Analysis On Company's International Competitiveness In Network Economy

Although great achievements have been made in the Chinese economy for the past decades, the overall international competence of the country ranked around the thirtieth among the enrolled countries, under the evaluation of International Institute of Management &Development of Switzerland from 1997 to 2002. Its micro competence (company' s competence) is even lower, with the trend of declining. It' s therefore tremendously important to study how to leverage the international competence of a company in the current economic environment.The network economy has influenced a lot the execution of a company, in terms of strategy, management, operation and organization, which brought new contents to the company' s competence. In the meanwhile, It provided new opportunities for a company to raise its international competence in this network environment, compared to in the traditional economy.The "diamond" model of the source of competence raised by Michael E. Porter in his book of "The Competitive Advantage of Nations" can be a good framework for competence analysis. This article will analyze the points of the model in both traditional and network economy, compare them between the two environments, identify the new attributions in the network environment and how they affect the competence of a company, so as to find the way to strengthen the international competence of companies.The article consists of 3 parts. Part one, which includes preface and chapter 1, briefs the status of the international competence study, the concept of network economy and its influence to traditional economics theory, and Porter' s "Diamond" of a nation' s competitive advantage. Part two, covering chapter 2 to 6 and being the core of the paper, analyzes the key components (key element conditions, demand factors, relevant and supportive industries, enterprise strategy and organization, and the government) of Porter' s "diamond" model. Part three, consisting of chapter 7, provides the ways to raise the company' s international competence in network environment based on the reality of Chinese economy...