Small and medium-sized firms' competitiveness and territorial characteristics/assets: The cases of Bari, Varna and Thessaloniki

METAXAS, THEODORE and KALLIORAS, DIMITRIS (2013): Small and medium-sized firms' competitiveness and territorial characteristics/assets: The cases of Bari, Varna and Thessaloniki.

Abstract

The paper investigates the importance of territorial characteristics/assets (i.e. agglomeration economies, urban infrastructure, factors of labor and cost, development policies, qualitative factors, inter alia) on small- and medium-sized firms’ competitiveness. The analysis uses primary data from 374 small- and medium-sized firms located in Bari (Italy), Varna (Bulgaria) and Thessaloniki (Greece). These firms operate in the sectors of industry, commerce and services. Through the use of exploratory factor analysis and econometric analysis, the importance of particular factors for the competitiveness of firms has been analyzed, coming out in valuable conclusions not only for the firms and the areas considered but also for firms and areas with similar characteristics.

• Item Type: MPRA Paper
• Language: English
• Keywords: firms’ competitiveness, territorial characteristics/assets, exploratory factor analysis, econometric analysis
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R50 - General

References

Abdi, Herve. 2003. “Factor Rotations in Factor Analyses”, in Encyclopedia of Social Sciences Research Methods, ed. Michael Lewis-Beck, Bryman, Alan, Futing Tim Liao, 1-8. Thousand Oaks (CA): Sage

Bargegil, Andres and Modrego, Aurelia Rico. 2009. “The impact of research and technology organizations on firm competitiveness: measurement and determinants, DRUIT Society Summer Conference, Copenhagen Business School, 17-19 June, Denmark

Barney, Jay. 2001. “Is the Resource-Based ‘View’ a useful perspective for management research?”. Academy of management review, 26 (1): 41-46

Bayyurt, Nizamettin and Dozu Gokhan. 2008. “Performance Measurement of Turkish and Chinese Manufacturing Firms: A Comparative Analysis”. Eurasian Journal of Business and Economics, 1(2):71-83

Belso-Martinez, Antonio Jose. 2009. “Entrepreneurship policies and new business performance and growth: an empirical analysis based on manufacturing industries”. Environment and Planning C: Government and Policy, 27(2): 195 – 215

Bertan Serkan and Altintas Volkan. 2011. “An Application on the Relation of Managerial Control and Information Technology in Hotels”. European Journal of Social Sciences, 25(1):32-41

Budryte, Alge. 2005. “Corporate income taxation in Lithuanian in the context of the EU”. Research in International Business and Finance, 19:200-228

Chang, Chia-Shih, Yang, Chen-Lung, Cheng, Hsin-Chia and and Sheu, Chwen. 2003. “Manufacturing flexibility and business strategy: An empirical study of small and medium sized firms”. International Journal of Production Economics, 83 (1): 13-26

Chimboza, Denford and Mutandwa, Edward. 2007. “Measuring the determinants of brand preference in a dairy product market”. African Journal of Business Management, 1(9): 230-137

Commission of European Communities, Directorate General for Regional Policies, 1993. New location factors for mobile investment in Europe, Final report in cooperation with Ernst-Young, Brussels, Luxembourg

Costello, B. Anna and Osborne, W. Jason. 2005. “Best Practices in Exploratory Factor Analysis: Four Recommendations for Getting the Most From Your Analysis”. Practical Assessment, Research & Evaluation, 10(7): 1-9

Craglia, Massimo, Leontidou Lila, Nuvolati Giampaolo and Schweikart Jurgen. 1999. “Evaluation of the quality of life in European regions and cities”. European Communities, Belgium.

Cronbach, J. Lee. 1951. “Coefficient alpha and the internal structure of tests”. Psychometrika, 16, 297-334.

Crozet, Matthieu, Mayer Thierry and Mucchlielli Jean-Luis. 2004. “How do firms agglomerate?: A study of FDI in France”. Regional Science and Urban Economics, 34 (1): 27-54

Cunningham, Wendy and Maloney, William. 1999. “Heterogeneity among Mexico's Micro-Enterprises: An Application of Factor and Cluster Analysis”. World Bank Policy Research Working Paper No. 1999

D’Arcy Eamonn and Keogh, Geoffrey, 1999. “The property market and urban competitiveness: a review”. Urban Studies, 36 (5-6): 917-928

Davies, Theresa-Anne. 2001. “Enchancing competitiveness in the manufacturing sector: key opportunities provided by inter firm clustering”. Competitiveness Review, 11(2):4-15

Deas, Iain and Giordano, Benito. 2001. “Conceptualizing and measuring urban competitiveness in major English cities: an exploratory approach”. Environment and Planning A, 33: 1411-1429

Desai, Mihir, Foley, C.Fritz, Hitnes, R. James Jr. 2004. “Economic effect of regional taxes Havens”. NBER Working Paper, no. 10806

Devereux, P.Michael and Griffith, Rachel. 1998. “Taxes and the location of production: evidence from a panel of US multinationals”. Journal of Public Economics, 68 (3): 335-367.

Disdier, Anne-Celia and Mayer, Thierry. 2004. “How different is Eastern Europe? Structure and determinants of location choices by French firms in Eastern and Western Europe”. Journal of Comparative Economics, 32:280-296

Doeringer, Peter, Evans-Klock, Christine and Terkla, David. 2004. “What attracts high performance factories? Management culture and regional advantage”. Regional Science and Urban Economics, 34: 591-618

Doutriaux, Jerome. 2003. “University-Industry linkages and the development of knowledge clusters in Canada”. Local Economy, 18 (1): 63-79

Doutriaux, Jerome and Barker, Margaret. 1995. “The university-industry relationship in science and technology”. Occasional Paper, no.11: 24-31, August, Industry Canada

European Commission 2003. Structural policies and European territories: Competitiveness, sustainable development and cohesion in Europe. From Lisbon to Gothenburg. Luxembourg: Office for Official Publications of the European Communities

Forina, Michele, Armanino, Dominic, Lanteri, Sergio and Leardi, Ricardo. 1988. “Methods of Varimax Rotation in Factor Analysis with Applications in Clinical and Food Chemistry” Journal of Chemometrics, 3: 115-125

Fuller, Crispian, Bennett, J.Robert, Ramsden, Mark. 2003. “Οrganising for inward investments? Development agencies, local government and firms in the inward investment process”. Environment and Planning A, 35: 2025-2051

Galindo-Rueda, Fernando and Haskel, Jonathan. 2005. “Skills, Workforce Characteristics and Firm-Level Productivity: Evidence from the Matched ABI/Employer Skills Survey”. Discussion Paper Series, IZA DR, no. 1542, Bonn, Germany

George, Darren and Mallery, Paul. 2003. “SPSS for Windows step by step: A simple guide and reference. 11.0 update”. (4th ed.), Boston: Allyn & Bacon.

Glaeser, L.Edward, Kolko, Jed and Saiz, Albert. 2001. “Consumer City”. Journal of Economic Geography, 1 (1):27-50.

Graham, J. Daniel. 2007. “Agglomeration Economies and Transport Investment”. Discussion Paper, no.2007-11, Imperial College, University of London, London

Hall, Tim. 1998. “Urban Geography”. N.Y, Routledge eds.

Harrighton, W.James and Warf, Barney. 1995. “Industrial Location, Principles, Practice and Policies”. London, Routledge

Head, Keith and Mayer, Thierry. 2004. “Market Potential and the Location of Japanese Investment in the European Union”. Review of Economics and Statistics, 86, 959-972.

Head, Keith, Ries, C.John and Swenson, Deborah. 1999. “Attracting Foreign Manufacturing: Investment Promotion and Agglomeration”. Regional Science and Urban Economics, 29(2):197-218.

Henderson, J.Vernon. 1986. “Urbanisation in a Developing Country: City size and Population Composition”. Journal of Development Economics, 22, 269-293

Henderson, Rebecca and Cockburn, Iain. 1994. “Measuring Competence? Exploring Firm Effects in Pharmaceutical Research”. Working Paper, no. 3712, MIT, Sloan School of Management

Herrin, N. Alejandro and Pernia, M. Ernesto. 1987. “Factors Influencing the Choice of Location: Local and Foreign Firms in Philippines”. Regional Studies, 21(6):531-541

Herzberg, Frederick, Maunser, Bernard, Snyderman, Barbara. 1959. “The motivation to work”. Wiley, New York

Hope, Cristine and Klemm, S. Mary. 2001. “Tourism in difficult areas revisited: the case of Bradford”. Tourism Management, 22:629-635

Jelenc, Lara. 2007. “Testing Validity and Reliability of Classical and Contemporary School of Strategic Management”. International Journal of Education and Information Technologies, 3(1):172-176

Johansson, Ulf and Elg, Ulf. 2002. “Relationships as entry barriers: a network perspective”. Scandinavian Journal of Management, 18:393-419

Kaiser, F. Henry. 1958. “The varimax criterion for analytic rotation in factor analysis”. Psychometrika, 23, 187-200

Keune, Maarten. 2001. “Regions, regional institutions and regional development”. SEED Working Paper, no.16, International Labour Office, Geneva

Kumar, Rajir and Chadee, Doren. 2002. “International Competitiveness of Asian Firms: An analytical framework”. ERD Working Paper Series No. 4, February, Asian Development Bank

Locke, A. Edwin. 1976. “The nature and causes of job satisfaction. In “Handbook of Industrial and Organisation Psychology”, ed. Dunnette, D. Marvin, 1297-1349, Chicago, Rand McNally

Marlet, Gerard and van Woerkens, Clernes. 2005. “Tolerance, aesthetics, amenities or jobs? Dutch city attraction to the creative class”. Discussion Paper Series, no. 05-33, Tjalling C. Koopmans Research Institute, Utrecht School of Economics, Utrecht University

Maskell, Peter and Malmberg Andres. 1999. “The competitiveness of firms and regions: ‘Ubiquitification’ and the importance of localized learning”. European Urban and Regional Studies, 6: 9-25

McLarney, Carolain. 2001. “Strategic planning-effectiveness-environment linkage: a case study”. Management Decision, 39(10), 809 - 817

Metaxas, Theodore. 2011. “The Entrepreneurial Capacity Of Local Authorities In South-Eastern Europe - An Enterprise Perspective”. Romanian Economic Business Review, 6(1), 18-36

Mukherji, Ananda and Hurtado, Pedro. 2001. “Interpreting, categorizing and responding to the environment: the role of culture in strategic problem definition”. Management Decision, 39(2), 105 - 112

Nachum, Lilach and Keeble, David. 2003. “MNE linkages and localized clusters: foreign and indigenous firms in the media cluster of Central London”. Journal of International Management, 9, 171-192

Nunnally, C. Jum. 1967. “Psychometric Theory”. New York: McGraw Hill

Papadaskalopoulos, Athanasios, Karaganis, Anastasios and Christofakis, Manolis. 2005. “The spatial impact of EU Pan-European transport axes: City clusters formation in the Balkan Area and development perspectives”. Transport Policy, 12: 488-499

Parida, Vinit. 2008. “Small Firm Capabilities for Competitiveness: An empirical study of ICT related small Swedish firms”. Doctoral Thesis, Lulea University of Technology Department of Business Administration and Social Science Entrepreneurship

Parsons, Elizabeth and Broadbridge, Adelina. 2006. “Job motivation and satisfaction: Unpacking the factors for charity shop Managers”. Journal of Retailing and Consumer Services, 13:121-131

Pison, Greet, Rousseeuw, J.Peter, Filzmoser, Peter and Croux, Christophe. 2003. “Robust factor analysis”. Journal of Multivariate Analysis, 84(1):145-172

Porter, E. Michael. 2000. “Location, competition and economic development: local clusters in the global economy”. Economic Development Quarterly, 14:15-31

Redding, Stephen and Venables Antony. 2004. “Economic geography and international inequality”. Journal of International Economics 62(1), pp. 53-82

Rogerson, J. Robert. 1999. “Quality of Life and city competitiveness”. Urban Studies 36(5-6): 969-985

Rogerson, Peter. 2001. “Statistical Methods for Geography”. London: Sage

Rust, T.Ronald and Cooil, Bruce. 1994. “Reliability Measures for Qualitative Data: Theory and Implications”. Journal of Marketing Research, XXXI (February), 1-14

Shangqin, Hong, McCann, Philip and Oxley, Les. 2009. “Innovation in New Zealand: Issues of Firm Size, Local Market Size and Economic Geography”. Working Paper, no.4, Department of Economics, University of Canterbury, New Zeeland

Stathakopoulos, Vlasis. 2005. “Market Research Methods”. Stamoulis (eds), Athens

Trofimenko, Natalia. 2010. “Factors Affecting Location Decisions of the Economic Headliners – Exporters and Foreign-Owned Firms – in China”. Kiel Working Papers, no.1645/ August 2010, Kiel Institute for the World Economy

Twomey, F. David. 2002. “Organisational Competitiveness: Building performance and learning”. Competitiveness Review, 12(2).

Vazquez-Rozas, Emilia. 2009. “Foreign direct investment in the Southern and the new acceding European countries: Replacement of activities?”. Regional and Sectoral Economic Studies, 9(1):117-128

Vickerman, Roger. 1996. “Location, accessibility and regional development: the appraisal of trans-European Networks”. Transport Policy, 2(4):225-234

Wernerfelt, Birger. 1984. “A Resource-based view of the firm”. Strategic Management Journal, 5:171-180 (March)

Wheeler, D.avid and Mody, Ashoka. 1992. “International Investment Location Decisions: The Case of U.S. Firms”. Journal of International Economics 33, 57-76.

White, Halbert, 1980. “A heteroskedasticity-consistent covariance matrix and a direct test for heteroskedasticity”. Econometrica, 48:817-838.

Zhu, Jieming. 2000. “The impact of industrial land use policy on industrial change”. Land Use Policy, 17(1):21-28