Village. This study starts from the initial assumption that there is no balance in the construction planning for urban and rural areas. The purpose of this study are: first, to develop the local economy Airguci craft based on the potential problems, opportunities and threats in order to improve the economy of rural communities, both improving the relationship of mutual support (interaction) between villages and cities in an effort to reduce the inequality between regions. The research method uses a combination of approaches, methods of qualitative and quantitative methods. Source of data derived from primary and secondary survey. Data collection techniques performed through questionnaires, interviews, observation and documentation. Data were analyzed using analysis of Diamond Porter, SWOT analysis, and analysis of the gravity of the rural-urban interactions. The results showed that the implementation of LED in the Airguci centers undeveloped and still is as a sideline activity. People especially women are actively involved in this business activity. But unfortunately, see the existing condition in the Airguci centers are not supported by good infrastructure such as roads and institutions that have not been running for the establishment of a business group that Airguci craft business activities can continue to survive. So many women who have been married, moved to the outside of the village. There are still many who choose to work in the city. Factors to be driving at the same obstacle in the implementation of the LED Airguci centers include: human resources, capital, marketing and institutional. The economic impact of the implementation of the LED in the Airguci centers, namely the local communities to help increase revenue and reduction in unemployment has not yet arrived when the harvest season.

An analysis of competitive situation medical tourism industry: a case study in northwest Iran

Background: Medical tourism is a relatively new concept where patients travel to a foreign destination to obtain quality medical treatments which much better or comparable and also available at a significantly lower cost. Though, a number of literature available with regard to the tourism industry and the competitiveness of the destination for medical tourists are hardly focused specifically in Northwest Iran.Purpose: The aim of this study is to determine the competitive status of East Azerbaijan province medical tourism industry.Materials and Method: It was a qualitative study which conducted in-depth interviews with 15 key stakeholders of the tourism industry in East Azerbaijan Province (North-West of Iran). Purposive sampling technique was used and the data analyzed by using framework analysis based on Porter's diamond model.Results: In the factory conditions, there are 8 sub-themes such as political and ideological attitudes, similarities of language, culture, restrictions on communication skills, and tourist attractions. In the demand conditions, there is fame of the physicians and the waiting time for receiving medical treatment. In the strategy for structure and rivalry, 7 sub-themes are included such as lack of hospitals approved by JCI, affordability of medical and tourism service prices, inefficient advertising system, and the strengthening medical tourism infrastructure in neighboring countries. Others regarding with supporting industries are poor tourism infrastructure, inadequate support of private sector, poor transfer of medical tourists, and Visa facilitation services.Conclusion: Long-term planning and involvement of private sector in strengthening the tourism infrastructure should be put at agenda in terms of making province’s medical tourism policy.

DETERMINANT FACTORS TOWARDS THE COMPETITIVENESS OF PINEAPPLE AGROINDUSTRY IN PANGKALPINANG

This study aimed to analyze the determinant competitiveness factors of agro-industry Pineapple in Pangkalpinang and to analyze the relationship between components in these factors in favor of agro-industry cluster growth pineapple. This study was conducted in September 2016 up to March 2017 in Pangkalpinang. The data are obtained from a survey. The sample size used in this study are 47 respondents. The analytical method used is descriptive analysis, Delphi techniques, and the porter's diamond model analysis. The results of this study found that the determinant factors in the competitiveness of pineapple agro-industry in Pangkalpinang Municipality are the role of government factor and the opportunity factor. While the factors that have average influence are strategy, structure and competition factor, demand factors, and factors related and supported industries. The relationship among the factors is clear that labor and raw material are closely related to internal strength and the major components for growing the pineapple agroindustry cluster are demand factor, strategy, structure in the industry and the rivalry.

Applying Porter's Diamond Model to Design Teaching Strategies

Applying Porter's Diamond Model to Design Teaching Strategies

Comparative analyses of competitive advantage using Porter diamond model (the case of MSMEs in Himachal Pradesh)

PurposeThe purpose of this paper is to measure and analyze the competitive advantage of micro, small and medium enterprises (MSMEs) based upon the Porter’s diamond framework. The major objective is to contribute toward better understanding of various determinants of the diamond model in context within Indian MSMEs.Design/methodology/approachExtent review of the literature has been done to identify various critical factors contributing to developing a competitive advantage. Exploratory factor analysis and internal consistency tests were performed to verify scales validity and reliability of measuring instrument (questionnaire). In research design, a case study approach has been used, in which MSMEs operating in the pharmaceutical, electrical and electronics, automobile, food and textile sectors were considered.FindingsStudy findings indicate that the pharmaceutical sector is more competitive followed by food (112.491) as revealed by the high value of surface area i.e. 150.931. The competitiveness among MSME sectors is mostly affected by demand conditions followed by firm strategy, structure and rivalry. Moreover, the score of diamond axes indicates significant difference with respect to determinants. For instance, in the textile sector, the determinants such as factor conditions and related and supporting industries scored low, for example, 4.710 and 4.280, respectively, which indicates it needs to be strengthened as this sector stands at last position with minimum surface area, for example, 67.398.Research limitations/implicationsOwing to the time and resource constraints, this study was conducted in MSMEs situated in the state of Himachal Pradesh, India, and thus generalizations of results are rather limited.Practical implicationsThis study is one of the original being undertaken by authors which helps to underline the importance of various determinants which may help the MSME units to improve competitiveness by implementing effective competitive strategies. The study could be extended to other regions of the country.Originality/valueThis study is a result of extended research on competitiveness and provides an instrument to measure firm ability to be competitive. CEO’s, managers and policy makers from industries as well as government will be able to use this to evaluate their competitive positioning and identify key problem areas which required improvements.

Faktor-Faktor yang Memengaruhi Daya Saing Industri Unggas Ayam Kampung (Studi Kasus PT Dwi dan Rachmat Farm, Bogor)

The poultry industry in Indonesia often experience ups and downs the last few years. The volatility of broiler effort to shocks opportunities to develop local businesses like poultry chicken that is currently growing in popularity compared with other poultry meat. Chicken poultry industry is highly prospective, given the need for animal protein derived from poultry meat is increasing and is supported by the rapid development of the culinary industry today. The purpose of this study to identify the factors affecting the competitiveness of the poultry industry chicken. Descriptive research method, processed and analyzed using the Porter Diamond Model. The results showed the factors that influence competitiveness the poultry industry kampong chicken which has the highest attribute values, namely: human resources, the number of buyers and buyer growth rate, breeding, industrial replacement products, roadmap and business plan development of chicken, a conducive business climate. Attributes of the lowest infrastructure, capital resources, integration of industry suppliers and facilitation of exports.