Competitiveness has received attention from researchers, governments and business organizations because of its close association with the success of an entity. The concept of competitiveness can be reported – considering the level of discussion – to a product, firm, industry or sector, region, nation, commercial block or to a global aspect and there is a close connection or relationship between all these levels of competitiveness. In the past decades, many works on competitiveness with different perspectives have been published. But competitiveness is yet an elusive concept, the relevance of which is changing with time. There is a need for a comprehensive review of extant literature on the subject. Key objective of this study is to longitudinally review literature on competitiveness and innovation to identify future sustainable directions. This review—at the interfaces of theory and practice, and fields across disciplines—will help readers understand the gaps and explore opportunities for research projects in new directions. Synthesis of findings at the interface would facilitate pathways to further research and practice to enhance competitiveness across levels and sustainability.
With urge to understand dynamics of competitiveness, research, and experimentation got major boost in the 1990s. Michael Porter (1990) introduced an exciting framework for country competitiveness aimed at redefinition of the foundations of national wealth. Porter’s diamond model was extended to address some limitations.( Porter’s diamond model) Why firms from a particular country are able to create and sustain competitive advantage in a particular industry has been a fundamental question of competitiveness since long (e.g., Porter 1990; Momaya 2001). The answers are of great significance to firms that have strategic intent and must compete in international or regional markets. Relevance of select constructs for competitiveness of firms started attracting research attention. Theories of strategy have provided many useful linkages to address sources of competitiveness.