The importance of relocation for the competitive position of an enterprise: the perspective of companies from the clothing and automotive industries located in Poland

The importance of relocation for the competitive position of an enterprise: the perspective of companies from the clothing and automotive industries located in Poland

Marlena Dzikowska

 

 

Keywords:  relocation, delocalization, value chain modularization, enterprise competitiveness

 

 

Summary: Value chain module relocation is nowadays a commonly used business practice. Its popularity is growing not only among companies originating from developed countries, but also among companies from Central and Eastern Europe. However, the attention of researchers and politicians from the latter region is often focused on the realization of particular modules of global value chains, rather than on the optimal integration of geographical and ownership structures of the national enterprises’ value chains. At the same time, there seems to be a demand among entrepreneurs (potential decision-makers of the value chain module relocation use) for the more widespread knowledge of the possibilities offered by relocation, the problems and the consequences they bring, together with empirical evidence for them. The following paper focuses on the links between value chain module relocations and the competitive position of a relocating company. While doing so, it applies the perspective of companies located in Poland and operating in the clothing and automotive industries. In the paper, both secondary and primary sources of information were used. The reasoning applied in the study represents an analytical deduction. The research from the cited works was used as the background to prepare and conduct an empirical study. The paper attempts to explain what drives the importance of value chain module relocation for the achieved competitive position, by the use of ordinary least square regression models. The findings of the study indicate that the importance of value chain module relocation for an enterprise’s competitive position can be partially explained by the importance of relocation for input competitiveness, the number of benefits resulting from those relocations, the competitive position achieved by the relocating company, its age and engagement in export activity. However, while the first three variables in the sample had a positive relation with the importance of relocation for the achieved competitive position, the remaining two had a negative one.

 

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