Greek manufacturing firms: low skills, low wages and low profitability

Abstract

Purpose

Skills are increasingly identified by policy makers throughout the world as a central means to address social and economic challenges. The present study aims to look specifically at the Greek economy and evaluate through an extensive literature review the effectiveness of skill development strategies adopted by small manufacturing firms as a result of their chosen business strategy. The study seeks to explore whether the existing skill development strategies can ensure the future viability of small firms or not.

Design/methodology/approach

Various types of secondary data were used in this study (e.g. journal articles, books, government publications including industry statistics and reports) to outline the importance of a high‐skills strategy if living standards in advancing economies like Greece are to be improved and critically evaluate the existing skill development strategies of small industrial firms.

Findings

The study argues that the low‐skills strategy favored by most Greek small industrial firms can no longer ensure their survival. Therefore, a number of policy measures should be put forward to encourage small firm owners to move towards a high‐skills business model.

Practical implications

The study helps policy makers to take the required action in order to create a business environment in Greece that encourages the adoption of a high‐skills, high‐quality product strategy by small firm owners.

Originality/value

The study brings new insights around the effectiveness of cost‐cutting strategies in the context of an advancing country.

Citation

Panagiotakopoulos, A. (2012), "Greek manufacturing firms: low skills, low wages and low profitability", Journal of Business Strategy, Vol. 33 No. 2, pp. 31-37. https://doi.org/10.1108/02756661211206726