Disadvantages of Porter’s framework on national competitive advantage

Other experts also allege that Porter’s framework on national competitive advantage to some degree fails to take into consideration numerous business structures and comparative economic growth (Dicken, 2003). Again, they allege that economic performance is based on national goal and not national competitive advantage. A country’s competitive advantage relies on globalisation, knowledge, skills of the labor force while the main success is the citizens of a country. A nation’s sectors do not exist in a momentous logic, since international corporate systems and not national sectors that override a number of economic activities. Resources are distributed to countries the offer effective production as well as marketing benefits. Case in point, United States productivity reduced in the 80s can be related to remarkable changes in international competitive systems. In the 1980s, about 70% of good consumed in US were competed with hose in other nations using standardised manufacturing structures.

Disadvantages of Porter’s framework on national competitive advantage

Globalised organization can enable other countries to not just learn but also gain from similar sources of national competitiveness (Chandler 1995.). For example, in 60s United States and other western nations were surprised by the fast rate at which Japan development and its ability to control the economy while becoming a successful competitor across the world. The US and other countries began to learn from Japan’s management systems. Nonetheless, Porter (1990) highlights on the relevance of home nation in the present day international economy. He alleges that providing a good environment for successful firms, home nations can be an important function in generating wealth with regards to global competition.

Disadvantages of Porter’s framework on national competitive advantage

Bibliography
Abe, E. and Fitzgerald, R., 1995. Japanese economic success: timing, culture, and organisational capability. Business History, 37(2), pp.1-31.

Best, M., 2001. The new competitive advantage: the renewal of American industry. OUP Catalogue.

Brakman, S., Garretsen, H., Van Marrewijk, C. and Van Witteloostuijn, A., 2006. Nations and       firms in the global economy.
Chandler, A. 1995, ‘Managerial Enterprise and Corporate Capabilities’, in G Jones and C    Harvey, eds, Organizational Capability and Competitive Advantage
Chandler, A., Hagstrom, P. and Solvell, O., 1999. The dynamic firm: the role of technology,    strategy, organization, and regions. Oxford University Press.

Dicken, P., 2003. Global shift: Reshaping the global economic map in the 21st century. Sage.

Fruin, W M 1994. ‘History and Logic of Interdependence’, in The Japanese Enterprise System ,ch.1
Hannah, L., 1991. Scale and scope: towards a European visible hand?. Business History, 33(2), pp.297-309.

Hikino, T. and Amsden, A.H., 1994. Staying behind, stumbling back, sneaking up, soaring ahead: late industrialization in historical perspective. Convergence of productivity: Cross- national studies and historical evidence, pp.285-315.

Hutton, W., 2011. The State We’re In:(Revised Edition). Random House.

Johnson, D. and Turner, C., 2015. European business. Routledge.

Lane, C. and Probert, J., 2009. National capitalisms, global production networks: Fashioning the value chain in the UK, US, and Germany. Oxford University Press on Demand.

Lawrence, P. and Braddon, D. eds., 1999. Strategic issues in European aerospace. Ashgate Pub Limited.

Lewis, M., Fitzgerald, R. and Harvey, C., 1996. The Growth of nations: Culture, competitiveness, and the problem of globalization. Bristol Academic Press.

Madar, D., 2010. Big Steel: technology, trade, and survival in a global market. UBC Press.

Mowery, D.C., 1999. Sources of industrial leadership: studies of seven industries. Cambridge    University Press.
Porter, M. E., 1990. The Competitive Advantage of Nations, Fourth Edition, London, MacMillan       Press.
Porter, M.E., 1990. The competitive advantage of notions. Harvard business review, 68(2),    pp.73-93.

Schmitz, C.J., 1995. The growth of big business in the United States and Western Europe, 1850- 1939 (Vol. 23). Cambridge University Press.

Vogel, S.K., 2006. Japan remodeled: How government and industry are reforming Japanese capitalism (Vol. 224). Ithaca, NY: Cornell University Press.

Whittington, R., Mayer, M. and Curto, F., 1999. Chandlerism in post-war Europe: strategic and structural change in France, Germany and the UK, 1950-1993. Industrial and Corporate Change, 8(3), pp.519-551.

Witt, M.A., 2008. Crossvergence 10 years on: Impact and further potential. Journal of International Business Studies, 39(1), pp.47-52.

Yamamura, K. and Streeck, W. eds., 2003. The end of diversity?: prospects for German and Japanese capitalism. Cornell University Press.