A framework for building competitive sectoral capabilities in developing countries

Abstract

PurposeThe purpose of this paper is to provide a systematic framework for guidance to developing countries in promoting competitive capabilities in targeted sectors.Design/methodology/approachThis is a conceptual paper that incorporates experiences culled from the literature on national sectoral development (call centers).FindingsMany businesses today are dissecting their value chains and outsourcing functional activities offshore. Beginning in the 1990s, developing countries tried to attract manufacturing (sub) activities such as assembly. More recently, in a deeply interconnected business world, developing nations are fostering sectoral development through a process of attracting offshore activities other than manufacturing to their shores.Practical implicationsMany developing countries are searching for ways to emulate the success of countries such as India to spur economic development. A framework for developing national sectoral competitiveness can benefit policymakers in the public and private sectors by outlining a path toward further economic development.Originality/valueThe paper makes an original contribution by presenting a synthetic framework delineating the steps towards building competitive sectoral capabilities and discussing all aspects of the framework.