Date Added: May 2006
Michael Porter's Theory of the Competitive Advantage of Nations is commonly referred to as Porter's Diamond, as it comprises 4 key elements that lead to national competitiveness. This paper empirically tests Porter's theory. 50 automotive companies in the automotive industry headquartered in 8 different nations comprise the sample. The results illustrate that the global automotive industry does in fact support Porter's model that defines national competitive advantage. Relationships that exhibit statistical significance are in the expected directions. Applicability of the model and extensions of this research are discussed.