The diamond approach to the competitiveness of Korea's apparel industry: Michael Porter and beyond

The Korean textiles and apparel‐related industry has played a major role in the country's development; however, this sector's competitiveness is decreasing due mainly to labor costs. As with the country's economic development, the new sources of competitive factors need to be strategically developed and cultivated. The purpose of this study is to explore what constitutes a country's competitiveness in the global apparel market after losing its labor competitiveness and how a country effectively achieves it.

This study employs two competitiveness models, Porter's diamond model and a generalized double diamond model, as a theoretical framework. Along with two theoretical models, this study employs extensive literature reviews, examples of successful firms, and four interviews with field practitioners in the Korean apparel industry.

Beginning with Porter four determinants (factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry), new sources of competitive advantage factors are suggested for the evolving industry. The generalized double diamond model incorporates international activities, which may occur either within a country or outside a country. Utilizing generalized double diamond model, the future directions and solutions for the industry with the identified new competitive factors were suggested.

Based on the models and the identification of new competitive factors, the Korean apparel industry is reviewed, and recommendations are made for its continued growth in the global marketplace. Implications pertaining to the creation of a dynamic self‐reinforcing diamond system were also suggested.