Dynamic synergy analysis in international business: the concept and application to two players China and Russia

Abstract

There are two ways to conduct economic, and possibly political, business between countries. The first is conventional search for country present day competitive advantage (Porter, 1990). Yet competitive advantage is transient, not sustainable (Forbes, 2.6.2013). And competitive advantage could relate to yesterday’s industries not today’s arenas. A more plausible search is that for strategic synergy or a situation where the two countries whole is greater than the sum of individual country parts. The later, the synergy route, places emphasis on strategic longer term complementarity or synergy between the two countries rather than a transient advantage.

The following article addresses the second scenario.

It projects a model for the identification of the term driving forces of two economies, tracing their respective future synergies and deriving synergy-rooted strategies. The article goes on to apply the model to two countries: China and Russia, being contemporary illustrations of a largely politically driven search for economic synergy.

The model could have conceptual as well as applied dimensions. Conceptually, it provides a theoretical framework for present day international business concepts. Operationally it could lead to specific strategies, and venues, for economic and business engagement between countries.