Using Porter’s Diamond Model to Enhance Reindustrialisation and Export Performance in Zimbabwe

Abstract

This study sought to enhance Porter’s Extended Diamond Model by incorporating additional elements to better explain reindustrialisation and export performance in the Zimbabwean manufacturing sector. The study sought to identify the relationship between internal organisational factors and export performance in Zimbabwe’s manufacturing sector; evaluate the relationship between macroeconomic conditions and export performance in Zimbabwe; examine the moderating effect of institutional quality on the relationship between reindustrialisation and export performance; and propose an enhanced Extended Diamond Model for reindustrialisation and improved export performance.  Data was collected through a quantitative survey of 384 active manufacturing exporters in Zimbabwe, and analysed using multiple linear regression and structural equation modelling. Findings revealed that internal organisational factors and macroeconomic conditions significantly improved export performance, while institutional quality moderated the foregoing relationship. This provided a basis for an enhanced model for understanding the determinants of competitive advantage in developing economies, offering actionable insights for policymakers and industry stakeholders. The study concludes that Zimbabwe’s reindustrialisation efforts must prioritise organisational capabilities, macroeconomic stability, and institutional reforms to achieve sustainable export growth. The study recommended that exporting manufacturers intensify investment in internal organisational capabilities; the government maintain and enhance macroeconomic stability; institutional reforms be accelerated to improve governance and regulatory quality; the enhanced Extended Diamond Model be adopted and operationalised as a policy diagnostic tool; transport and logistics infrastructure be upgraded to lower trade costs; and export diversification be promoted through market intelligence and trade promotion.