Two‐dimensional governances and industrial international competitiveness

Purpose - Massive increases in international trade and investment extend industries beyond national borders, so states and enterprises have become the two critical players in the boundary of industries. The purpose of this paper is to provide a new conceptual framework to analyze the role of states and enterprises in enhancing the industrial international competitiveness (IIC). Design/methodology/approach - Being a research‐based paper, the topic is approached by theoretical analysis and conceptual development. The paper reviews IIC literature and argues for a rational study ICC in the context of global value chain. Next, the paper puts forward a two‐dimensional governance model and five typical governance systems of the industries of developing countries. Examples of typical governance system are given based the practice of Chinese industries, such as appeal, rare earths, automotive, etc. Findings - This paper constructs an industrial two‐dimensional governance model of the developing countries in the context of global value chain based on the interaction between industry governance and market governance, and also presents five typical governance systems – free to market, public governance, industrial governance, joint governance and network governance. Different governance system reflects different roles of states and enterprises played in the global value chains and result in different IIC in the end. Research limitations/implications - The limitation is based primarily on methodology. The two‐dimensional governance model provides target‐oriented guidance for foresting international competitiveness of different types of industries. Future studies should include more in‐depth case studies on different governance system. Originality/value - The paper presents a framework of the industrial two‐dimensional governance model, which emphasizes the important role of both states and enterprise in the IIC in the context of global value chain.