Competitiveness Of Firms Research Articles

Influence of Digital Transformation on Firm Performance in the Service Industry in United States

Purpose: The aim of the study was to assess the influence of digital transformation on firm performance in the service industry in the United States. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The adoption of digital technologies such as cloud computing, big data analytics, and artificial intelligence has led to improved operational efficiency, enhanced customer experiences, and increased competitive advantage for service firms. These advancements have enabled firms to streamline processes, personalize services, and optimize resource allocation, thereby driving revenue growth and profitability. Moreover, digital transformation has facilitated greater agility and innovation, allowing firms to adapt to changing market dynamics and capitalize on emerging opportunities. However, challenges such as cybersecurity threats, data privacy concerns, and workforce skill gaps remain pertinent, highlighting the importance of strategic planning and investment in digital capabilities. Overall, the findings underscore the transformative power of digital technologies in shaping the performance and competitiveness of service firms in the United States. Implications to Theory, Practice and Policy: Resource-based view theory, institutional theory and dynamic capabilities theory may be use to anchor future studies on assessing the influence of digital transformation on firm performance in the service industry in the United States. Service firms should prioritize fostering a culture of innovation to support digital transformation initiatives effectively. Policymakers should work on creating supportive regulatory frameworks that encourage innovation and investment in digital technologies within the service industry.

Backward Vertical Integration Strategies and Competitiveness of Firms in EPZ Kenya

Purpose: The main purpose of the study was to determine the influence of backward vertical integration strategies on the competitiveness of firms in the Export Processing Zones (EPZ), Kenya.
 Methodology: Both quantitative and qualitative approaches were used in this study, meaning that both descriptive statistics and inferential statistics were employed. Descriptive technique, specifically survey was used in the research design. The target population was all the 137 EPZ firms within Kenya and the sample was drawn from this population. The stratified random sampling technique was used. The EPZ firms are situated within the 74 gazetted zones, out of which 69 are privately owned and operated while 5 are public zones. The quantitative data that was collected was analyzed using the Statistical Package for Social Scientists. Further, the significance level of each independent variable was tested against the dependent variable at 95% level of confidence using ANOVA, regression and correlation techniques. 
 Findings: The findings showed that backward vertical integration strategies had a positive and significant influence on the competitiveness of firms in EPZ, Kenya, at 0.151, p<0.05 and 0.432, p<0.05 when the moderating variable firm size is included.
 Unique Contribution to Theory, Practice and Policy: This study contributes to both the resource-based view and the theory of dynamic capabilities. It lays emphasis on the importance of resources in attaining competitiveness as suggested in these theories. Besides, the study emphasizes the need for firms to have policies aimed at ensuring raw materials supply stability, lower transaction costs and enhanced economies of scale. The findings of this study are significant because the Government of Kenya envisages that the EPZ program is expected to play a critical role in the manufacturing sector contributing 20% to Gross Domestic Product (GDP) by 2030. This will subsequently lead to an increase in employment opportunities, real-value added growth, and foreign direct investment (KNBS, 2022). The study recommends a review by the EPZ Authority in Kenya , of the underlying aim of using backward vertical integration strategies as means of gaining competitive advantage competitiveness and the inclusion of this strategy in the various EPZ firm’s policies and procedures.

Sudden crisis events and firms' stock price fluctuations: A multidimensional heterogeneity perspective

AbstractThis study takes listed companies that have experienced sudden crisis events as samples. The event study method and multiple regression analysis are further adopted to explore the relationship between sudden crisis events and the stock price fluctuations of listed companies from the perspective of multidimensional characteristics. Findings reveal that sudden crisis events have a significant impact on stock price fluctuations. However, the firms' response frequency and response time to crisis events can exert a buffering role in their adverse association. Further analysis shows that the stock price fluctuations also vary with different heterogeneous characteristics including crisis event types, ownership types, firm competitiveness and firm size. The multidimensional analysis targeting the impact of sudden crisis events on the stock market is conducive to helping firms grasp the rhythm of crisis events and further implement some practical and feasible crisis management measures.

ЦИФРОВАЯ ЭКОНОМИКА И РАЗВИТИЕ СЕЛЬСКИХ ТЕРРИТОРИЙ (НА ПРИМЕРЕ СЕРБИИ)

The foundations for the use of ICT in Serbia have already been laid, but the e-business process is not yet well developed. Systematic studies of the impact of the Internet and ICT on competition have not yet been conducted, but the rapid development of these activities as the fastest growing in the Serbian economy indicates that the competition of firms using ICT is quite strong. However, there is a significant difference in the availability of ICT technologies in urban and rural settlements and indicates that digital inequality has not yet been overcome and that all assumptions regarding the (expected) impact of the Internet and the digital economy on faster rural development have not been made. For this reason, it is necessary not only to have a well-thought-out agricultural policy, but also to stimulate the availability of ICT throughout the country, especially in rural areas.

The future of competitive advantage in Oman: Integrating green product innovation, AI, and intellectual capital in business strategies

This study delves into the dynamics of green product innovation, artificial intelligence (AI) adaption, and intellectual capital, investigating their impact on the competitiveness of firms in Oman. It emphasizes the crucial role of government intervention and R&D investments in this process. Based on the responses of 214 top managers in Oman, the research employs structural equation modeling to analyze the intricate relationships between these factors. The findings underscore a significant positive correlation between green innovation, AI implementation, and intellectual capital, with government involvement and R&D investments as vital moderators. This study provides a novel perspective on the synergy of technology, innovation, and intellectual capital in developing economies. It offers essential insights for business leaders, policymakers, and scholars, highlighting the necessity of integrating advanced technologies and sustainable practices in business strategies to achieve competitive advantage. The research adds to the existing body of knowledge on innovation and competitiveness. It offers practical implications for enhancing firm performance in Oman and similar emerging markets.

The role of the state in shaping the internationalization of firms in the twenty-first century

The year 2020, with the outbreak of the COVID-19 pandemic and the subsequent crises, highlighted the significance of state intervention in shaping firm competitiveness. However, unprecedented government support for businesses has left us puzzled about the state’s role in firm internationalization, especially in emerging markets and the Global South, where government involvement has been accompanied by democratic backsliding and rising authoritarianism. Our Special Issue moves the current debate forward by exploring how the state’s changing role affects firm internationalization. The objective of this editorial is twofold: stimulating theory development by scrutinizing state intervention in emerging markets in recent decades and introducing the Special Issue articles. Contributions investigate how governments support the internationalization of their domestic businesses by focusing on firms’ institutional embeddedness and the impact of institutions as both resources and constraints to their internationalization. By linking the discourse on state capitalism with business internationalization, our empirical studies advance research on political economy and the state’s role in innovative ways, reflecting on recent geopolitical developments. Our introductory article situates the Special Issue papers in the state capitalism and firm internationalization literatures and discusses their implications for future research.

Service System Innovation and Competitiveness In an Emerging Market: The Moderating Role of Managerial Competencies

This study empirically examines the correlation between service system innovation and competitiveness in Nigeria, an emerging market, by focusing on the country’s mobile telecommunications sector. The moderating effect of managerial competencies was also tested. Due to the contribution of the telecommunications sector to the economic well-being of Nigeria and the world’s economy at large, the sector witnesses a high level of competition among its players, resulting in unsustainable price wars, negatively impacting the telecommunication firms and their ability to invest in service improvements. Thus, there is a need for a study into the factors affecting competitiveness in the telecommunications sector. A cross sectional survey was used because the study explored the relationships between service system innovation, managerial competencies and competitiveness. The study used a survey instrument, which was sent to 450 respondents using Google Forms, out of which 230 responded. The 230 returned copies represented a 51.1 percent return rate, which satisfied the minimum required return rate for a cross sectional study. The study’s hypotheses were tested using the partial least squares structural equation model (PLS-SEM). The finding revealed that service system innovation (idea development, service development and commercialization) enhances the competitiveness of mobile telecommunication firms. Thus, an increase in idea development, service development and commercialization is essential for a competitive advantage. Also, managerial competencies were found to significantly moderate the relationship between service system innovation and competitiveness. The study provides a new insight into how service system innovation affects the competitiveness of telecommunications companies, particularly in emerging markets, with Nigeria as the focal point. It also shows the role managerial competencies play in the telecommunications sector. This study offers proof of the traits of service system innovation, managerial competencies, and competitiveness in the telecommunications sector. It also developed and tested a scale for measuring these variables, which future studies could adopt.

Horizontal Integration Strategies and Competitiveness of Firms in EPZ Kenya

Global challenges have given a rise in levels of competitiveness among industries that produce similar or related goods and services. One possible solution to this is the use of horizontal integration strategy to ensure efficient production. This study therefore intended to determine the influence of horizontal integration strategy on the competitiveness of EPZ firms. The study was guided by two theories, namely; the resource-based view theory and the transaction economic cost theory. The study adopted the use of a questionnaire. Both quantitative and qualitative approaches were used. Descriptive technique, specifically survey was used in the research design. The target population was all the 137 EPZ firms within Kenya and the sample was drawn from this population. The stratified random sampling technique was used. The EPZ firms are situated within the 74 gazetted zones. The quantitative data that was collected was analysed using the Statistical Package for Social Scientists. Further, the significance level of each independent variable was tested against the dependent variable at 95% level of confidence using ANOVA, regression and correlation techniques. The findings of this study indicated that horizontal integration had a positive and statistically significant relationship with the competitiveness of firms in EPZ Kenya. This study recommends the inclusion of horizontal integration in the strategic plans of the different EPZ firms. This will subsequently lead to an increase in employment opportunities, real-value added growth, and foreign direct investment (KNBS, 2022). In conclusion, from the analysis of findings, horizontal integration is significant for competitiveness of firms in EPZ Kenya.

Competitive Demand Learning: A Noncooperative Pricing Algorithm with Coordinated Price Experimentation

We consider a periodical equilibrium pricing problem for multiple firms over a planning horizon of [Formula: see text] periods. At each period, firms set their selling prices and receive stochastic demand from consumers. Firms do not know their underlying demand curve, but they wish to determine the selling prices to maximize total revenue under competition. Hence, they have to do some price experiments such that the observed demand data are informative to make price decisions. However, uncoordinated price updating can render the demand information gathered by price experimentation less informative or inaccurate. We design a nonparametric learning algorithm to facilitate coordinated dynamic pricing, in which competitive firms estimate their demand functions based on observations and adjust their pricing strategies in a prescribed manner. We show that the pricing decisions, determined by estimated demand functions, converge to underlying equilibrium as time progresses. We obtain a bound of the revenue difference that has an order of [Formula: see text] and a regret bound that has an order of [Formula: see text] with respect to the number of the competitive firms [Formula: see text] and [Formula: see text]. We also develop a modified algorithm to handle the situation where some firms may have the knowledge of the demand curve.

The link between management accounting information systems and firm competitiveness: The mediating role of innovation capabilities

The link between management accounting information systems and firm competitiveness: The mediating role of innovation capabilities

Sustainability Innovation, Firm Competitiveness, Export Performance, and Sales Growth: A System Dynamics Approach

Sustainability Innovation, Firm Competitiveness, Export Performance, and Sales Growth: A System Dynamics Approach

International Competitiveness of Asian Firms: An Analytical Framework

International Competitiveness of Asian Firms: An Analytical Framework

The role of dynamic capabilities and innovation on the competitiveness of the manufacturing firms in Indonesia

This study seeks to explore how dynamic capabilities and innovation impact competitiveness within the Indonesian manufacturing sector. It specifically investigates how Domestic Component Level (DCL) certification, influenced by government involvement, mediates this relationship. The focus is on how government support shapes the certification process, ultimately affecting competitiveness. Through quantitative methods and surveys conducted among 344 manufacturing firms holding DCL certification in Indonesia, the research finds that while enhanced dynamic capabilities may not directly correlate with increased competitiveness, they play a crucial role in a company's journey toward competitiveness, requiring a gradual process. Additionally, companies with higher DCL values are better positioned to compete for government contracts and services.

Competition of multiplatform firms: Implications for the Internet of Things.

The Internet of Things (IoT) technology trend is transforming business and society. This creates a need to understand strategic behavior in the consumer IoT, where firms tend to offer multiple platform devices, and new generations of devices are introduced frequently. We propose a novel analytical model that formalizes the concept of a multiplatform firm that offers a system of platforms, such as a smartphone, and a new platform device, such as a smartwatch, and orchestrates a multiplatform ecosystem. The analysis shows how a platform design decision, like offering a new standalone device, affects consumer choices and market outcomes. We identify two classes of new devices that matter, and show when a new platform device may disrupt the smartphone market. Moreover, we characterize conditions under which it is profitable for a vendor to make its new platform device look and feel more like its smartphone. Overall, we provide insights into how multiplatform firms differ from platform firms. We identify future research opportunities on the economics of consumer IoT and multiplatform ecosystems.

Internationalization of firms: The impact of “Made in Albania” on strategic decisions

This study focuses on the specific case of Albanian firms operating in the fashion industry and examines the significance of the “Made in Albania” label in their internationalization endeavors. It seeks to analyze the challenges and opportunities these firms encounter throughout the internationalization process, shedding light on the dynamics of the global fashion market. Multiple case studies are used in this investigation, focusing on Albanian firms that brand their products with the “Made in Albania” label. By employing a qualitative research approach, this study aims to provide an understanding of the factors influencing the internationalization efforts of these firms. Through in-depth interviews, document analysis, and on-site observations, the research explores the strategic decisions made by these companies in leveraging their national identity for global success. The findings of this research contribute to both academic discourse and practical insights for businesses seeking to investigate the complexities of internationalization. By analyzing the multifaceted nature of the “Made in Albania” label’s impact, this study offers valuable recommendations for policymakers, industry stakeholders, and business leaders aiming to enhance the global competitiveness of Albanian firms in the fashion sector. The integration of these elements not only adds value but also reinforces the cultural authenticity of Albanian fashion.

Innovation Strategy and Firm Competitiveness: A Framework to Support the Holistic Integration of Eco-Innovation

Innovation Strategy and Firm Competitiveness: A Framework to Support the Holistic Integration of Eco-Innovation

Enhancing the Competitiveness of Enterprises Through Creativity in a Global Economy

This paper covers a comprehensive study of creativity as a means of enhancing the competitiveness of enterprises in a global economy. The article is intended to describe globalization issues and opportunities faced by enterprises today. The era of services and innovation has replaced traditional production, marking the transition of society to the knowledge-based economy, where creativity plays a crucial role. Correspondingly, this research is aimed at determining the importance of creativity for enterprises by justifying a wide range of aspects covered by it. Significance of creativity for entrepreneurship is demonstrated with help of analysis of creativity through intensive processes of McDonaldization and Disneyization as well as one of top skills, which helps businesses to increase efficiency and take advantage over competitors. The article presents the way how an enterprise can acquire a competitive advantage through creativity. The research concludes with conceptualization of the study of entrepreneurial creativity to nurture the competitiveness of companies and firms.

A Study of Competitiveness in Logistics Firms in Vietnam

Objective: This study aims to evaluate the competitiveness of logistics firms in Hanoi and neighboring provinces in Vietnam, and compare respondents' assessments of competitiveness in logistics firms. Method: The sample size in this study was adjusted to the regression model. The research sample consists of 225 respondents working for logistics firms in Hanoi and neighboring provinces. We designed a questionnaire related to the competitiveness of logistics firms. We determined the observed variables (scales) of the competitiveness of logistics firms based on previous studies and expert interview results. We use both qualitative and quantitative research methods, including reliability analysis through the Cronbach alpha coefficient, EFA analysis, the independent T test, and ANOVA analysis. Results: The findings in this study prove that four attributes of the competitiveness of logistics firms are quite high. All the attributes of the variables are statistically significant. There is no statistically significant difference in the competitiveness of logistics firms between these different marital statuses, work locations, career seniority, and job positions. Conclusions: This research broadens our understanding of the importance of the competitiveness of logistics firms in Hanoi and neighboring provinces in Vietnam. This research has expanded the competitiveness of logistics firms in Hanoi and neighboring provinces in Vietnam as an activity with profound business performance impacts. This study can be a basis for other research works and policy design oriented to achieve a comprehensive measurement of business performance and make business strategy in the firm. The results of this study are expected to contribute to the development of business administration science, especially in the logistics sector.

How to assess the intellectual capital of firms in uncertain times: a systematic literature review and a proposed model for practical adoption

PurposeIntellectual capital (IC) plays a crucial role in today’s volatile business landscape, yet its measurement remains complex. To better navigate these challenges, the authors propose the Integrated Intellectual Capital Measurement (IICM) model, an innovative, robust and comprehensive framework designed to capture IC amid business uncertainty. This study focuses on IC measurement models, typically reliant on secondary data, thus distinguishing it from conventional IC studies.Design/methodology/approachThe authors conducted a systematic literature review (SLR) and bibliometric analysis across Web of Science, Scopus and EBSCO Business Source Ultimate in February 2023. This yielded 2,709 IC measurement studies, from which the authors selected 27 quantitative papers published from 1985 to 2023.FindingsThe analysis revealed no single, universally accepted approach for measuring IC, with company attributes such as size, industry and location significantly influencing IC measurement methods. A key finding is human capital’s critical yet underrepresented role in firm competitiveness, which the IICM model aims to elevate.Originality/valueThis is the first SLR focused on IC measurement amid business uncertainty, providing insights for better management and navigating turbulence. The authors envisage future research exploring the interplay between IC components, technology, innovation and network-building strategies for business resilience. Additionally, there is a need to understand better the IC’s impact on specific industries (automotive, transportation and hospitality), Social Development Goals and digital transformation performance.

On the positive relation between the wage share and labor productivity growth with endogenous size and direction of technical change

This paper combines induced innovation and endogenous growth to investigate two issues: the relation between the wage share and labor productivity growth and the potential influence of the saving rate on the steady state wage share. We assume that myopic competitive firms choose the size and direction of technical change to maximize the growth rate of profits. First, we find technological conditions sufficient to ensure that labor productivity growth is a positive function of the wage share. Second, we show that the steady state wage share depends on the saving rate if, and only if, R&D investment affects the marginal rate of transformation between labor and capital productivity growth. Both results have important policy implications as they clarify under what conditions any factor affecting the wage share or the saving rate will have an impact on labor productivity growth or steady-state income distribution.