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The competitive efficiency of Costa Rican small and medium-sized businesses: a data envelopment analysis approach.
- Source :
-
Competitiveness Review . 2021, Vol. 31 Issue 3, p420-438. 19p. - Publication Year :
- 2021
-
Abstract
- Purpose: Building on the resource-based view theory, this paper aims to evaluate the role of innovation on competitiveness and competitive efficiency among Costa Rican small and medium-size enterprises (SMEs). Design/methodology/approach: The study uses a sample of 231 Costa Rican small and medium-size firms for 2019. The authors compute a competitiveness index that includes four pillars: innovation, strategy, markets and human capital. To estimate competitive efficiency, the authors use a non-parametric model, namely, data envelopment analysis, with a single constant input. Findings: The results confirm that competitive and efficient SMEs present a more homogenous distribution of resources and capabilities. The innovation pillar is positively correlated with competitive efficiency. A positive correlation exists between market experience (business age) and innovation and between innovation and business size in terms of the number of employees. Practical implications: The study contributes to the understanding on how SME managers' decision-making processes affect resource allocation within the business, and on how SMEs can introduce strategic actions based on improvements of those resources that will likely have a greater impact on competitive efficiency. Originality/value: This study contributes to better grasping how the configuration of resources and capabilities, in which innovation plays a decisive role, and contributes to shape the competitive efficiency of small and medium-sized businesses in a developing economy. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 10595422
- Volume :
- 31
- Issue :
- 3
- Database :
- Academic Search Index
- Journal :
- Competitiveness Review
- Publication Type :
- Academic Journal
- Accession number :
- 150385550
- Full Text :
- https://doi.org/10.1108/CR-12-2019-0142