What Drives International Competitiveness? An Empirical Test in Emerging Indonesian Market
Prasetyo Heru Aries
Keywords:
competitiveness, multinational companies, firm performance, internationalization, emerging market,
knowledge management
Abstract:
This study tried to identify factors which drive international sustainable competitive advantage
using Indonesian listed-multinational companies. The study began with identifying the terminology
for emerging market using a single index model. We then deployed the three measurements
for competitive advantage which are return on sales, return on asset and return on equity.
Our results showed that all three measurements have the power to explain each competitive factor
for Indonesian multinational firm, but statistically, ROA showed as the best proxies. Moreover,
eight out of ten hypotheses tested were strongly supported by the data. The study strongly
emphasized the importance of knowledge management, local leadership and a factor of location
as vital drivers for global competitive advantage. Lastly, the study also stressed the importance of
globalizing subsidiaries in order to gain sustainable competitive advantage for the host country.
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10.7441/joc.2016.04.08
Prasetyo, H. A.(2016)
What Drives International Competitiveness? An Empirical Test in Emerging Indonesian Market.
Journal of Competitiveness,
8 (4), 124-139 https://doi.org/10.7441/joc.2016.04.08
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