Environmental and Managerial Factors in Export-led Development: An Explorative Test of Porter's Competitive Advantage of Nations

Abstract

Traditional economic theory predicts that factor cost advantages, coupled with an open economy, are crucial to the development of an efficient export sector. Porter's recent work has offered a more coherent hypothesis. This study of nontraditional exporters from Central America finds support for Porter's work. External environmental factors per se do not translate into competitive advantage; they do so only insofar as they translate into managerial competencies and appropriate marketing strategies. Policy guidelines are developed from these findings.