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Firm competitiveness: A general model and a manufacturing application

★ ★ ★ ★ ☆

Overview

Paper Summary › Explain Like I'm Five › Conflicts of Interest › Identified Limitations › Rating Explanation › Good to know › Topic Hierarchy › File Information ›

Paper Summary

Paperzilla title
Hungarian Factories: Being Adaptable Beats Just Being Good

Dynamic production capabilities (adaptability) positively influence firm competitiveness, but ordinary capabilities (operational efficiency) do not. Diminishing returns from dynamic capabilities exist, meaning firms with already high ordinary capabilities gain less from further increasing dynamic capabilities.

Explain Like I'm Five

Scientists found that companies that can change and invent new things do better than those who just do the same old things really well. But, if a company is already super good at what it does, being even more flexible doesn't help as much.

Possible Conflicts of Interest

None identified

Identified Limitations

Limited generalizability due to single country
The study focuses on a single country, which may limit the generalizability of results due to country-specific factors.
Limited generalizability due to sample
The survey data is from a relatively small and potentially non-representative sample of Hungarian manufacturing firms, limiting the generalizability of findings.
Potential bias in survey-based measurement of capabilities
Perceived capabilities were assessed through manager surveys, which may introduce bias if not all managers have accurate insights, or if there is pressure for favorable responses. This may influence reported relationships with performance.
Limited control for other firm-specific factors
The authors only control for firm age and size as potential confounders. It is possible that other firm-specific factors influence the relationships between capabilities and competitiveness.

Rating Explanation

This study provides interesting insights into the relationships between production capabilities and firm competitiveness using a unique dataset and methodology. However, some generalizability limitations due to the sample and context exist, preventing a top rating.

Good to know

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File Information

Original Title: Firm competitiveness: A general model and a manufacturing application
Uploaded: July 14, 2025 at 07:00 AM
Privacy: Public