DOMESTIC MARKETS AND INTERNATIONAL COMPETITIVENESS: GENERIC AND PRODUCT‐SPECIFIC COMPETENCIES IN THE ENGINEERING SECTOR

Ashish Arora () and Alfonso Gambardella

Strategic Management Journal, 1997, vol. 18, issue S1, 53-74

Abstract: This paper develops a theory of how the size of the domestic market shapes firm competencies. Our theory implies that large markets are beneficial even if factors such as economies of scale or learning effects are absent. We validate our model by an international comparison of the performance of firms that provide engineering services to the oil and petrochemical industry. We conclude that, relative to the United States, the competitiveness of European or Japanese industries is greater in activities whose underlying competencies are not product specific and can be utilized across a variety of products. The benefits of large markets are greatest for activities based on product‐specific competencies. © 1997 by John Wiley & Sons, Ltd.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://doi.org/10.1002/(SICI)1097-0266(199707)18:1+3.0.CO;2-V

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:stratm:v:18:y:1997:i:s1:p:53-74

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0143-2095

Access Statistics for this article

More articles in Strategic Management Journal from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().