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An Integrated Study of Global Competitiveness at Firm Level: Based on the Data of China

The paper propose a theory framework at the firm level of the sources of global competitiveness and how innovative capability results in the competitive advantage. The framework identifies three interdependent innovative capability dimensions, which offer insight into the sources of sustainable international competitive advantages over time: technological capability, managerial capability and resource exploiting capability. Then the paper analysis the linkage of these three components of innovative capability with firm's competitiveness in an international context, and describes how a firm can develop and sustain competitiveness through the operation in the environment of globalization. Finally, the empirical analysis is done to proves the hypothesis of the interaction pattern between innovative capability and global competitiveness based on data from 213 firms in Beijing area. The study reinforces the importance of innovative capability composition in internationalization decision-making and suggests further research in this context