Our View of Competitiveness: System Dynamics

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Competitiveness is linked to the development of a competitive advantage, and is often conceptualized as the capacity of the organization to efficiently amalgamate its resources and capabilities seeking to create value-adding competencies.

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Successful competitiveness does not take place in a vacuum. Businesses perform a wide variety of processes and operate in complex environments. Collecting the necessary inputs is not enough to succeed. Organizations have different strengths and weaknesses, and businesses pursuing a competitive advantage must also demonstrate the ability to alter available resources and capabilities so that their potential can be fully exploited.

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This mix of resources and capabilities is what we consider the drivers of competitiveness. Thus, to us:

Competitiveness is the mutually dependent bundle of ten pillars—human capital, product, domestic market, networks, technology, decision making, strategy, marketing, internationalization, and online presence—that allow a firm to effectively compete with other firms and serve customers with valued goods/services.