A cross-country analysis of the effects of firm characteristics and regional factors on small firm competitiveness

Were Henry Obaga: A cross-country analysis of the effects of firm characteristics and regional factors on small firm competitiveness.

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Abstract

This study explores the influence of firm characteristics and regional factors on firm competitiveness of Small and Medium-sized Enterprises (SMEs) using a cross-country analysis of Hungary and the Czech Republic, based on the Resource Based View (RBV) and insights from geographical economics and regional development frameworks. Cross-sectional regression models are used to analyze a dataset of 331 SMEs distinguished along urban and rural divide in the two countries. The findings of the study show that firm size has a positive and significant association with firm competitiveness suggesting the importance of a firm’s scale in harnessing competitive advantage. Firm age relates negatively with firm competitiveness, indicative of the likely inertia challenges faced by older firms thus affecting their propensity to adapt to market dynamics as well as to innovate. While the study fails to validate significance of urban-rural location dichotomy as a predictor of competitiveness, firm agglomeration, measured by the number of firms in regional clusters positively relates to competitiveness, pointing to potential benefits of agglomeration economies. Based on the findings, targeted policy actions that consider the context of the environment in which firms operate are recommended in order to foster firm competitiveness. By adopting a comparative perspective, this study contributes to the understanding of contextual nature of SMEs. The study extends practical insights to firm owners, policy makers and development practitioners for fostering firm competitiveness.

Item Type: Conference or Workshop Item
Heading title: Global business and economic synergies
Journal or Publication Title: Conference in cooperation with the European Association for Comparative Economic Studies
Date: 2025
ISBN: 978-963-688-040-8
Page Range: pp. 114-130
Language: English
Publisher: University of Szeged, Faculty of Economics and Business Administration, Doctoral School in Economics
Place of Publication: Szeged
Event Title: Globalisation, integration, cooperation - what is at stake in the current turbulent times?
Event Type: Conference
Event Location: Szeged
Event Dates: 2024. március 22-23.
Related URLs: https://acta.bibl.u-szeged.hu/87164/
DOI: 10.14232/gtk.nfdsib.2025.7
Uncontrolled Keywords: Regionális fejlesztés, Versenyképesség, Fejlesztéspolitika - regionális, Gazdaságpolitika
Additional Information: Bibliogr.: p. 128-130. ; összefoglalás angol nyelven
Subjects: 05. Social sciences
05. Social sciences > 05.02. Economics and business
Date Deposited: 2025. May. 06. 09:00
Last Modified: 2025. May. 06. 09:00
URI: http://acta.bibl.u-szeged.hu/id/eprint/87238

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