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A non-parametric analysis of the effect of the configuration of competitive pillars on competitive efficiency

Krisztina Horváth (Regional Innovation and Entrepreneurship Research Center (RIERC), Faculty of Business and Economics, University of Pécs, Pécs, Hungary)
Esteban Lafuente (Department of Management, Universitat Politècnica de Catalunya (UPC Barcelona Tech), Barcelona, Spain)

Competitiveness Review

ISSN: 1059-5422

Article publication date: 25 May 2020

Issue publication date: 21 May 2021

234

Abstract

Purpose

This study aims to evaluate how the configuration of competitive pillars impacts businesses' competitive efficiency by using a non-parametric model, namely, data envelopment analysis (DEA), with a single constant input.

Design/methodology/approach

The proposed DEA model evaluates technical inefficiency, which results from differences in the availability and allocation of resources, and configuration inefficiency, which we link to differences in the way businesses amalgamate their competitive pillars. The sample includes 115 Spanish businesses operating in manufacturing, construction, retail and knowledge-intensive business services (KIBS) sectors.

Findings

The results reveal that, on an average, firms can improve their overall competitive efficiency by 53.53%. The findings suggest that the configuration of competitive pillars has important implications for efficiency analyses: human capital and strategy are the most relevant aspects shaping competitive efficiency in manufacturing and construction firms; whereas innovation emerges as the most relevant competitive aspect driving competitive efficiency in KIBS firms.

Originality/value

The novelty of this study lies in the analysis of competitive efficiency in a model where efficiency can be explained by overall (industry-specific) competitive efficiency within the industry and by strategic choices on how resources and capabilities are combined within the business.

Keywords

Acknowledgements

Krisztina Horváth acknowledges financial support from the Hungarian Government through the project titled “Sustainable, intelligent and inclusive regional and city models” (grant number: EFOP-3.6.2–16-2017–00017). The project was supported by the European Union and cofinanced by the European Social Fund.

Citation

Horváth, K. and Lafuente, E. (2021), "A non-parametric analysis of the effect of the configuration of competitive pillars on competitive efficiency", Competitiveness Review, Vol. 31 No. 3, pp. 379-396. https://doi.org/10.1108/CR-12-2019-0143

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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