Politická ekonomie 2024, 72(1):1-23 | DOI: 10.18267/j.polek.1399

Winning at Home and Abroad: A Generalized Double Diamond Framework for Selected CEE Countries

Irina-Marilena Ban ORCID..., Valentina Ioana Cheregi ORCID...
Irina-Marilena Ban: Babeș-Bolyai University, Faculty of Economics and Business Administration, Department of Economics, Cluj-Napoca, Romania
Valentina Ioana Cheregi: Babeș-Bolyai University, Faculty of Economics and Business Administration, Department of Economics, Cluj-Napoca, Romania

In the lens of European integration, national competitiveness no longer depends just on national inheritance, but also on the new member states' capacity of exploiting existing advantages of EU membership. In this paper, we closely follow the effects of European Union (EU) admission on national competitiveness for eleven Central and Eastern European (CEE) countries that joined the EU after 2004. The analysis includes new specific variables that we consider potential boosters of competitiveness in this particular sample of countries, besides the proxies generally used in the literature. The results indicate that, for most of the CEE countries, EU accession bought both domestic and international advantages, with a more visible positive change in the international position. Although we were able to classify the analysed economies into three distinct groups, there are still notable differences across the CEE countries that require differentiated strategies for enhancing competitiveness.

Keywords: Competitive advantage, Porter's diamond, generalized double diamond model, CEE countries
JEL classification: F10, F23, O52, R58

Received: April 13, 2023; Revised: June 11, 2023; Accepted: June 14, 2023; Prepublished online: January 31, 2024; Published: February 27, 2024  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Ban, I., & Cheregi, V.I. (2024). Winning at Home and Abroad: A Generalized Double Diamond Framework for Selected CEE Countries. Politická ekonomie, 72(1), 1-23. doi: 10.18267/j.polek.1399
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Balcarová, P. (2014). The comparison of nine-factor model and diamond model: Application for the Czech Republic, Slovakia and Hungary. Acta academica karviniensia, 14(1), 5-15. https://doi.org/10.25142/aak.2014.001 Go to original source...
    2. Ban, I.-M. (2017). Specializarea internaţională şi avantajul competitiv. Cluj-Napoca: Presa Universitară Clujeană.
    3. Batu, M. (2017). International worker remittances and economic growth in a Real Business Cycle framework. Structural Change and Economic Dynamics, 40, 81-91. https://doi.org/10.1016/j.strueco.2016.12.004 Go to original source...
    4. Belesks-Spasova, E., Loykulnanta, S., Nguyen, Q. T. (2016). Firm-specific, national and regional competitive advantages: The case of emerging market MNEs-Thailand. Asian Business & Management, 15(4), 264-291. https://doi.org/10.1057/s41291-016-0009-8 Go to original source...
    5. Bucevska V. (2022). Impact of Remittances on Economic Growth: Empirical Evidence from South-East European Countries. South East European Journal of Economics and Business, 17(1), 79-94. https://doi.org/10.2478/jeb-2022-0006 Go to original source...
    6. Castro-Gonzáles, S., Peña-Vinces, J. C., Guillen, J. (2016). The competitiveness of Latin-American economies: Consolidation of the double diamond theory. Economic Systems, 40(3), 373-386. https://doi.org/10.1016/j.ecosys.2015.10.003 Go to original source...
    7. Castro-Gonzáles, S. J., Espina, M. I. (2017). Strategies and competitiveness for emerging countries. A comparative study among three South-American countries. International Journal of Emerging Markets, 12(1), 125-139. https://doi.org/10.1108/IJoEM-12-2014-0222 Go to original source...
    8. Cho, D.-S. (1994). A Dynamic Approach to International Competitiveness: The Case of Korea. Asia Pacific Business Review, 1(1), 17-36. https://doi.org/10.1080/13602389400000002 Go to original source...
    9. Cho, D.-S., Moon, H.-C. (2005). National Competitiveness: Implications for different groups and strategies. International Journal of Global Business and Competitiveness, 1(1), 1-11.
    10. Cho, D.-S., Moon, H.-C., Kim, M.-Y. (2008). Does one size fit all? A dual double diamond approach to country-specific advantages. Asian Business & Management, 8(1), 83-102. https://doi.org/10.1057/abm.2008.27 Go to original source...
    11. Cho, D.-S., Moon, H.-C., Yin, W. (2016). Enhancing national competitiveness through national cooperation. The case of South Korea and Dubai. Competitiveness Review, 26(5), 482-499. https://doi.org/10.1108/CR-05-2015-0036 Go to original source...
    12. Fainshmidt, S., Smith, A., Judge, W. Q. (2016). National competitiveness and Porter's diamond model: The role of MNE penetration and governance quality. Global Strategy Journal, 6(2), 81-104. https://doi.org/10.1002/gsj.1116 Go to original source...
    13. Fang, K., Zhou, Y., Wang, S., et al. (2018). Assessing national renewable energy competitiveness of the G20: A revised Porter's Diamond Model. Renewable and Sustainable Energy Reviews, 93, 719-731. https://doi.org/10.1016/j.rser.2018.05.011 Go to original source...
    14. IMD (2021). World Competitiveness Yearbook [online]. Lausanne: International Institute for Management Development. Retrieved March 18, 2023. Available from: https://worldcompetitiveness.imd.org/EShop/Home/DownloadPdf?fileName=Factor_sample.PDF
    15. Kiselakova, D., Sofrankova, B., Cabinova, V., et al. (2018). The Impact of R&D Expenditure on the Development of Global Competitiveness within the CEE EU Countries. Journal of Competitiveness, 10(3), 34-53. https://doi.org/10.7441/joc.2018.03.03 Go to original source...
    16. León-Ledesma, M., Piracha, M. (2001). International migration and the role of remittances in Eastern Europe. Department of Economics Discussion Paper No. 01,13. Go to original source...
    17. Liu, C. (2017). International Competitiveness and the Fourth Industrial Revolution. Entrepreneurial Business and Economics Review, 5(4), 111-133. https://doi.org/10.15678/EBER.2017.050405 Go to original source...
    18. Liu, D.-Y., Hsu, H.-F. (2009). An international comparison of empirical generalized double diamond model approaches. Competitiveness Review, 19(3), 160-174. https://doi.org/10.1108/10595420910962043 Go to original source...
    19. Molendowski, E., Żmuda, M. (2014). Changes In Competitiveness Among the Visegrad Countries After Accession to The European Union: A Comparative Analysis Based on a Generalized Double Diamond Model. Comparative Economic Research. Central and Eastern Europe, 16(4), 121-153. https://doi.org/10.2478/cer-2013-0031 Go to original source...
    20. Moon, C. H., Rugman, A. M., Verbeke, A. (1995). The generalized double diamond approach to international competitiveness. In: Rugman, A. M., Van Den Broec, J., Verbeke, A. Beyond the Diamond. Research in Global Strategic Management. Volume 5, pp. 97-114. Bingley: Emerald Group Publishing Limited. ISBN 978-1-55938-434-6. Go to original source...
    21. Moon, H. C., Rugman, A. M., Verbeke, A. (1998). A generalized double diamond approach to the global competitiveness of Korea and Singapore. International Business Review, 7(2), 135-150. https://doi.org/10.1016/S0969-5931(98)00002-X Go to original source...
    22. Mulliqui, A., Adnett, N., Hisarciklilar, M., et al. (2018). Human capital and international competitiveness in Europe, with special reference to transition economies. Eastern European Economics, 56(6), 541-563. https://doi.org/10.1080/00128775.2018.1502612 Go to original source...
    23. OECD (2008). Handbook on Constructing Composite Indicators: Methodology and User Guide. Paris: OECD Publishing. ISBN 9789264043466. https://doi.org/10.1787/9789264043466-en Go to original source...
    24. Porter, M. E. (1990). The competitive advantage of nations [online]. New York: The Free Press. Retrieved March 18, 2023. Available from: https://hbr.org/1990/03/the-competitive-advantage-of-nations
    25. Postelnicu, C., Ban, I. M. (2010). Some Empirical Approaches of the Competitiveness' Diamond - The Case of Romanian Economy. The Romanian Economic Journal, 13(36), 53-77.
    26. Rugman, A. M., D'Cruz, J., (1993). The Double Diamond Model of International Competitiveness: The Canadian Experience. Management International Review, 33, 17-39.
    27. Rugman, A., Oh, C. H. (2008). The international competitiveness of Asian firms. Journal of Strategy and Management, 1(1), 57-71. https://doi.org/10.1108/17554250810909428 Go to original source...
    28. Rugman, A. M., Oh, C. H., Lim, D. S. (2012). The regional and global competitiveness of multinational firms. Journal of the Academy of Marketing Science, 40, 218-235. https://doi.org/10.1007/s11747-011-0270-5 Go to original source...
    29. Sakakibara, M., Porter, M. (2001). Competing at Home to Win Abroad: Evidence from Japanese Industry. The Review of Economics and Statistics, 83(2), 310-322. Go to original source...
    30. Savic, N., Pitic, G., Konjikusic, S. (2014). Microeconomic and Macroeconomic determinants of competitiveness of East European countries in 2012. International Journal of Economic Policy in Emerging Economies, 7(3), 264-280. https://doi.org/10.1504/IJEPEE.2014.065251 Go to original source...
    31. Simionescu, L., Dumitrescu, D. (2017). Migrants Remittances Influence on Fiscal Sustainability in Dependent Economies. Amfiteatru Economic Journal, 19(46), 640-653.
    32. Smit, A. J. (2010). The competitive advantage of nations: Is Porter's Diamond Framework a new theory that explains the international competitiveness of countries? Southern African Business Review, 14(1), 105-130.
    33. Terzi, S., Otoiu, A., Grimaccia, E., et al. (2021). Open Issues in Composite Indicators. A starting point and a reference on some state-of-the-art issues. Roma: Roma TrE-Press. ISBN 979-12-5977-001-1
    34. Zhang, H. (2016). Literature Review on Country-Specific Advantage. Journal of Service Science and Management, 9, 111-118. https://doi.org/10.4236/jssm.2016.92014 Go to original source...
    35. Żmuda, M. (2017). Towards a Taxonomy of International Competitiveness. Journal of Management and Business Administration. Central Europe, 25(3), 97-116. https://doi.org/10.7206/jmba.ce.2450-7814.204 Go to original source...
    36. Żmuda, M. (2018). Modelling the competitiveness of a catching-up economy. Cologne Business School (CBS) Working Paper Series No. 05/2018.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content