A FIRM-LEVEL STUDY OF THE INTERNATIONAL COMPETITIVENESS: THEORETICAL ANALYSIS AND EMPIRICAL FINDINGS

An analytical framework for conceptualizing the issue of international competitiveness at the firm level is presented taking into account that the firms are increasingly being exposed to international competition. The model identifies three interdependent innovative capability dimensions, which offer insight into the sources of sustainable international competitive advantages over time: Technological capability, managerial capability and resource exploiting capability. The paper presents the challenges of these three components of innovative capability in an international context, and describes how a firm can develop and sustain competitiveness through the operation in the environment of globalization. Finally, based on data from 213 firms in the Beijing area, the paper proves that these three innovative capability components are closely related to international competitiveness. The study reinforces the importance of innovative capability composition in internationalization decision-making and suggests further research in this context.