Developing a Competitiveness Index for Manufacturing Firms: Insights from Pakistan

Document Type : Research Paper

Authors

Department of Business Administration, Allama Iqbal Open University Islamabad, Pakistan

10.22059/ijms.2025.378004.676806

Abstract

Assessing and improving the firm's competitiveness is essential in turbulent economic conditions. Factors of the APP model are treated to quantify the competitiveness of PSX-listed manufacturing firms using data from 2010 to 2021. Firstly, principal component analysis is applied to construct individual indices. In the second step, these indices are aggregated to develop a composite index. The results confirmed that each factor of the APP model contributes positively to a firm's competitiveness. However, asset factors are more prominent than process and performance factors. It is confirmed that firm competitiveness remains consistent as firms move from low to highly competitive zones over time.

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Main Subjects


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