Chapter

The Competitive Advantage of Nations

John Kay

in The Business of Economics

Published in print October 1996 | ISBN: 9780198292227
Published online November 2003 | e-ISBN: 9780191596520 | DOI: http://dx.doi.org/10.1093/0198292228.003.0010
 The Competitive Advantage of Nations

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This chapter explores how the resource‐base theory of strategy can be extended from the competitive advantage of firms to the competitive advantage of countries. A country's competitiveness will ultimately depend on three factors. The first is the strength of the competitive advantage of its individual firms. The second is the access to scarce resources that are available within a country. Most importantly, it will rely on the existence of supportive networks of firms and activities, which facilitate: speed, flexibility of response, and the construction of a base of tacit knowledge.

Keywords: comparative advantage; competitive advantage; international competitiveness; international trade; networks; resources; tacit knowledge

Chapter.  5588 words. 

Subjects: Microeconomics

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