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.

Key competitiveness of Indonesian small wooden furniture business

“…With different wood qualities, such as white teak, as well as rougher carvings, local producers offer relatively lower prices that are affordable for the lower class. This is also supported by literature, which explains that small businesses can survive and compete with large companies because they offer products and services that have not been optimally served by competing producers, such as in price differences (Lukiewska & Brelik, 2021). This is in line with the fact that to serve the needs of the lower classes of society, local producers move to urban areas or, at the district-city level, to districts that are relatively far from urban areas.…”

Effect of European Integration on the Competitiveness of the Agricultural Sector in New Member States (EU-13) on the Internal EU Market

“…The next stage comprised the evaluation of the international competitive position of new member states (EU-13) in comparison with the old ones (EU-15). The competitive position of EU-13 in agricultural trade, compared to other member states of the European Union, was assessed according to the following indicators: share of agricultural export and import of respective EU member states in the intracommunity agricultural export and import of the whole EU, trade balance, share of agricultural export in the total intracommunity export of respective member states of the EU, trade coverage ratio, the Grubel-Lloyd's Intra-Industry Trade Ratio, and the revealed comparative advantage ratio [17,[60][61][62][63]. Some measures occur at absolute values, for example, trade balance, or reflect the share in the EU market, depending on the country's size.…”

Trade war fallout: Exploring the altered landscape of US wooden furniture imports

“…Studies have shown that Asian countries tend to dominate the global wooden furniture trade, followed by European countries (Epede & Wang, 2022). Studies have also highlighted and examined the rise of China relative to traditional producers such as Italy and Germany, and lower income countries such as Poland, Indonesia, and Vietnam (Han et al, 2009; Łukiewska & Brelik, 2021; Nurkomariyah et al, 2019; Polyanskaya et al, 2020), as well as the decline of wooden furniture manufacturing in the United States due to import competition (Gazo & Quesada, 2005; Schuler et al, 2001). Studies specific to the trade war and wood products include Zhang et al (2020), who showed that retaliatory tariffs in China resulted in losses for both US hardwood producers and Chinese consumers but benefited US hardwood consumers through lower prices.…”