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The Business of Economics$
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John Kay

Print publication date: 1996

Print ISBN-13: 9780198292227

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198292228.001.0001

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The Competitive Advantage of Nations

The Competitive Advantage of Nations

Chapter:
(p.69) 10 The Competitive Advantage of Nations
Source:
The Business of Economics
Author(s):

John Kay (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0198292228.003.0010

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

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