Measuring Company Competitiveness

The Complex South-Transdanubian Regional Competitiveness Research was a questionnaire-based research in 2005-2007 with the main goal of measuring competitiveness. Competitiveness can be defined by many people. It is possible to interpret it by region, industry, company or product. During the research we investigated the competitiveness on company level, so those factors which affect the competitiveness of a company. The research team developed a Competitiveness Index, which classifies the competitiveness of companies into different categories. Discriminant analysis was used the test the Index, multivariable logistic regression to examine the different competitiveness groups. When creating the index we took into consideration the changing of target markets, we matched self-maintainment with adaption to changes. We included research and development (as an indication of innovation), and the rate of marketing budget. We identified the existence of strategic alliances as company networking is a competitiveness raising factor for small and medium-sized enterprises. Further variable included was workforce fluctuation, since motivation and employee satisfaction is in very close relationship with it. Eventually the variables of the Competitiveness Index became the following: research and development, changing of target markets, adaption to changes, rate of marketing budget, participation in strategic alliances, workforce fluctuation. With the help of the Competitiveness Index we created three categories of companies participating in the research. The variables of the competitiveness index created by this way have become the following: falling behind, average, leading. The Index described above can be used to measure regional relative company competitiveness, and with the help of it, it is possible to give practical advice to develop companies. From academic view the Index is one possible way to measure micro-level competitiveness; furthermore two new subjects were born from the result of the research in the University of Pécs, Faculty of Economics.