ANALYSIS OF COMPETITIVE ADVANTAGES IN A TERRITORY FROM THE POINT OF VIEW OF PORTER'S DIAMOND MODEL: THE POST-HARVEST METAL-MECHANIC PANAMBI/CONDOR-RS CASE

Abstract

The relationship between business competitiveness, cluster of companies, and development of a territory has been long studied. The purpose of this paper is to analyze Porter's Diamond Model in the specific case of the Post-harvest Panambi/Condor-RS Local Productive Arrangement – LPA, in order to identify which determinants of competitive advantages presented in the model take part in the arrangement and how they are perceived. This is an exploratory and descriptive study with qualitative treatment of data. Published articles about business competitiveness and development – highlighting the Diamond Model proposed by Porter – and the situation of the Post-harvest metal-mechanic LPA were recovered. The results presented were analyzed, especially the ones from the LPA's website, Ten-Year Network Development Plan carried out by DIEESE-2014, Gaucha Agency for Development and Investment Promotion's (AGDI) report, and the book presenting the Strategic Planning for the LPA, which are all published in paper and digital format. An electronic questionnaire was forwarded to the companies that participate in the LPA, and interviews with a member of the Management Committee and the CRIATEC/UNIJUÍ Incubator's manager were conducted. Results show that the Diamond Model can serve as an instrument of analysis, considering the context of the mentioned LPA. It can be concluded that the arrangement can be visualized in the first three stages, which are: factor-driven stage, investment-driven stage, and innovation-driven stage. By contrast, it is unclear whether the LPA in is the wealth-driven stage.