Analysis of Competitive Advantage of the Basic Industries in Palestine Based on the Porter’s Diamond Model

Orobah Ali Barghouthi

doi:10.46281/ijmri.v1i1.100

Orobah Ali Barghouthi Faculty of Business and Economics, Department of Banking & Finance, Alquds University, Abu Dis, Palestine

DOI: https://doi.org/10.46281/ijmri.v1i1.100

Keywords: Porter’s Diamond Model, Palestinian Economy, Competitive Advantage.

Abstract

Michael Porter offered a model that allows examining why some states are more competitive and why some industries within states are more competitive than others are. In this way, Porter’s diamond model of national competitiveness was detected as a model with which to assess the sources of competitive advantages of an industry in a particular country and it can help realize the competitive status of a nation in global competition. This model consists of four national determinants of competitive advantage: factor conditions, demand conditions, related and supporting industries, and firm’s strategy, structure and rivalry. The Porter’s theory is that these factors interact with each other to form conditions where innovation and competitiveness occurs.As the purpose of this study is to apply porter’s theory about national competitiveness on the Palestinian economy, the well known model in the literature developed by Porter was used. In this study, the competitiveness of the main sectors that have an important place in Palestine was investigated by using Porter’s Diamond model. To achieve the aim of the research both primary and secondary data collection techniques were used. The collected data was analyzed and evaluated according to the diamond model. So, we grabbed at an opportunity to evaluate the current situation according to the factors in the model and to detect areas that provide facilities to improve the competitiveness of the sectors.

References

Barney, J., (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), pp. 99-120.
Davies, H. & Ellis, P., 2000. Porter's 'Competitive Advantage of Nations': Time for the Real Judgment?. Journal of Management Studies, 37(8), pp. 1189-1213.
İsmail B. & İnci F.D.(2012). Competetiveness of the industries based on the porter’s diamond model:an empirical study [pdf] available at [Accessed 24 August 2013]

Grundy, T., (2006). Rethinking and reinventing Michael Porter's five forces model. Strategic Change, 15(August), pp. 213-229.
Hall, E. T., (1976). Beyond Culture. 1st ed. s.l.:Anchor Books.
Hebgie, D., (1979). Subculture: The Meaning of Style. 1st ed. s.l.:Routledge.
Hofer, C. W. & Schendel, D., (1978). Strategy Formulation: Analytical Concepts. 1st ed. St. Paul: West Publising Co., .
Hofstede, G., (1980). Culture's Consequences. Beverly Hills: Sage Publications.
Kay, J., (1993). Foundations of Corporate Success. 1st ed. Oxford: Oxford University Press.
Kiechel III, W., (1981). The decline of the experience curve. Fortune , 5 October, pp. 139-146.
Kim, W. C. & Mauborgne, R., 2005. Blue Ocean Strategy: how to create uncontested market space and make the competition irrelevant. 1st ed. Cambridge: Harvard Business School.
Klein, J., (2001). A Critique of Competitive Advantage. Manchester, Strategy Stream.
Lancaster, K. J., (1979). Variety, Equity, and Efficiency. 1st ed. New York: Columbia University Press.
Mintzberg, H., Ashlstrand, B. & Lampel, J., (1998). Strategy Safari. 1st ed. London: Prentice Hall.
Nelson, R. R. & Winter, S. G., (1982). An Evolutionary Theory of Economic Change. Cambridge: Belknap Press.
Porter, M. E., (1980). Competitive Strategy. 1st ed. New York: Free Press.
Porter, M. E., (1985). Competitive Advantage. 1st ed. New York: The Free Press.
Porter, M. E., (1990). The Competitive Advantage of Nations. Harvard Business Review, Issue March-April, pp. 73-94.