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International Competitiveness and the Fourth Industrial Revolution



Objective: The objective of this article is to review the definitions, theories, and drivers of international competitiveness, examine how the Fourth Industrial Revolution (4IR) impacts the competitiveness framework, and build an ecosystematic model of competitiveness in the 4IR.

Research Design & Methods: The analytical work makes reference to the existing literature on international competitiveness, following a SALSA (Search, AppraisaL, Synthesis, and Analysis) approach. The development of competitiveness theories and determinants are examined.

Findings: International competitiveness theories at country, industry, and firm levels, and its macroeconomic and microeconomic determinants are closely related, calling for a systematic approach in a competitiveness study. As a result, this article models competitiveness in the new era of the 4IR using an ecosystematic approach. Policy and managerial implications of the model are discussed following an integrated method.

Implications & Recommendations: Innovation, technological advancement, and relevant policies should be examined and understood in an ecosystematic approach. Future studies should theoretically model different components of the 4IR into the competitiveness framework and empirically examine the impact of 4IR to competitiveness from various aspects.

Contribution & Value Added: This article emphasizes the role of growing reliance on technology. It helps policymakers to re-evaluate national competitiveness by examining a nation’s involvement and response to 4IR and how 4IR may potentially impact productivity and prosperity of a nation. It also deepens our understanding on firm level competitiveness in the age of 4IR and suggests future research direction.


competitiveness, fourth industrial revolution, innovation, diamond model, ecosystematic approach, firm strategy


Author Biography

Chen Liu

Assistant Professor in the School of Business at Trinity Western University (Canada). PhD in Finance from the Smith School of Business at Queen’s University (Canada). Research areas include finance, entrepreneurship, and international business. 


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