World Scientific
  • Search
    Quick Search in Books
    Access type:
    Quick Search anywhere
    Access type:
    Advanced Search
  • My Cart
  •   
Skip main navigation

Cookies Notification

We use cookies on this site to enhance your user experience. By continuing to browse the site, you consent to the use of our cookies. Learn More
×
Browse the 2024 Asian Studies Catalogue!

System Upgrade on Tue, May 28th, 2024 at 2am (EDT)

Existing users will be able to log into the site and access content. However, E-commerce and registration of new users may not be available for up to 12 hours.
For online purchase, please visit us again. Contact us at [email protected] for any enquiries.
From Adam Smith to Michael Porter cover
Purchase Save for later

With Foreword by Michael Porter

Following the success of the First Edition published in 2000, this extended edition of From Adam Smith to Michael Porter: Evolution of Competitiveness Theory provides a thorough explanation of the evolution of international competitiveness theories and their economic and strategic implications. The theories range from classical theories such as Adam Smith's theory of absolute advantage, to new theories such as Michael Porter's diamond model. Professor Cho and Professor Moon have updated their research with their latest theoretical advancements, such as the double-diamond-based nine factor model, and MASI (Measure, Analyze, Stimulate, and Implement) model.

This newly revised volume is suitable for International Economics, Business Strategy, and International Business courses on both the graduate and upper-division undergraduate levels. Policy makers and corporate managers will also find useful implications from this book's systematic integration and application of important competitiveness models.

Sample Chapter(s)
Foreword (28 KB)
Introduction (39 KB)
Chapter 1: Traditional Model: Theory (129 KB)


Contents:
  • From Adam Smith to Michael Porter:
    • Traditional Model: Theory
    • Traditional Model: Debate
    • New Model: Theory
    • New Model: Debate
  • Michael Porter and Theoretical Extensions:
    • Extended Model (1): The Generalized Double Diamond Model
    • Extended Model (2): The Nine-Factor Model
    • Extended Model (3): Double Diamond-Based Nine-Factor Model
    • Methodology for National Competitiveness Analysis
  • Michael Porter and Practical Extensions:
    • Application: Firm Level
    • Application: Industry Level
    • Application: National Level
    • Application: Other Areas

Readership: Business strategy and international business courses for graduate and upper-division undergraduate levels. Policymakers and corporate managers.

Free Access
FRONT MATTER
  • Pages:i–xxii

https://doi.org/10.1142/9789814401661_fmatter

Preview Abstract

The following sections are included:

  • FOREWORD
  • PREFACE
  • CONTENTS
  • ACKNOWLEDGMENTS
  • LIST OF TABLES AND FIGURES
  • EPILOGUE
  • INTRODUCTION

Part I. From Adam Smith to Michael Porter

No Access
TRADITIONAL MODEL: THEORY
  • Pages:3–21

https://doi.org/10.1142/9789814401661_0001

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINT
  • MERCANTILISM
  • ABSOLUTE ADVANTAGE
  • COMPARATIVE ADVANTAGE
  • FACTOR ENDOWMENTS
    • The Factor Price Equalization Theorem
    • The Stolper–Samuelson Theorem
    • The Rybczynski Theorem
  • LEONTIEF PARADOX
    • Labor Skills
    • Natural Resources
    • Factor Intensity Reversals
  • PRODUCT CYCLE
  • COUNTRY SIMILARITY
  • ECONOMIES OF SCALE
  • CONCLUSION
  • REFERENCES

No Access
TRADITIONAL MODEL: DEBATE
  • Pages:23–60

https://doi.org/10.1142/9789814401661_0002

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • COMPETITIVENESS: A DANGEROUS OBSESSION
    • THE HYPOTHESIS IS WRONG
    • MINDLESS COMPETITION
    • CARELESS ARITHMETIC
    • THE THRILL OF COMPETITION
    • THE DANGERS OF OBSESSION
    • ADVISERS WITH NO CLOTHES
  • RESPONSE 1: PLAYING TO WIN
    • IT'S LIVING STANDARDS, STUPID
    • SPLITTING HAIRS
  • RESPONSE 2: MICROCHIPS, NOT POTATO CHIPS
    • WELCOME TO THE REALWORLD
    • PUTTING PEOPLE FIRST
  • RESPONSE 3: SPEAKING FREELY
    • BEGGAR-THY-QUESTION
  • COUNTER-RESPONSE: PROVING MY POINT
    • MOVING TARGET
    • SLOPPY MATH: PART II
    • THINGS ADD UP
  • REFERENCES

No Access
NEW MODEL: THEORY
  • Pages:61–99

https://doi.org/10.1142/9789814401661_0003

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • THE COMPETITIVE ADVANTAGE OF NATIONS
    • HOW COMPANIES SUCCEED IN INTERNATIONAL MARKETS
    • THE DIAMOND OF NATIONAL ADVANTAGE
    • THE DIAMOND AS A SYSTEM
    • THE ROLE OF GOVERNMENT
    • THE COMPANY AGENDA
    • THE ROLE OF LEADERSHIP
    • APPENDIX A: PATTERNS OF NATIONAL COMPETITIVE SUCCESS
    • APPENDIX B: WHAT IS NATIONAL COMPETITIVENESS?
    • APPENDIX C: HOW THE DIAMOND WORKS: THE ITALIAN CERAMIC TILE INDUSTRY
      • The Origins of the Italian Industry
      • The Emerging Italian Tile Cluster
      • Sophisticated Home Demand
      • Sassuolo Rivalry
      • Pressures to Upgrade
      • Internationalization

No Access
NEW MODEL: DEBATE
  • Pages:101–120

https://doi.org/10.1142/9789814401661_0004

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • CONFLICTING PERSPECTIVES
  • CRITIC 1: DIAMOND IN THE ROUGH
    • THE ECONOMIC SIZE
    • FOREIGN DIRECT INVESTMENT
    • THE ECONOMIC STAGE
    • TWO OUTSIDE FORCES
  • CRITIC 2: PORTER TAKES THE WRONG TURN
    • INCOMPATIBLE POLICY RECOMMENDATIONS
    • OLD-FASHIONED POLICY RECOMMENDATIONS
    • MISLEADING POLICY RECOMMENDATIONS
  • RESPONSE BY PORTER AND ARMSTRONG
    • GEOGRAPHIC SCOPE AND GEOGRAPHIC LOCUS
    • DIFFERENT LEVELS OF ANALYSIS
    • BUILDING DOMESTICALLY OR OUTSOURCING ABROAD
  • COUNTER-RESPONSE BY RUGMAN
    • GEOGRAPHIC SCOPE AND GEOGRAPHIC LOCUS
    • DIFFERENT LEVELS OF ANALYSIS
    • BUILDING DOMESTICALLY OR OUTSOURCING ABROAD
  • EVALUATION ON THE DEBATES
  • REFERENCES

Part II. Michael Porter and Theoretical Extensions

No Access
EXTENDED MODEL (1): THE GENERALIZED DOUBLE DIAMOND MODEL
  • Pages:123–142

https://doi.org/10.1142/9789814401661_0005

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • INTRODUCTION
  • SINGLE OR DOUBLE DIAMONDS?
  • DIAMOND VARIABLES AND DATA
    • Dependent Variables
    • Independent Variables
      • Factor conditions
      • Demand conditions
      • Related and supporting industries
  • EMPIRICAL RESULTS OF THE DIAMOND TESTS
  • CONCLUSION
  • REFERENCES

No Access
EXTENDED MODEL (2): THE NINE-FACTOR MODEL
  • Pages:143–165

https://doi.org/10.1142/9789814401661_0006

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • INTRODUCTION
  • THE THEORETICAL BACKGROUND TO INTERNATIONAL COMPETITIVENESS
    • A Definition of International Competitiveness
    • Existing Studies on Determinants of International Competitiveness
  • A NEW MODEL OF INTERNATIONAL COMPETITIVENESS FOR LESS DEVELOPED COUNTRIES
    • The Nine-Factor Model
      • Physical factors
      • Human factors
      • The external factor: Chance events
  • THE LIFE CYCLE OF NATIONAL COMPETITIVENESS
    • Less Developed Stage
    • Developing Stage
    • Semi-Developed Stage
    • Developed Stage
  • THE LIFE CYCLE OF INDUSTRIAL COMPETITIVENESS
    • Early Stage
    • Growth Stage
    • Maturing Stage
    • Declining Stage
  • CASE STUDIES: KOREA'S MAJOR INDUSTRIES
    • The Semiconductor Industry
    • The Automobile Industry
    • The Steel Industry
    • The Apparel Industry
  • CONCLUSION
    • A Comparison of Four Industries
    • Implications for the Korean Economy
    • Implications for Other Nations
    • Limitations of the Study and Suggestions for Future Research
  • REFERENCES

No Access
EXTENDED MODEL (3): DOUBLE-DIAMOND-BASED NINE-FACTOR MODEL
  • Pages:167–188

https://doi.org/10.1142/9789814401661_0007

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • INTRODUCTION
  • PREVIOUS LITERATURE ON NATIONAL COMPETITIVENESS
  • THE DUAL DOUBLE DIAMOND MODEL
    • Shortcomings in Existing Models
    • The Dual Double Diamond Model
  • MODELING
  • HYPOTHESES
    • Porter's Diamond Model Versus the Generalized Double Diamond Model
    • Porter's Diamond Model Versus the Nine-Factor Model
    • The Generalized Double Diamond Model Versus the Dual Double Diamond Model
    • The Nine-Factor Model Versus the Dual Double Diamond Model
  • RESEARCH DESIGN
    • The Model
    • Data
    • Measures and Method
  • RESULTS
  • DISCUSSION
  • CONCLUSION
  • REFERENCES
  • APPENDIX

No Access
METHODOLOGY FOR NATIONAL COMPETITIVENESS ANALYSIS
  • Pages:189–214

https://doi.org/10.1142/9789814401661_0008

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • INTRODUCTION
  • THEORETICAL DEVELOPMENT
    • Measure:What is National Competitiveness?
      • Previous studies on national competitiveness
      • A new model: The dual double diamond (DDD) model
    • Analyze: Classifying Nations
    • Simulate: Applying Business Models to the National Level
    • Implement: Optimal Strategic Mix
  • DATA AND APPLICATION
    • Data
    • Application
      • Measure: the validity of the DDD model
      • Analyze: 3 × 3 country groups
      • Simulate: changing landscape of competition and competitive structure
      • Implement: toward higher competitiveness
  • DISCUSSION
  • CONCLUSIONS
  • REFERENCES

Part III. Michael Porter and Practical Extensions

No Access
APPLICATION: FIRM LEVEL
  • Pages:217–242

https://doi.org/10.1142/9789814401661_0009

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • INTRODUCTION
    • Company Profile
    • Importance of Research and Conceptual Framework
  • DIAMOND VARIABLES AND DESCRIPTIVE DATA
    • Factor Conditions
      • Domestic factor conditions
      • International factor conditions
    • Demand Conditions
      • Domestic demand conditions
      • International demand conditions
    • Related and Supporting Industries
      • Domestic related and supporting industries
      • International Related and Supporting Industries
      • Firm Strategy, Structure, and Rivalry
        • Domestic firm strategy, structure, and rivalry
        • International firm strategy, structure and rivalry
    • EMPIRICAL RESULTS OF THE DIAMOND TESTS
      • Calculating Scores and Drawing the Diamond
        • The Domestic Diamond
        • The International Diamond
      • The Global Diamond
  • CONCLUSION
    • Implications
    • Limitations of the Study and Suggestions for Further Studies
  • REFERENCES

No Access
APPLICATION: INDUSTRY LEVEL
  • Pages:243–262

https://doi.org/10.1142/9789814401661_0010

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • INTRODUCTION
  • PORTER'S FOUR DETERMINANTS AND NEW COMPETITIVE ADVANTAGES
    • Factor Conditions
    • Demand Conditions
    • Related and Supporting Industries
      • Firm Strategy, Structure, and Rivalry
  • EXTENDING PORTER'S DETERMINANTS THROUGH INTERNATIONALIZATION
    • Korean Factor Conditions
    • Korean Demand Conditions
    • Korean Related and Supporting Industries
    • Korean Firm Strategy, Structure, and Rivalry
  • CONCLUSION
  • REFERENCES

No Access
APPLICATION: NATIONAL LEVEL
  • Pages:263–280

https://doi.org/10.1142/9789814401661_0011

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • APPLICATION OF MASI: THE KOREA CASE
    • MASI Methodology
      • Term-Priority Matrix
    • Measurement
    • Analysis
    • Simulation
    • Implementation: Optimal Strategic Mix (Macro Level)
    • Implementation: Term-Priority Matrix (Micro Level)
      • Identification of weak criteria
      • Constructing term-priority matrix
  • COOPERATIVE STRATEGY: A CASE OF KOREA AND CHINA
    • Overall Ranking
    • Structure of National Competitiveness (Main Factor Level)
  • OPERATIONALIZATION OF INHERITED AND CREATED ADVANTAGES
    • Theoretical Background and Conceptualization
      • Empirical Test
    • Methodology and data
    • Results
  • CONCLUSION
  • REFERENCES

No Access
APPLICATION: OTHER AREAS
  • Pages:281–310

https://doi.org/10.1142/9789814401661_0012

Preview Abstract

The following sections are included:

  • SUMMARY AND KEY POINTS
  • INTRODUCTION
  • EXPANSION OF CLUSTER
  • ANALYTICAL TOOLS AND CASE STUDIES
    • The Growth Triangle: Korea with China, Japan, and Russia
    • Cooperative Cases between Korea and other Countries
    • Cooperation between Korea and China
    • Cooperation between Korea and Japan
    • Cooperation between Korea and Russia
  • EMPIRICAL ANALYSIS
    • Hypothesis
    • Analysis
      • Analytical model
    • Data and Methodology
    • Results and Discussions
  • A FURTHER CONSIDERATION: CULTURAL DIFFERENCES
    • An Analytical Model
    • Data and Methodology
    • Results and Discussions
  • CONCLUSION
  • REFERENCES

Free Access
BACK MATTER
  • Pages:311–324

https://doi.org/10.1142/9789814401661_bmatter

Preview Abstract

The following sections are included:

  • REFERENCES
  • INDEX

Review of the First Edition:

“The authors provide perceptive, concise summaries of the significant theories from Adam Smith to Michael Porter, resulting in an excellent overview of economic thought as it pertains to trade.”
Choice

Dong-Sung Cho is Professor of Strategy, International Business and Management Design at Seoul National University (SNU). He received a doctoral degree from Harvard Business School in 1976 and worked at Gulf Oil's Planning Group before joining SNU in 1978. He was a Visiting Professor at HBS, INSEAD, Helsinki School of Economics, the University of Tokyo, Hitotsubashi University, University of Michigan, Duke, Peking, Zhejiang and Nankai Universities. Among the 57 books he has published are The General Trading Company by Lexington Books (1986), Tiger Technology: the Rise of the Semiconductor Industry in Asia by Cambridge University Press (1999), and From Adam Smith to Michael Porter: Evolution of Competitiveness Theory by World Scientific (2000). He has served on the Board of Directors at 15 multinational companies and research organizations. He is Honorary Consul General of Finland in Korea. He was President of the Korean Academic Society of Business Administration and also chaired the Korean Association of Academic Societies, which is the umbrella organization of 651 academic societies that encompass humanities, social sciences, natural sciences, engineering, and others. He also co-chaired the Committee for Government Innovation Management and the Committee for Synergistic Cooperation between Big and Small Corporations jointly with the Prime Minister of Korea. Since 2008, Dr Cho has been in the Korean Presidential Council for National Competitiveness.


Hwy-Chang Moon received his PhD from the University of Washington and is currently a Professor of International Business and Strategy at the Graduate School of International Studies, Seoul National University. In parallel with his Seoul National University professorship, Dr Moon is Director of the Institute for Policy and Strategy on National Competitiveness. He has taught at the University of Washington, University of the Pacific, State University of New York at Stony Brook, Helsinki School of Economics and Business, Kyushu University, Keio University, and Hitotsubashi University. He was also a Visiting Professor at Tokyo University. On topics such as International Business Strategy, Foreign Direct Investment, and Cross-Cultural Management, Professor Moon has published numerous journal articles and books, including Global Business Strategy: Asian Perspective in 2010 by World Scientific. He has contributed to the field of International Business, particularly by developing several new analytical tools, including the generalized double diamond approach to international competitiveness and the imbalance theory of foreign direct investment. Professor Moon is currently the editor-in-chief of the Journal of International Business and Economy. He has served as a consultant to many international companies, international organizations (APEC, World Bank, UNCTAD), and governments (Malaysia, Dubai, Azerbaijan, Guangdong Province of China).

Sample Chapter(s)
Foreword (28 KB)
Introduction (39 KB)
Chapter 1: Traditional Model: Theory (129 KB)