Economics at your fingertips  

Locational and Internal Sources of Firm Competitive Advantage: Applying Porter’s Diamond Model at the Firm Level

Alexander Eickelpasch (), Anna Lejpras () and Andreas Stephan ()

No 2010-6, JIBS Working Papers from Jönköping International Business School

Abstract: This paper employs Porter’s diamond model to examine the relationships between a firm’s locational environment, its innovation capabilities, and competitive advantage assessed in terms of various performance indicators. This study implements a structural equation model that is estimated with the partial least squares (PLS) approach using a sample of 2,345 East German firms. This investigation shows that a high frequency of cooperation spurs firm innovativeness and performance, but that a strong focus on local demand impedes both. Various types of governmental support as well as the quality of locational factors tend to be more important for less innovative companies compared to the more innovative ones. The results indicate that strong local competition is an impediment to firm innovativeness and performance with conflicts which Porter’s prediction.

Keywords: Competitive advantage; firm environment; innovativeness; partial least squares (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-07-30
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:

Access Statistics for this paper

More papers in JIBS Working Papers from Jönköping International Business School Jönköping International Business School, P.O. Box 1026, SE-551 11 Jönköping, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Susanne Hansson ( this e-mail address is bad, please contact ) and Stefan Carlstein ( this e-mail address is bad, please contact ).

Page updated 2021-12-03
Handle: RePEc:hhb:hjacfi:2010_006