Greek Manufacturing Industry Research Articles

Location analysis of manufacturing activity in Greece: A point pattern analysis

This paper implements a point pattern analysis using a novel dataset with exact coordinates of statistical data for Greek manufacturing industry. Specifically, the dataset comprises the precise location of 2.452 observations of enterprises including 146.923 employees. For the year 2018 these industries are divided into twenty-four two-digit NACE 2 sub-industries of manufacturing activity. The method of point pattern analysis permits the estimation of the pattern in manufacturing activity across space. The highest agglomeration appears to be taking place in sectors of High (H) technological intensity as well as in the Middle High (M-H) sectors. In addition, sectors belonging to the middle category and the large category according to the number of employees tend to be more agglomerated in space. Findings reveal that the level of concentration or dispersion differs substantially among different sectors underlying the specialization and dispersion of economic activity in the country.

Which factors create export value for firms? A case study on Greek industry in Crisis

Firms, especially in economies in crisis, seek new ways to increase and exploit their competitive advantage and turn to export activity in order to limit their dependence on the domestic markets and achieve sustainability. In this paper, we are examining a crucial question: Which are the main determinants of the export performance of firms? First, Greece is a very appealing case study for our research, especially due to the Crisis that started in late 2009 and has allowed us to pool data from the Greek manufacturing industry before and during that period (2005-2017), and eventually create a sample of 286 firms. Therefore, we attempted to determine the impact of the crisis and the most important factors that create export value for firms. After an extensive research in the literature available, the most widely used financial and non-financial factors have been determined and examined for each and every firm in our sample. By using a dynamic model approach, that is GMM, we concluded that the most productive firms with higher values in both size and sales growth might have been more successful in their export activity, especially during the recession. Keywords: Export Determinants, Export Performance, Financial Measures, Non-Financial Measures, Greek Industry, Financial Crisis, Panel Data.

An Investigation of the Degree of Market Power in the Greek Manufacturing and Service Industries

This paper investigates the degree of market power in the Greek manufacturing and service industries over the period 1970–2007. The markup model developed by Hall (1988) and Roeger (1995) is taken into consideration where market power is expressed as the difference between the selling price and the marginal cost of production. The analysis will be conducted in three steps; the first step estimates the price-cost margin of the manufacturing and services industries over 1970–2007; the second step applies the cross section specification under which the markup ratio is obtained for the 23 manufacturing and 26 service 2-digit ISIC sectors of the panel sample; and the third step estimates the price-cost margin of the manufacturing and services industries for each year over 1973–2007 by employing the Hall-Roeger time series specification. The empirical findings suggest that both industries exert a positive markup ratio; however, the service industry appears to be less competitive than the manufacturing industry.

Deindustrialization: Entries and Exits in Declining Industries: The Greek Experience

Deindustrialization, a developed countries phenomenon, is a process where the industrial activity in a region or in an industrial sector is reduced due to economic or social change. Usually occurs because an industrial activity is no longer economically viable. Economists have made enormous efforts to understand the process of developing markets, but only a few studies have been published for the opposite. This research deals with the disinvestment, the decision making process ending to the market exit. The life cycle law applies in industries as the birth of an idea, to the development and peak and finally the death. Entries and exits in declining industries are interesting; approaching the determinants they dominate the economic decisions. In the introduction, the data derived from official authorities related to the Greek manufacturing industry for a period of twenty (20) years. The classification of all manufacturing sectors, based on certain criteria, leads to the sectors suffering the most from deindustrialization. The study is focusing in the 87 firms (almost all population) of the Textile Dyeing and Finishing sub-sector. An econometric model is built to test three (3) hypotheses and arrive into the conclusions of the determinants affecting entries and exits in the declining industry.

Do pollution abatement expenditures lead to higher productivity growth? Evidence from Greek manufacturing industries

Several environmental concerns are not in favour of Greece’s sustainable future growth while the implementation of differential environmental policies to appoint the Kyoto protocol’s directives requires firms to balance their capital expenditures and operating costs to pollution abatement initiatives. This paper examines the impact of pollution abatement costs of Greek manufacturing over the period 1993–2006 using an industry-level balanced panel. Empirical results indicate that pollution abatement costs have no significant effect on the productivity of Greek manufacturing industries, on a yearly basis, providing no support on the Porter hypothesis stating that stricter environmental regulation triggers industrial productivity. However, significant changes are observed between energy intensive and energy consuming industries with pollution abatement efforts.

Investigating links between low-level inventory practices and business performance

This paper investigates the effects of low-level inventory practices on financial performance in the Greek manufacturing industry by examining past literature reviews and empirical evidences of a primary research. To enhance research reliability, consistency, and validity of the quantitative research a systematic (step-by-step) research design is created to ensure quality in the data collection techniques, data analyses and interpretation, and the links between the literature reviews and the results investigated. The results of this study suggest that there is not a strong link among low-level inventories management practices and financial-based performance indicators even if the manufacturing companies have remarkably applied these practices during the last years. Therefore, it is proved that the examined investigation must be viewed from more business dimensions (such as sales and marketing).

Measuring market power in the Greek manufacturing and services industries

This paper investigates the level of market power in the Greek manufacturing and services industry over the period 1970–2007. Based on the Roeger methodology, we investigate the competitive conditions in the examined industries at a disaggregated level (two and three digit ISIC codes). The empirical results indicate that the Greek manufacturing and services industries operate in non-competitive conditions. Moreover, average mark-up ratios are heterogeneous across sectors, with manufacturing having higher mark ups on average than services. In contrast to other related studies, we provide sufficient evidence about the movements of mark-up ratios over time. According to our findings, the mark-up ratios in the manufacturing sectors are, on average, higher in the post European Union (EU) accession period (1982–1992), as a result of the merger wave in the manufacturing industry. However, this upward trend stopped within the period (1993–2007), and the relevant ratios have decreased substantially. The econometric results are quite robust when the Two Stage Least Squares (2SLS) and the bootstrap method are applied. Lastly, the results of our analysis have a number of interesting implications for policy makers and government officials in light of the recent financial crisis that hit Greece.

Business factors related to manufacturing firms' performance

Purpose: The main goal is to understand the way many factors affect the investment decision making process and business performance. Design/methodology/approach: This study proposes a new conceptual framework for examining the reasons that manufacturing firms decide to invest on the acquisition of new machinery and equipment in order to improve their infrastructure. It incorporates various factors related to the internal business environment (quality management, investment decisions etc.) Findings and Originality/value: A new conceptual framework, establishing the relations between many factors, has been developed, allowing the determinants of adoption of many implications to be discussed and to relate them to the peculiarities of the Greek manufacturing industry. Originality/value: This study presents an overview of the impact of machinery and equipment investment on firm’s performance, giving grasp for further research of the inter-organizational relationships that exist between them.

The impact of corporate entrepreneurship and high-performance work systems on employees' job attitudes: empirical evidence from Greece during the economic downturn

In turbulent times, corporate entrepreneurship (CE) and high-performance work systems (HPWSs) are expected to expand and flourish. However, research on the influences of both CE and HPWSs on employees' job attitudes has generally been neglected. The aim of this study is twofold. First is to investigate the effects of CE and HPWSs on facets of job satisfaction and the three components of organisational commitment. Second is, consistent with the social exchange theory, to examine whether psychological contract act as an important mediator for the CE, HPWSs and employees' job attitudes relationships. Empirical evidence was obtained from 424 employees in the Greek manufacturing industry. Results indicate that both CE and HPWSs positively impact employees' level of job satisfaction and organisational commitment. In addition, we find evidence that psychological contract theory provides a coherent theoretical framework for understanding these relationships. Theoretical and practical implications for HR managers conclude the article.

Measuring the degree of market power in the Greek manufacturing industry

This paper investigates the competitive conditions in the Greek manufacturing industry, estimates the net and the total welfare losses due to the possible existence of market power and investigates factors affecting the market power at sectoral level and over time. The bootstrap method is applied to assign measures of accuracy to the statistical estimates. The empirical results imply the presence of imperfect competition in the Greek manufacturing industry and the existence of welfare losses. Furthermore, the findings indicate that labor intensity, the sector size and the openness influence the market power at the sectoral level and labor intensity, while the number of firms and the openness affect the market power over time.

Investigating Market Structure of the Greek Manufacturing Industry: A Hall-Roeger Approach

This paper investigates the market structure of the Greek manufacturing industry over the period 1984–2007 at the two-digit SIC level. Three models are used to investigate the competitive conditions of the manufacturing industry. The paper investigates factors affecting the markup of the Greek manufacturing industry by estimating two additional models, i.e., the markup cross-sectional model and the markup time-series model, for identifying both sectoral and intertemporal factors. The empirical results indicate that the whole Greek manufacturing industry, as well as each sector of the industry, operates in non-competitive conditions for each year during the period 1984–2007. The findings also support that labor intensity, the sector size, and the number of establishments influence the markup at the sectoral level, while labor intensity, and the growth and the number of establishments affect the markup over time.

Workplace learning and its organizational benefits for small enterprises

PurposeThe purpose of this study is to explore small firm owners' perceptions of the impact of employee training on small firm competitiveness in the context of Greece.Design/methodology/approachThe research adopts a qualitative orientation. Empirical data were collected from 43 owners of small and micro‐firms operating in various sectors of the Greek manufacturing industry through personal semi‐structured interviews.FindingsThe empirical evidence reveals that informal staff training can help Greek small firms face the challenges of the future. More specifically, the interview findings indicated that workplace training can: reduce employee errors in the production process; help small firms to meet skill shortage needs; facilitate the introduction of new technology; and enhance worker employability.Practical implicationsThe paper argues that a key challenge for policy makers and employers in this area is to facilitate informal learning within small firms in order to improve firm performance. In the same manner, work‐integrated learning (WIL) seems to have a vital role to play in the performance of Greek small enterprises since WIL programs have the potential to address skills mismatch issues.Originality/valueThe study brings new insights around the benefits of informal staff training and work‐integrated learning for small and micro‐firm performance in the context of a small European country like Greece, where there has been scant research and very limited understanding.

Are Tax Incentive Provisions Always Operative? Evidence From The Greek Manufacturing Industry

<p class="MsoBodyText" style="text-align: justify; margin: 0in 34.2pt 0pt 0.5in; tab-stops: 387.0pt;"><span style="font-size: 10pt; font-weight: normal; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">Tax incentives have been provided in many countries with the ultimate goal of making the cost of capital cheaper and thus enabling the development process through the increase of investment expenditures. The study of the role of tax incentives in investment spending has been made possible through the use of the neoclassical theory of optimum capital accumulation. This theory has been used in this article to indicate that incentive provisions may not always be operative at the margin, and thus having no effect in<span style="mso-spacerun: yes;">  </span>the formulation of the value of depreciation allowances and further on the value of the implicit rental price of capital. Variations in the value of the user cost of capital can make an investment project cheaper or more expensive in relation to various time periods. This could not be proved for the case of Greece.</span></span><span style="font-size: 10pt; font-weight: normal; mso-bidi-font-style: italic; mso-ansi-language: DE;" lang="DE"></span></p>

Critical barriers to the implementation of close supplier–buyer relationships: the case of Greek manufacturing industry

This article presents the results of an empirical survey aimed at the following: (1) providing data for a factor analysis of the various barriers to the development and implementation of close supplier–buyer relationships and (2) detecting the degree to which the development of a quality system according to the ISO 9000 series of standards can help companies to overcome these barriers. The survey was carried out in Greek manufacturing organisations. The analysis of the results led to the detection of five critical factors, sorted in descending order of criticality. The results also showed that certified companies face less difficulty in dealing with the possible barriers to the development of close relationships with their suppliers.

Supplier management practices in a supply chain management context: the case of the Greek manufacturing industry

In recent years, supply chain management (SCM) has emerged as a powerful tool in the business process management arsenal. However, there are in practice few examples of companies, which have adopted an integrated systems' approach, implementing all aspects of SCM. The purpose of this article is to investigate supplier management practices in the context of SCM. For this purpose, a survey was conducted in the Greek manufacturing industry examining the degree of supplier management implementation in five key SCM categories. Research results, which represent buyers' point of view, highlight the strong and weak areas of supplier management implementation in the SCM context.

Productivity Spillovers and Foreign Direct Investment in the Greek Manufacturing Industry

Firms expand their production abroad if they possess some knowledge-based assets, which, acting as a joint input across plants, give rise to scale economies at the firm level. The scope of this paper is to examine the role of foreign presence in enhancing efficiency, testing first the hypothesis that the ownership structure adopted by the MNFs causes different productivity shifts. Then, productivity spillovers are analyzed and their relationship to the ownership structure is also explored. The research was based on a 4056 manufacturing firms (3840 domestic and 216 foreign affiliates). Research found that the higher the degree of foreign ownership, the more efficient production is. Also, productivity is affected by the existence of financial constraints. Spillovers stemming from foreign affiliates were found most important for the domestic economy, benefiting domestic firms and especially the lower productivity local firms. This finding challenges theory that the degree of foreign involvement does not matter.

An Analysis of Investment Activity in the Greek Agricultural Products and Food Manufacturing Sector

The food and drinks sector occupy first place in Greek manufacturing industry. This paper aims to quantify Greek investors' behavior in processing agricultural products at the sectoral level, to investigate empirically the effectiveness of the EU and national policies concerning investment incentives, by employing a synthesized traditional model. The dynamic model is estimated using alternative panel data methods, GMM and ML. The results are for 1981–1999, for all regions and for nine agricultural sectors. EU and national subsidies exert strong influence on investment decisions. The estimates obtained by ML and GMM are almost identical and there is no evidence for autocorrelation or dynamic misspecification.

Back to basics: The Comanor–Wilson MES index revisited

The present article attempts to investigate the validity of the Comanor–Wilson Minimum Efficient Size (MES) measure. The basic assumption is that firms that have exhausted scale economies are in non-increasing returns to scale. The same firms are also assumed to have a size greater than MES estimated on sales (total turnover), employment or fixed assets. Data Envelopment Analysis (DEA) is used, on a sample of firms in three Greek manufacturing industries, to classify firms in operation according to increasing or non-increasing returns to scale. On the basis of the results of the DEA input oriented model, the MES measure correctly predicts over 85% of the cases. A probit model is applied to those cases that are not identically predicted by MES concerning returns to scale. Results indicate that technical efficiency, size and age are the factors that compel MES to yield the same prediction as the DEA approach.

Determinants of export behavior in the Greek manufacturing sector

This paper examines the determinants of export performance of firms in the Greek manufacturing industry, using cross-sectional data from 1652 firms in 1999 and a Tobit regression model. The study finds that firms that have larger size, lower unit labor cost and low capital to labor ratio have a higher propensity to export, confirming the fact that in Greece, which has the second lowest capital to labor ratio among the EU-15 members, export activities are concentrated among firms with low capital intensity, exactly as the theory of competitive advantage would predict.

The effects of ISO 9001 on firms' productive efficiency

PurposeThis work sets out to explore the effects of ISO 9001 on productive efficiency of firms.Design/methodology/approachA sample of 1,572 firms from three Greek manufacturing industries is used for empirical work. The firms are from the food and beverages industries, the machineries industries as well as from the electrical and electronics appliances manufacturing industries and include both adopters and non‐adopters of ISO 9001. A stochastic frontier methodological approach is adopted and the effects of ISO 9001 can be modeled in four ways: as a managerial input alongside the conventional inputs of capital and labor, as a factor affecting technical inefficiency, as an input and a factor affecting technical inefficiency and as having no effect at all.FindingsISO 9001 operates as a factor affecting technical inefficiency with non‐neutral effects on capital and labor. The combined effect of ISO 9001 with capital increases the level of technical inefficiency reflecting adjustment costs incurred when ISO 9001 is adopted. The combined effect of ISO 9001 with labor decreases the level of technical inefficiency reflecting the positive result of ISO 9001 on reducing x‐inefficiency.Research limitations/implicationsThe analysis isolates the effects of ISO 9001 on capital and labor but specific case studies are necessary in order to reveal managerial best practices that confront negative and support positive effects of ISO 9001 adoption within firms.Originality/valueThe paper illustrates that ISO 9001 is a managerial factor reducing productive inefficiency.