Enhancing Competitiveness of International Business Ecosystem: From Trade to Global Value Chain (GVC)

Abstract

Creating competitive advantage of a firm comes from finding strategic fit among value added activities across national borders. Firms choose the locations where they can capitalize on which may have been detrimental to national competitiveness. In this respect, the dissertation applies the concept of international business ecosystem in analyzing competitive advantages, and proves that global business is about the competition between business ecosystems where the value added activities of the firm need to be compatible and complementary with each other to enhance their connectivity and commerciality of a region. It is no more about having superior resources to make a firm or a nation more competitive in international business, but to build a platform that enhances the fit of the entire global value chain activities, through the four factors presented in this dissertation. This dissertation posits that the four criteria developed based on the platform studies and business ecosystem reconciles the issue between global activities of the firm and national competitiveness. The theoretical background to this logic is supported by the extended imbalance theory, where firms address the deficiencies at home through participating in global value chain. While the major contribution of this dissertation lies in the theoretical extensions of competitive advantage at firm, business ecosystem and national levels, the empirical analyses, were conducted to solidify the impact of global business ecosystem on both firm and national competitiveness. The findings also draw upon the legal and policy implications for economic and regional development, particularly for resource-scarce countries.