Theoretical models of business competitiveness: Formation and evaluation

Ausra Liucvaitiene, Kestutis Peleckis, Neringa Slavinskaite, Tadas Limba

Research output: Contribution to journalArticle

Abstract

In this article is made the analysis of theoretical aspects of competitiveness and competitive advantage, and made the assessment of competitiveness research methods opportunities and application. Competitiveness is a complex category so it is not easy to measure and characterize it by several parameters. Competitive advantage is the entity's ability to develop effectively for a long term value that could exceed the value created by competitors, and at the same time to achieve a higher than average profitability of the branch. The literature analysis showed that competition theory of the comparative and absolute advantage can be applied in different levels of economic systems: as for single entity and for the industry, both at regional or national levels. In the fast-changing markets and industries competitive dynamics of environmental conditions require constant monitoring, appropriate management decisions to ensure the growth of effective changes. As internationalization process is takings part in the global economy today, which also is making the impact to the competitive process in which the formation of a new phenomenon come into force - the cooperation changes compatibility of economic and its competitiveness. This leads to a new approach in which competition is not seen as a struggle to destroy the opponent, but like co-operation, based on matches and rivalries. Actors in the shaping of their business strategy, effects on competitiveness, and combining resources in a given environment. So the response to changes in each of the levels will be different because of the different available resources.
Original languageEnglish
Pages (from-to)31-44
JournalStrategic management quarterly
Volume1
Issue number1
DOIs
Publication statusPublished - 2013

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Keywords

  • Competitive advantage
  • Competitiveness
  • Management

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