International Business Management (MS34B) Enhancing the Competitiveness of Firms in Small Developing Economies Facilitator: Densil A. Williams MS34B, UWI Mona, Department of Management Studies

Contents Enterprise Competitiveness- Concepts and Clarification The enabling environment for competitiveness Factors that drive competitiveness in the firm Concluding Remarks

Enterprise Competitiveness- Concepts and Clarifications It really looks at efficiency and innovation over a sustained period of time. Efficiency and Innovation eventually leads to increased productivity which is a manifestation of improved competitiveness. The indicators of international competitiveness are:

Enterprise Competitiveness- Concepts and Clarifications The ability of an enterprise to export to an array of countries The ability of an enterprise to engage in FDI using local skills Operations to expected norms of cost, service, operational standards and quality Ability to earn above average returns from competitive market

The enabling environment for improved competitiveness Stable macro environment (especially in small developing economies) Efficient bureaucracy High quality input (human resources, physical resources etc.) Related and supporting industries

Factors that drive competitiveness of firms in developing countries Banking 1. Bank of Nova Scotia Tourism/Entertainment 13. Pulse 14. Sandals 15. Super Clubs Insurance 2. First Life Insurance Company Manufacturing & Marketing 16. Berger 17. Starfish Oils Retail & Distribution 3. Courts 4. Hardware & Lumber 5. Superplus Food Stores 6. Island Grill Communications 18. Gleaner Co. Ltd. Agric/Processed Food & Beverages 7. Lascelle de Mercado 8. Grace, Kennedy & Co. 9. Jamaica Broilers 10. Desnoes & Geddes 11. Lasco Foods 12. Jamaica Drink C. Ltd.

Factors that drive competitiveness of firms in developing countries Banking and Insurance First Life and BNS Focus, R.M. Industry Know, Leadership, International Benchmarking Tourism & Entertainment Sandals, Super-Clubs, Pulse Same as above including innovation, responsiveness to competition, quality focus, factor conditions Retail & Distribution & Communication Courts, Hardware & Lumber, Super Plus Food Stores, Island Grill, Gleaner risk management, aggressive marketing, Agri-Processing, Food & Beverage Lascelles, Grace Kennedy, Jamaica Broilers, Desnoes & Geddes, Lasco Foods, Jamaica Drink Co. branding, work transformation, technology focus, Manufacturing & Marketing (Berger, Starfish Oils) Strategic alliances

Common Competitiveness Drivers Responsiveness to Liberalisation, Deregulation & Competition Super Plus deregulation of food industry Sandals and Super Clubs- Grace, Kennedy & Co. – Financial services. International Benchmarking BNS and First Life – international capital adequacy and prudential ratios Super Plus- Puerto Rico supermarket “The Reunion Effect” (Network Effect) Innovation, Marketing, Quality & Technology Innovation & marketing = Courts, J. Wray and Nephew. Quality (ISO 9000) – Berger Technology- Jamaica Drinks Co. Workplace Transformation and Human Resource Development Grace, Kennedy & Co., Jamaica Broilers, D&G – workplace transformation programmes Effective Risk Management Risk managers: e.g. BNS, Grace, J. Wray and Nephew. Corporate Leadership Encompassing all the above elements

Concluding Remarks The competitiveness of indigenous enterprises in small, open economies is critical for economic growth and development. The enabling environment in these economies must facilitate innovation and efficiency for improved competitiveness.

Concluding Remarks Further, at the firm level, factors such as improved risk management, adroit corporate leadership, innovation etc. are critical for improved international competitiveness. Indeed, the international competitiveness of the firm will require a concerted effort between government and the business sector. It is not a unilateral effort.