Competitiveness Impedimental Factors of Latvian Manufacturing Companies in China

Abstract

This study seeks to investigate competitiveness of foreign manufacturing companies in the Chinese market, developing full list of competitiveness impedimental factors of foreign manufacturing companies in the Chinese market, exploring the most significant competitiveness impedimental factors of Latvian manufacturing companies in the Chinese market and developing the conceptual model for reduction of competitiveness impedimental factors of Latvian manufacturing companies in the Chinese market. The main research methods employed in this study are literature review, expert method and surveys. The conceptual model for competitiveness improvement of manufacturing companies in the foreign market developed in the study shows that it is possible to improve companies’ competitiveness in the foreign market by reducing impact of competitiveness impedimental factors for operation in the foreign market that leads to increased profit, turnover and export volume. The results of this study show that the most significant competitiveness impedimental factors of Latvian manufacturing companies in the Chinese market are as follows: logistics to China is expensive and time-consuming, lack of support from state government for exporting to China and inappropriate marketing to sell products in the Chinese market.