Financial Instruments to Improve the Competitiveness of Enterprises

Abstract

Against the background of globalization and the deepening struggle for international markets, competitiveness is among the most important indicators describing the performance of an enterprise. The purpose of this study is to create a methodology for assessing the level of competitiveness of enterprises. The proposed methodology is based on a dual model integrating the parametric and nonparametric methods for assessing the effect of using the financial mechanisms of competitiveness management. This study relies on regression and factor analysis. The focus is on the competitiveness level of 12 agricultural enterprises operating in Russia. Among the studied enterprises, the most competitive one is the enterprise that makes the best use of available resources when moving toward the desired amount of income (profit) and minimum costs. The proposed approach allows not only to assess the true level of competitiveness of an enterprise but also to identify reserves it can exploit to improve its competitiveness using financial instruments. At the same time, the stochastic dual approach proved to be a better choice in developing a competitiveness strategy.