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.

Keywords

Main Subjects

References

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Interdisciplinary Journal of Management Studies
Volume 18, Issue 3
July 2025
Pages 507-523

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