Definition of the Key Term
Porter’s Diamond Theory is a theory of competitiveness of the national industry based on four primary components: factor conditions, demand conditions, state of related and supporting industries, and firm strategy, structure, and rivalry.
Article Summary
The article by Fang et al. (2018) presents an assessment of competitiveness in renewable energy resources among Group 20 (G20) countries. In the last couple of decades, renewable energy has become one of the most preferred and ethical sources due to the absence of ecological consequences from its use. The article’s authors performed their research to examine the energy security and development of renewable energy worldwide. The authors acknowledged that the renewable energy industry requires more information on each of the four components of Porter’s theory and revised the theory’s model to suit their needs. According to the article, the conducted research’s result determined that highly competitive countries are China, the USA, UK and Germany, and Denmark (Fang et al., 2018). The authors state that because countries are free to choose the primary source of renewable energy, many complex factors affect the country’s competitiveness. In their recommendations, the authors suggest that implementing and prioritizing the renewable sources strategy into current energy policies could help to improve the international competitiveness level.
Discussion
In the assessment, the authors used Porter’s Diamond Theory to estimate the G 20 countries’ competitiveness in renewable energy resources. However, to provide a thorough reflection of the competitiveness level, the authors used a revised model of Porter’s Diamond Theory. The article emphasizes the universal character of Porter’s theory. According to the authors, many researchers revise the model to fit different issues. Based on the information provided in the article, the most common revisions are Porter-Dunning Model and Porter Value Chain Model (Fang et al., 2018). Porter’s model still presents a comprehensive and practical approach and framework to assess competitiveness.
References
Fang, K., Zhou, Y., Wang, S., Ye, R., & Guo, S. (2018). Assessing national renewable energy competitiveness of the G20: A revised Porter’s Diamond Model. Renewable and Sustainable Energy Reviews, 93, 719-731.
The article presents an evaluation of the worldwide situation of the development of renewable energy. In the research, the authors utilized the revised version of Porter’s theory and applied it to assess the competitiveness level of counties from G20.
Irfan, M., Zhao, Z., Ahmad, M., & Mukeshimana, M.C. (2019). Critical factors influencing wind power industry: A diamond model based study of India. Energy Reports, 5, 1222-1235.
The paper focuses on analyzing and determining key factors that influence the development and competitiveness of the wind industry in India by using the Porter’s Diamond model.
Tsiligiris, V. (2018). An adapted Porter Diamond Model for the evaluation of transnational education host countries. International Journal of Educational Management, 32(2), 210–226.
In the article, the author suggests an adaptation of Porter’s model that fits the purpose of providing a framework for evaluation of the competitiveness of a country’s transnational education and opportunities for exporting higher education.