A non-parametric analysis of the effect of the configuration of competitive pillars on competitive efficiency
ISSN: 1059-5422
Article publication date: 25 May 2020
Issue publication date: 21 May 2021
Abstract
Purpose
This study aims to evaluate how the configuration of competitive pillars impacts businesses' competitive efficiency by using a non-parametric model, namely, data envelopment analysis (DEA), with a single constant input.
Design/methodology/approach
The proposed DEA model evaluates technical inefficiency, which results from differences in the availability and allocation of resources, and configuration inefficiency, which we link to differences in the way businesses amalgamate their competitive pillars. The sample includes 115 Spanish businesses operating in manufacturing, construction, retail and knowledge-intensive business services (KIBS) sectors.
Findings
The results reveal that, on an average, firms can improve their overall competitive efficiency by 53.53%. The findings suggest that the configuration of competitive pillars has important implications for efficiency analyses: human capital and strategy are the most relevant aspects shaping competitive efficiency in manufacturing and construction firms; whereas innovation emerges as the most relevant competitive aspect driving competitive efficiency in KIBS firms.
Originality/value
The novelty of this study lies in the analysis of competitive efficiency in a model where efficiency can be explained by overall (industry-specific) competitive efficiency within the industry and by strategic choices on how resources and capabilities are combined within the business.
Keywords
Acknowledgements
Krisztina Horváth acknowledges financial support from the Hungarian Government through the project titled “Sustainable, intelligent and inclusive regional and city models” (grant number: EFOP-3.6.2–16-2017–00017). The project was supported by the European Union and cofinanced by the European Social Fund.
Citation
Horváth, K. and Lafuente, E. (2021), "A non-parametric analysis of the effect of the configuration of competitive pillars on competitive efficiency", Competitiveness Review, Vol. 31 No. 3, pp. 379-396. https://doi.org/10.1108/CR-12-2019-0143
Publisher
:Emerald Publishing Limited
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