Large firms to the national diamond and to competitive industrial

How important are large firms to the national diamond and to competitive industrial clusters, and how good are these firms and their management?

Previously, Japan has had a strong supplier system, labor costs, extremely demanding clients, which allowed it to obtain competitive advantage than other countries. Nonetheless, Porter (1990) in assessing competitive advantage overlooks the importance of history, late development models, managerial enterprise, and globalisation.  Therefore, he inadequately defines the issue and offers deficient solutions (Johnson &Turner 2015).

This demonstrates that there is the need for other strategies to define different business structures and comparative economic productivity of countries. For instance, Gerschenkron (1962) model that concentrates on late industrialisation can be a technique for explaining a country’s economic performance (Mowery 1999). The model indicates that Japan transitioned from rapid development in the 1951-90, which was essential to totally globalise.

How important are large firms to the national diamond and to competitive industrial clusters, and how good are these firms and their management?

The economy of Japan increased following the decline of United States in the 70s, an era Japanese firms replaced American main sectors. Production as well as management of operations allowed the Japanese organisations to make Japan competitive. This was realised through production structures and making products at low costs. Conversely, they offered quality goods to consumers at low costs. In the 60s, US firm’s productivity was at 2.7% and 20 years later reduced to -0.30%.
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How important are large firms to the national diamond and to competitive industrial clusters, and how good are these firms and their management?

By admin in Essays on November 24, 2016