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Explaining national competitive advantage for a small European country: A test of three competing models

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  • Brouthers, Keith D.
  • Brouthers, Lance Eliot

Abstract

Porter (1990) proposed that the competitive advantage of nations comes from a set of six factors, termed the Home-Diamond. However, there have been a number of criticisms of this model. It has been suggested that, at least for small countries, competitive advantage may be derived from a combination of "Diamonds" which can exist outside of the home country (Rugman, 1991). This study examines three variations of the Porter Diamond in an effort to determine the competitive advantage of a small European country (The Netherlands). The three models are the Home-Diamond recommended by Porter, the Double-Diamond recommended by Rugman, and the Multiple-Diamond recommended by Dunning and others. The findings tend to indicate that for small countries the Double-Diamond and Multiple-Diamond methods of calculating a country's competitive advantage are superior to Porter's Single-Diamond method.

Suggested Citation

  • Brouthers, Keith D. & Brouthers, Lance Eliot, 1997. "Explaining national competitive advantage for a small European country: A test of three competing models," International Business Review, Elsevier, vol. 6(1), pages 53-70, February.
    • Handle: RePEc:eee:iburev:v:6:y:1997:i:1:p:53-70
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    Citations

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    Cited by:

    1. Brouthers, Keith D. & Brouthers, Lance Eliot & Werner, Steve, 2001. "R&D mode choices in Central and Eastern Europe," Journal of Business Research, Elsevier, vol. 52(1), pages 83-91, April.
    2. Hogenbirk, Annelies & Narula, Rajneesh, 1999. "Globalisation and the Small Economy: The Case of the Netherlands," Research Memorandum 002, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    3. Wang, Shih-Hsu, 2016. "An analytical model for benchmarking the development of national infrastructure items against those in similar countries," International Journal of Critical Infrastructure Protection, Elsevier, vol. 13(C), pages 3-18.
    4. Corinna Doegl, & Dirk Holtbruegge, 2010. "Competitive advantage of German renewable energy firms in Russsia – An empirical study based on Porter’s diamond," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(1), pages 34-58.

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