Article ID: 0180315a
This paper explores the concept of industrial competitiveness and gets insights on its dynamics and typology through a series of simulations based on the logic of survival analysis. Competitiveness here is defined as a subject’s ability to be selected, including (i) profit performance of firms selected by capital markets, (ii) market (surface-level) performance of products selected by product market, and (iii) productive (deep-level) performance of sites or “genba” selected by firms, which compose a multi-layer structure of competitiveness. We made a set of simulation models based on survival analysis and examined if there are any specific set of parameters that can reproduce the predicted patterns of the four cases mentioned above. We also analyzed the relations between the above-mentioned simulation parameters and found that, as the value of competition intensity increases, genba’s survival rate rapidly decreases and approach from 1 to 0, apparently following cumulative exponential distribution curve. We also found that, when international competition is not intense, the survival rates of genba in the country that is on average less competitive in Ricardian cost competition increases—— what we may call “border-crossing.”
