 Defining firm competitiveness: A multidimensional frameworkJustine Falciola, Marion Jansen and Valentina Rollo World Development, 2020, vol. 129, issue C Abstract: Defining and measuring competitiveness remains a subject of interest as well as debate: policy makers need to understand how competitive their country is relative to others, and how their competitive position evolves overtime (Fagerberg & Srholec, 2017). As such, well-known indicators of country performance have been developed over the years. While the business and economic literature recognise that “It is the firms, not nations, which compete in international markets” (Porter, 1998), the existing indices do not asses the capabilities of businesses. This paper fills this gap by proposing a multidimensional framework of firm competitiveness. Through factor analysis, we test the framework using firm level data from the World Bank Enterprise Surveys on over 100 countries. Regression based sensitivity checks confirm that the firm level index built in this paper positively correlates with commonly used proxies of firm competitiveness (i.e. labour productivity, the probability to export, etc.). The framework is applicable to firms of different size and export status. Keywords: Firm competitiveness; Multidimensional index; Factor analysis; Latent variable models (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:129:y:2020:i:c:s0305750x19305066 DOI: 10.1016/j.worlddev.2019.104857 Access Statistics for this article World Development is currently edited by O. T. Coomes More articles in World Development from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.