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Developing A Global Competitive Focus

Developing A Global Competitive Focus advantages include economies of scale, the ability to serve multinational customers, and a transferable brand reputation. An important question is how effective will U.S. firms be in developing a global competitive advantage? Many critics argue that most trends are in the wrong direction for nearly all U.S. industries. For example, Professor Bruce Merrifield of the University of Pennsylvania and a former Assistant Secretary for Productivity, Technology, and Innovation has described how the U.S. electronics industry has lost the ability to control technologies critical to its economic health. According to Professor Merrifield, roughly 90% of all scientific knowledge has been generated in the past 35 years, but the mass of knowledge will double in the next 10 to 15 years. Furthermore, Merrifield states that in 1970 the U.S. generated 75% of the world's technology. This rate decreased to 50% by 1990 and is estimated to drop to 30% by the year 2000. Professor Michael Porter of the Harvard Business School states that an international competitive advantage grows out of improvement, innovation, and change. According to Porter, firms gain an advantage over international rivals because they perceive a new basis for competing, or find new and better means to compete in old ways. For example, Sony was the first to transistorize the radio. Boeing pioneered the concept of an airliner family and was the first in its industry to compete on a global basis. Porter argues that part of the task for firms to become innovative is to be aware of the possibilities for innovation and to overcome organizational bureaucracies and inertia in pursuing them. Yet the need for innovation runs counter to the Developing A Global organizational norms in most companies. The Competitive Focus present way of doing things becomes almost like a by Daniel F. Jennings religion. Individuals who challenge established wisdom are expelled or isolated. As an organization Recent events in the Soviet Union together with matures, its needs for stability and security seems to anticipated changes in the European Common rise. Market have caused many U.S. firms to consider It takes strong pressures to counteract these forces. becoming global in nature. In the global arena, a A firm must expose itself to external pressures and firm's competitive position in one nation stimuli that motivate and guide the need to act. It significantly affects (and is affected) by its position must create an impetus for change. in other nations. Rivals compete against each other on a truly worldwide basis. Successful global firms Daniel F. Jennings is W.A. Mays Professor of create competitive advantages by combining certain Entrepreneurship and Strategic Management at advantages created in their home countries. These Baylor University. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness Emerald Publishing

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1059-5422
DOI
10.1108/eb060151
Publisher site
See Article on Publisher Site

Abstract

advantages include economies of scale, the ability to serve multinational customers, and a transferable brand reputation. An important question is how effective will U.S. firms be in developing a global competitive advantage? Many critics argue that most trends are in the wrong direction for nearly all U.S. industries. For example, Professor Bruce Merrifield of the University of Pennsylvania and a former Assistant Secretary for Productivity, Technology, and Innovation has described how the U.S. electronics industry has lost the ability to control technologies critical to its economic health. According to Professor Merrifield, roughly 90% of all scientific knowledge has been generated in the past 35 years, but the mass of knowledge will double in the next 10 to 15 years. Furthermore, Merrifield states that in 1970 the U.S. generated 75% of the world's technology. This rate decreased to 50% by 1990 and is estimated to drop to 30% by the year 2000. Professor Michael Porter of the Harvard Business School states that an international competitive advantage grows out of improvement, innovation, and change. According to Porter, firms gain an advantage over international rivals because they perceive a new basis for competing, or find new and better means to compete in old ways. For example, Sony was the first to transistorize the radio. Boeing pioneered the concept of an airliner family and was the first in its industry to compete on a global basis. Porter argues that part of the task for firms to become innovative is to be aware of the possibilities for innovation and to overcome organizational bureaucracies and inertia in pursuing them. Yet the need for innovation runs counter to the Developing A Global organizational norms in most companies. The Competitive Focus present way of doing things becomes almost like a by Daniel F. Jennings religion. Individuals who challenge established wisdom are expelled or isolated. As an organization Recent events in the Soviet Union together with matures, its needs for stability and security seems to anticipated changes in the European Common rise. Market have caused many U.S. firms to consider It takes strong pressures to counteract these forces. becoming global in nature. In the global arena, a A firm must expose itself to external pressures and firm's competitive position in one nation stimuli that motivate and guide the need to act. It significantly affects (and is affected) by its position must create an impetus for change. in other nations. Rivals compete against each other on a truly worldwide basis. Successful global firms Daniel F. Jennings is W.A. Mays Professor of create competitive advantages by combining certain Entrepreneurship and Strategic Management at advantages created in their home countries. These Baylor University.

Journal

Competitiveness Review: An International Business Journal incorporating Journal of Global CompetitivenessEmerald Publishing

Published: Jan 1, 1991

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