A model for measuring the international competitiveness of furniture industry in the European Union countries

Abstract

PURPOSE: The main aim of the research was to assess the international competitiveness of the furniture industry in the EU Member States. The article deals with the interpretation and methods of measuring competitiveness at this level of economic analysis.

DESIGN/METHODOLOGY/APPROACH: The study used the measurement model of the international competitiveness of an industry - the proposed methodology allowed for a broad assessment of competitive potential and competitive position. A set of competitiveness indicators and a multidimensional statistical analysis were presented.

FINDINGS: The international competitiveness of the EU furniture industry is diversified. The furniture industries in Poland, Italy, and Germany had the most significant competitive advantage by far. These countries have exceptionally high production potential and big export share.

PRACTICAL IMPLICATIONS: The research can inform furniture manufacturers about the factors that contribute to increase competitiveness. Some strengths and areas for improvement in the operation of the furniture industry from various countries were identified. These may be relevant for building a lasting competitive advantage in the international market.

ORIGINALITY/VALUE: Competitiveness is a category that is relatively rarely studied at the sector level. The present study performs a broad assessment of the furniture industry’s competitiveness, considering both the factor and the result dimensions. The empirical research presented herein has both theoretical and practical value. The employed methodology is universal and can be used to assess various industries and sectors of the economy.