PurposeThe literature on large firms in developing countries proposes a link between types of capabilities and diversification pattern. It is argued that technological/organizational capabilities lead to related diversification, and by using contact/general capabilities firms (mostly in developing countries) are able to diversify into unrelated fields. However, in our case, despite the presence of contact/general capabilities, only related diversification is observed. Limitation of the scope of diversification does not allow them to invest in different lucrative businesses. Most successful firms in developing countries have diversified vastly.Design/methodology/approachTo determine out the reason for this behavior in this case, in‐depth interviews based on open‐ended semi‐structured questionnaire with key 12 decision‐makers were carried out. Each interview took about 90 minutes.FindingsThe case study showed that firms' approach to mission development is connected to firm diversification and capabilities. A mission developed based on a strategic approach leads to the development of technological/organizational capabilities, which make related diversification more likely. However, a mission developed based on a philosophical approach when added to firm contact/general capabilities encourages unrelated diversification.Research limitations/implicationsThe research takes for granted the role of national conditions (e.g. macroeconomic indexes) when it is argueed that the behavior of Khodro is expected to be similar to firms in other developing countries (or formerly developing countries, e.g. South Korea). The work presented here could be tested again in two or more firms in a similar environment.Practical implicationsThe paper's findings should help firms in developing countries to develop their mission statement in a way that allows them to grow faster via unrelated diversification. It also informs them about the limitations of a strategic approach to their mission that hinders them from leveraging their contact and general capabilities.Originality/valuePrevious research has not paid enough attention to managerial issues in firms in developing countries. Firms in developing countries need more context‐specific instructions to succeed.
Purpose This study aims to systematically review the economic complexity literature to advance the knowledge on its contribution to building regional competitiveness. Design/methodology/approach In this study, we did a systematic review of 111 relevant papers. In this regard, we did a thematic analysis on all the collected papers, which led to a two-level processed approach. In the first level, the contributions of the reviewed articles have been classified into three main streams. In the second level, the findings under each contribution category are analyzed and explained. This approach led to a thematic network demonstrating economic complexity and the dynamics of regional competitiveness and a set of managerial and policy implications. We followed a multiple processed approach for the systematic review of 95 papers that reveals considerable contributions in three categories, including measurement techniques, criticisms and exploratory studies. Findings Despite some critiques and the undertaken evolution in measurement techniques of complexity, economic complexity has become a well-known method mainly for regions' competitiveness dynamics. Our review demonstrates a nested network of economic complexity dynamics that drives policy advice concerning countries' status in their development path. The provided set of policies includes guidelines for underdeveloped and developing countries and general policy implications, applicable for all regional contexts for building competitiveness dynamics. Originality/value This research contributes to the literature on competitiveness from the window of economic complexity. The study allows a deep understanding of regions' productive structure role in their development and competitiveness. A set of policies for building regional competitiveness is provided concerning the study's findings. The literature gaps are identified, and future research ideas are provided for using economic complexity methodologically and logically to boost regional competitiveness.
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