Defining international competitiveness: perspectives and pitfalls

Effectiveness of any discourse is critically dependent on a shared and precise understanding of terms. Unfortunately, theory of international competition rarely deals with how specific business contexts affect the way international competitiveness is understood or examines the validity of comparisons between companies representing different forms or stages of internationalisation. This article reviews some of the deficiencies of the relevant theory, discusses various perspectives and pitfalls inherent in comparing levels of competitiveness, suggests analytical framework and criteria to be used in assessing the validity of international competitiveness comparisons and, finally, offers a definition of international competitiveness.