Final Thesis Propositions 2004

1.3. Thesis Propositions.

Proposition 1 Government has played, and is continuing to play, a decisive role in the development and structure of the global textile industry.

Proposition 2 Government is a direct and indirect component of firm, industry and national competitive advantage, and should be included in the relevant strategic management theory.

Proposition 3 Political, non-commercial, principally government activities produce externalities that impact, positively and negatively, upon firms in the form of political advantages and political disadvantages (PAs and PDs).

Proposition 4 PAs and PDs impact on firms asymmetrically because of their unique structures and networks. Some firms gain politically-derived competitive advantages (PCAs) over others. PCAs are a subset of firm-specific advantages (FSAs) and operate over a wide variety of time horizons.

Proposition 5 PCAs are firm-specific competitive advantages and can be efficiency-based, or non-efficiency, shelter-based.

Proposition 6 In their quest for sustained, and stable, strategic competitive advantage firms may try to internalize and endogenize political advantages into PCAs.

 Proposition 7 Successful firms develop firm-specific advantages, FSAs, including PCAs, that are manifested as superior returns and can be quantified.

 

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