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Abstract
The turbulent start of the new century has brought new challenges for firms, industries and countries. Success in such times is demanding new perspectives on competitiveness. Detailed structuring of competitiveness related problems of software firms in India identified weaknesses in understanding about the concept and its implementation as root causes. Review of competitiveness-related literature, by classifying it at three levels, clearly indicated the importance of the firm level. The focus of this paper is on review of literature at the firm level and study of competitiveness-related frameworks and models. The studies are further classified on the AssetProcesses-Performance (APP) framework. Key criteria and sources of competitiveness at the firm level are synthesised and depicted graphically as connotations of competitiveness. Select frameworks and models of competitiveness were reviewed and categorized. A sample matrix that can help select frameworks and models is demonstrated. Utility of the APP framework as a tool for integration competitiveness and strategy is explored.
Key words: Competitiveness, Strategy, Firm, Competitiveness process, Sources of Competitiveness, Flexibility, Frameworks and Models.
The 21st century seems to have begun with events indicative of the turbulence, challenges and opportunities ahead. Excesses during long economic boom in America surfaced with the dot-corn crash. The attacks of September 2001 and the collapse of giants such as Enron and WorldCom have shaken confidence in business. With Japan passing through a decade-long painful transition, two biggest economies of the world are in poor shape.
Survival and success in such turbulent times increasingly depend on competitiveness. Competitiveness has been described many by researchers as a multidimensional and relative concept. The significance of different criteria of competitiveness changes with time and context. Theories and frameworks must be flexible enough to integrate the change with key strategic management processes if their utility is sustained in practice.
While there are many theories about competitiveness and related interdisciplinary fields of strategy, operations, resource-based view (Barney, 2001), and economics, they are not used widely by practitioners in their decisions for enhancing or sustaining competitiveness. Research efforts have brought many interesting perspectives and frameworks at the country, industry, and firm level. The popularity of the competitiveness benchmarking at the country level such as Global Competitiveness Reports, World Competitiveness Yearbooks, and National Competitiveness Reports is an indicator of...