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CAL BACKGROUND

The theoretical background in this paper involved competitiveness referred to Porter (1990) explains the advantage of a national competition in which he attempts to answer the main question is the reason why some nations succeed in particular industries than others. He identified four of attributes country. (Which he called national diamond) that provide the basis for a national platform for the competitive advantage of nations. These are the terms and conditions. However, Porter (1990a) distinguishes between the following categories: human resources, physical resources, knowledge resources, capital resources and infrastructure. Furthermore, Porter (1990) has developed a comprehensive approach to national competition called diamond model. The diamond was extended in two directions; one is the integration of activities across the state through the introduction of the double diamond model (Rugman 1991; Moon, Rugman, and Verbeke 1998; Dunning, 2003). The other than the role of human factors is through the nine-factor model (Cho 1994). This paper forms to nine factors which, it also led to the inclusion of multinational activity as suggested with the double diamond.

However, the country who have different characteristics are both IMD and WEF report ranked each country as national competitiveness overall only. As reason, the competitiveness with a different source in each national, which supporting resources or factors depending on the situation that criteria and procedures as different development. Therefore, it is necessary for the theoretical prerequisites are competitiveness that theory is supposed to comprehensive and sufficient to capture more than one variable. As well as, the theory is explaining increase the complexity of the real world. Moreover, theory supposed is dynamic and sufficient to explain the national characterize change. Especially, Porter’s diamond model meet both conditions that of comprehensive to consisting four factors. Addition, Porter's diamond model is suggests that dynamic with national competitiveness; but it not growing out of resources. However, it can be generated by integration of alternative strategies with four factors as diamonds model (Cho & Moon, 2005).

2.2 THE COMPETITIVENESS

The definitions of competitiveness are different (OECD, 1996; WEF, 2009; IMD, 2009; Lall, 2001; and Porter, and Kramer, 2002) which able concluding and processing that most of the definitions based on analytical capabilities in three aspects as input, process, and output (Hamalainen, 2003). Hence, defined competitiveness appropriate is integration OECD, WEF, and IMD without the definition of Porter and WEF is a framework to develop competitiveness of the micro level, otherwise, the OECD and IMD framework is to develop a macro level.

Both IMD and WEF reports have different perspectives on the definition of competitiveness and format development through many years. In the case of IMD competitiveness is defined 'The ability of the country to generate value added and increase the wealth of nation' which meaning to GDP and productivity as a proxy for competitive; but specified IMD competitiveness is not only developing of GDP and productivity (IMD, 1996). In contrast, WEF is defined GDP and/or productivity as a proxy for the competitive that definition is 'The ability of the national economy to achieve a higher rate sustainable of economic gr