Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
DOI: 10.31876/er.v4i35.756
16
Business management: a look from productivity and
competitiveness
Gestión empresarial: una mirada desde la productividad y la competitividad
Girard D. Vernaza Arroyo
*
, Joselin Germania Chamorro Quiñonez
**
Recibido: 23 de julio de 2019.
Aprobado: 09 de mayo de 2020.
Cite this:
Vernaza, G.D. & Chamorro, J.G. (2020). Business
management: a look from productivity and
competitiveness. Espirales. Revista Multidisciplinaria
de investigación cientíca, 4(35), 16-33.
Abstract
The objective of this article is to describe business
management by questioning the theoretical foundations
on is dened and the implications that productivity and
competitiveness have had on it. The methodology used is
descriptive-documentary type. The results show that from
the administrative sciences there are strategic plans for
the prescription of the decision and the action that induce
to redene the power relations between management and
clients, where productivity and competitiveness depend
on relations with the market.
Key words: Management, business management,
productivity, competitiveness.
*
PhD in Legal Studies. Universidad Técnica Luis
Vargas Torres, Esmeraldas, Ecuador.
E-mail: girard.vernaza@utelvt.edu.ec.
ORCID: 0000-0001-8591-6154.
Google Scholar
**
Commercial Engineer. Universidad Técnica Luis
Vargas Torres, Esmeraldas, Ecuador.
E-mail: joshelin.chamorro.quinonez@utelvt.edu.ec.
ORCID: 0000-0001-9015-035X.
Google Scholar
17
Girard D. Vernaza Arroyo, Joselin Germania Chamorro Quiñonez
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
Resumen
El presente artículo tiene como objetivo describir la gestión empresarial,
cuestionando los fundamentos teóricos sobre los cuales está
denida y las implicaciones que en ella han tenido la productividad
y la competitividad. La metodología utilizada es de tipo descriptivo-
documental. Los resultados dan cuenta que desde las ciencias
administrativas existen planes estratégicos para la prescripción
de la decisión y la acción, que inducen a redenir las relaciones de
poder entre la gestión y los clientes, en los que la productividad y la
competitividad dependen de las relaciones con el mercado.
Palabras clave: gestión, gestión empresarial, productividad,
competitividad.
Introduction
Business management is an issue that despite being addressed from different angles or
approaches, today it continues to be a key element in the business context. It is a tool to
enable and meet the goals proposed by organizations at the local, regional, national and
international levels.
Good business management guarantees the achievement of the expected results, reaching
the necessary quality standards, which is obviously reected in the increase in productivity and
competitiveness of the company that carries it out. Today, when the business context moves
in a globalized environment, and the levels of competitiveness are more intense and decisive
for the survival of companies, the need for good business management gains more strength.
That is why, in this sense, attention is focused on the knowledge of the fundamental aspects
to carry out good business management, which adjusts to the changing reality that prevails
today. Likewise, there is evidence of the need to put emphasis on determining what elements
of business management are key to raising productivity and competitiveness levels.
It could not be any other way, because the connection between these three concepts is evident,
since management is in charge of ordering, implementing and executing the actions, as well
as affecting the labor force, the raw material, to achieve ecient results, that is to say, turn the
organization into a productive company. Consequently, the results are achieved by increasing
production, with the same or lesser amount of inputs, then not only it speaks of a productive
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Business management: a look from productivity and competitiveness
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
company, but also is capable of competing at any level, with other entities that are in its sector.
That is why this article aims to determine what aspects in the framework of good business
management result in greater productivity and competitiveness in companies.
This paper is divided in follow sections: in the rst section, the theoretical references of business
management are addressed, to arrive at the relevant aspects that must be taken into account
to exercise good business management, an issue that is analyzed in the second section. In the
third and fourth sections, the concepts of productivity and competitiveness are examined; the
fth section being an analysis of the directly proportional relationship between productivity,
competitiveness and business management.
Theoretical referents of business management
There are multiple denitions found in the specialized literature on business management, from
different points of view and approaches, but all roughly converge in the sense of perceiving it
as an essential process in the life of organizations, which is constantly evolving so its analysis
is essential if it wants to be successful.
It can be assumed that management is a process from which the resources available to
companies are coordinated and improved to achieve their results with the highest eciency,
quality, productivity and competitiveness. It is ultimately the main action carried out by
organizations to carry out their mission, and meet their objectives in society.
Management is seen as the ability of a company to quickly and upwardly achieve important
operating results; that put it in a position to achieve success in the short, medium and long
term. These aspects are indicative of effective management, which is the key for a company
not only to become a leader, but to continue to be (Guerrero, 2015).
Likewise, management can be analyzed from a more global context, which encompasses the
nation, in terms of its policies, strategies and objectives aimed at achieving the well-being and
quality of life of its citizens, thus contributing to the development of society. However, for this
study the focus is on the micro level, that is, the business environment.
In this sense, business management can be considered as the activity through which the
manager or management team of an organization determine the strategies and actions to
be followed by the company to achieve its objectives, achieve better results in its productive
area from performance and eciency, focusing on meeting the needs of its customers. But
also focusing its attention on human resources, because the increase in productivity and
competitiveness of the organization depends to a great extent on them, which will denitely
affect its survival and growth possibilities.
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Girard D. Vernaza Arroyo, Joselin Germania Chamorro Quiñonez
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
“It is the business activity that seeks through people such as institutional directors, managers,
producers, consultants and experts to improve productivity and therefore the competitiveness
of companies or businesses” (Rubio, 2008, p. 15). For the purposes of this study, the previous
denition is assumed, considering that it addresses in a synthetic and profound way the
fundamental and most benecial impact that good business management has for organizations.
Intervening elements of business management
To carry out a good control of the management of a company (Rubio, 2008) it is recommended
to take into account three essential functions: (i) What will be the purpose and mission of the
organization, clearly dening its objectives; (ii) Preparation of company staff to work effectively
through recycling and permanent training; (iii) Identify —either by improving or correcting— the
impacts of social changes that may affect the organization, taking into account their effects
and adapting them appropriately to the objective and mission of the organization.
Likewise, it is considered of utmost importance to recognize that management is closely
related to the uctuating nature of the environment in which it operates; especially when it
comes to technological changes. Another important point is that management must always
focus on people, whatever the size of the company is, since it is the workers who ultimately
make the results are as expected.
In the same way, it is essential in management to pay attention to the changes that may occur
within the company, using all the elements at its disposal to respond as quickly as possible,
for the benet of its clients and society in general.
The keys to turning organizations into truly productive and competitive entities, managers
must design new businesses, adapt existing ones, continuously monitor current businesses
to achieve maximum growth, and at the same time monitor the most important strategic
functions (Rubio, 2008). For this reason, when referring to good business management, is
highlighted the fact that a very innovative and interactive approach is required, this allows to
design and adapt the capabilities of the company beyond what is expected, not only directing
its effort and action exclusively to exploiting to the maximum its operations.
Effective management improves the way in which a company identies and selects its best
initiatives, provides them with the necessary resources and ensures that once implemented
they are managed effectively. In this sense, it is valid to limit that, when starting a new project
in the organization, the management must clearly determine the responsibilities, submit it at
the same time to frequent reviews from its conception, the analysis carried out of each project
that is started must be constant and continuous (Rubio, 2008).
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In this way, the generation of new ideas and initiatives is linked to the supervision and joint
control actions between all levels of management of the company in question, that is, area
directors and senior managers. Achieving in a more practical and useful way to improve
managerial work methods, the commitment of workers to organizational objectives, just as to
promote learning and experience in the work, as well as constant correction and improvement
to raise productivity.
On the other hand, an element that must also distinguish good management is being proactive,
which is directly related to the variable nature of the globalized environment in which companies
currently operate, mainly in the technological eld. In this way, it will be able to go one step beyond
what the complex challenges of each day entail, and it will be able to insert the competitive
advantages that it discovers by appropriating the changes that impact it, to make a difference
and strengthen its position in the market, guaranteeing its continuity.
At the same time, business management must focus on people regardless of the size of the
organization that manages, keeping in mind the satisfaction of employees, it is punctual to
create commitment and motivation towards the company and its objectives, this being a
determining factor of the productivity. And it is that with pleased and motivated workers, the
scientic evidence has proven the performance is better and therefore, the fulllment of the
objectives and achieve the expected results or higher than expected becomes a reality, which
has a favorable impact on the society in general, increasing the quality of life.
Fully in line with the previous idea, the following sentence states “management can appreciate
that an extraordinary increase in production levels will be possible if the operators cooperate in
an entirely effective way” (Rubio, 2008, p. 5), it should be noted that managers, businessmen,
entrepreneurs, have the responsibility and demand on their shoulders, to ensure and guarantee
that each member of the organization takes into account the importance of the client as an
objective, this constitutes a premise that will affect the correct attitude of employees during
the performance of their duties.
Likewise, at present the idea that management must be agile and dynamic is imposed, it is
the most certain way to respond to the changing conditions of the markets and the deal with
individual or collective consumers.
In this sense, it is proposed that the work of those responsible for management is based on
two essential functions: Marketing and Innovation (Rubio, 2008).
Rubio (2008) explains that the marketing function encompasses all actions focused on the
client and his/her needs, and includes the following: information through market research on
the needs and/or suggestions of customers; market analysis by studying customer proles,
how they are distributed, social attitudes, psychological behaviors, consumer or shopping trends;
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Girard D. Vernaza Arroyo, Joselin Germania Chamorro Quiñonez
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
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observation of the activities of competing companies, studying their products, penetration
strategies, advertising, and design of pricing and product policies; denition of promotion and
sale actions, product packaging, marketing, distribution logistics; the sales policy (methods,
after-sales services, nancing of customer purchases); the function of innovation is the process
by which a company obtains more and more benets, as well as higher levels of quality.
In the case of the innovation function, it can be observed that it constitutes an elementary
aspect to develop productivity, it implies: the introduction of a new product (good or service);
the introduction of a new production method; the opening of a new market; the conquest of
a new source of supply of raw materials or inputs; the creation of new market structures in a
given activity sector (Ortiz & Arredondo, 2014).
These functions mark an important milestone in the work of business management, therefore,
paying attention to them is a smart decision and one that adds value to the company on its
way to success.
At the same time, the literature consulted includes four business capacities, which are a
requirement of any manager or administrative person who aspires to carry out good business
management must consider (Ortiz & Arredondo, 2014): market orientation; learning orientation;
entrepreneurial orientation; innovation capacity.
This are fundamental pillars for companies to increase their chances of survival and growth
in the market.
In this same direction, another of the theoretical referents consulted states that the qualities
that management must incorporate in their actions are both those of the entrepreneur and
those of the administrator, since in their performance they will be relevant in an interrelated
way to apply the functions of entrepreneurship and management (Ortiz & Arredondo, 2014).
According to the above, it can be seen that the competitive success of companies is related
to business management where strategic planning predominates, there is a vocation for
innovation in its processes, products and management, it also emphasizes developing a
technological level superior to competitors in its sector.
Productivity: From the economy to sustainability
The term productivity refers to an essential concept of the economy and that is understood,
if analyzed from that premise, as the maximum amount of product that can be achieved by
combining the factors of production (capital and labor) and natural resources.
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Business management: a look from productivity and competitiveness
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On the other hand, productivity is appreciated as the effective use of innovation and resources
to increase the added aggregate of products and services.
Another denition of productivity as the relationship between the product generated and the
factors that contribute to achieving that production (Rubio & Baz, 2004). In direct line with
the previous conception, it is pointed out that this can vary due to multiple factors, such as
material, human, technological and capital inputs. Likewise, it emphasizes the impact of the
way the company is organized, the improvement of products and the development of new ones.
In this sense, it is agreed in the appreciation that in order to increase the productivity of a
company it is necessary to produce more with the same or more with less, which is the same
as doing things better and better. Another denition of productivity indicates that it is the
ecient use of the resources that a company has; which implies simplifying tasks, reducing
costs, as well as using labor, raw materials and other aspects related to the company in a
better way (Rodríguez, 2013). However, this denition does not highlight the role that business
management plays in achieving high levels of productivity.
It is very common to associate the concept of productivity, only with the improvement of the
direct labor output of production, either through higher work rates, improvements in methods
or the automation of processes. It delves into the fact that productivity can also be considered
from a more global point of view, by integrating in its evaluation the improvement of quality,
costs, response cycles or required investments, since these factors will have a direct and
indirect impact on improving productivity (Carro Paz & González Gómez, 2011).
According to the above, it has been observed that the number of indicators that are used
with the intention of measuring productivity depend on the approach and the variables
to be measured.
A company is productive when it has the internal conditions that allow it to compete and
the external ones that give it the ability to reduce costs and compete successfully (Rubio
& Baz, 2004).
Therefore, it is worth mentioning that productivity depends, in many ways, on government action
in terms of infrastructure, education and technological development, as well as on public policies
that promote or impede productivity growth, such as labor, scal and regulatory policy. On the
other hand, it is mentioned that factors such as technological innovation, organizational or
institutional changes and innovations, improvement in the business environment, improvements
in management techniques, reduction of ineciencies, uctuations in demand or use of installed
capacity —both cyclical elements—, changes in the participation of factors, the displacement
of the use of factors towards more productive activities, the learning process on the job, the
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Girard D. Vernaza Arroyo, Joselin Germania Chamorro Quiñonez
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
use of economies of scale and even measurement errors or omission of variables can result
in a loss of productivity (Ortiz & Arredondo, 2014).
Likewise, in one of the theoretical references consulted, two essential aspects are presented
that, from the management, should be done to improve productivity: (i) increase production
without changing the volume of inputs (which seeks to produce and sell more); (ii) reduce
the volume of inputs without changing production (reduce the costs of the resources used
in the company).
This is very useful because by increasing its productivity, the performance of its company is
improved, and, therefore, increase its prots, and this is reversed in society, enabling a better
quality of life. Since the fundamental way for a company to grow and be protable, that is, to
increase its prots, is by increasing its productivity levels.
In conclusion, it can be stated that the criteria and concepts associated with productivity and
competitiveness in a company are closely linked and for this reason they receive permanent
attention from producers, governments, investors and analysts.
Every company must pay special attention to the fact that its strategy (the decision of how it
wants to achieve its objectives) is effective, since its success will depend on it, that is, it must
have a strategy that can be applied eciently (Carro Paz & González Gómez, 2011).
In this sense, it should be stated that it is not an easy task for a company to be productive
if it does not have, to begin with, a clear, dened and shared strategy, a specic structure
and a distribution of responsibilities according to said structure. This is a key point in the
interdependent relationship that exists between business management and productivity.
It is considered that probably the most important reason why organizational productivity
does not grow suciently is the lack of commitment on the part of the management in its
business management.
In the same industrial sector, with comparable products and equipment, it is perfectly possible
to nd companies with signicantly different levels of productivity.
This underlines that not only factors external to the company (government policies, union,
ination, crisis) are those that cause low productivity, but also differences in the level of
commitment of management during certain periods of time in relation to the productivity.
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Competitiveness: Its theories and approaches
Regarding the phenomenon of competitiveness, several theories and approaches have emerged
over time that try to explain it within the framework of the prevailing situation of globalization
(Campi, Font & Lazcano, 2017). However, there is still no consensus regarding a denition that
is generally assumed.
Another denition of competitiveness extracted from the consulted bibliography indicates
that it is the ability of an organization to maintain or increase its market share based on new
business strategies, on sustained productivity growth, on the business-to-business capacity
to participate in negotiations with different institutions and other companies within their
environment, in the existence of a competitive environment determined by the sector and the
consumer market and in policies introduced by national governments and regional economic
alliances (González, Alaña & Gonzaga, 2018).
This denition is assumed for this study, as it is considered more accurate when addressing
the determinants of productivity and therefore business success. Thus, it is what makes a
company successful in the eld in which it develops. This is a consequence of the conditions
that exist in the environment, as well as the ability of the employer that the management to
distinguish itself from its competitors.
And, for a company to be considered competitive, it must develop products and services
whose costs and qualities are comparable or higher than those of its competitors in the rest
of the world.
The competitiveness of each company depends on its own internal structures, that is, on its
organization and capacity to produce in such a way that it can increase its sales and beat its
competitors in different areas (Rubio & Baz, 2004). However, there are an innity of external
factors that determine their ability to compete.
At this point, companies need to have a physical, legal and regulatory environment that
contributes to reducing costs and raising their productivity, which the government can provide
with an adequate policy with incentives to boost productivity. Since, in a globalized world, the
ability to compete is essential, since from that ability derives the creation of wealth, economic
growth and, therefore, the creation of jobs and the improvement in the living standards of a
population.
To the extent that a society is more productive, the ability to compete will be greater; that is why
talking about competitiveness necessarily implies talking about productivity. For organizations,
competitiveness is synonymous with the ability to compete successfully in international
markets and against imports in their own territory.
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Girard D. Vernaza Arroyo, Joselin Germania Chamorro Quiñonez
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
Competitiveness, ultimately, will be a matter for companies and not for countries or sectors of the
economy (Rubio & Baz, 2004). However, the optimal path to achieve business competitiveness
no only requires intense work on the part of entrepreneurs, but also of the government.
Also from the business point of view, competitiveness is an attribute or quality of companies
that is determined by four fundamental features: factor conditions; demand conditions; related
or support industries; and the structure and rivalry of the companies, these attributes and their
interaction explain why companies innovate and remain competitive in certain (Pacheco, 2013).
The Economic Commission for Latin America and the Caribbean (ECLAC) considers that
competitiveness to be real must be based on the incorporation of technology and the renewable
use of natural resources, a concept that can be considered more avant-garde and aimed at
sustainability environmental, contrary to obsolete conceptions that focused their approach
to competitiveness on the mere exploitation of human and natural resources.
On its part, the Central Bank of Ecuador denes competitiveness in terms of effectiveness,
considering that it reaches this point when the organization’s ability to eciently produce
high-quality goods and services is evidenced.
This translates into productivity improvements, expressed in visible cost reductions, and in
improvements in the quality and variety of goods and services produced, which result in the
competitiveness of the company.
How is competitiveness evaluated in the business environment?
There are various factors in the literature to consider, if it wanted to assess the competitiveness
of a company.
Among them, it is talked about the levels of competitiveness, as explained below. Competitiveness
occurs and is analyzed on three levels: business, regional and international.
To measure competitiveness at the three levels, two international indices have been created:
The Global Competitiveness Index, created more than two decades ago by the World Economic
Forum; The Microeconomic Competitiveness Index created by Michael E. Porter.
Other aspects to take into account when evaluating competitiveness are exposed by the
Organization for Cooperation for Economic Development (OECD), which are considered
to have equal importance when determining business competitiveness: (i) The successful
management of production ows and inventories of raw materials and components; (ii)
The successful integration of market planning, research and development (R&D), design,
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engineering and manufacturing activities; the innovation process is one of the main pillars to
sustain competitiveness and economic development, patents and other forms of industrial
and intellectual protection play a decisive role for growth; (iii) The ability to combine R&D of
the organization with R&D carried out in universities, research centers and other companies;
(iv) The ability to incorporate changes in demand and the evolution of markets as well
as the generation of an environment conducive to business is an important factor for
economic prosperity, competitiveness and growth; (v) Promotion of production programs
through schemes that facilitate greater integration and partnerships between companies.
Establishment of schemes in which development between suppliers and distributors within
the value chain is allowed.
On the other hand, when analyzing the level of business competitiveness, eight dimensions
can be distinguished which, in a combined way, contribute to determine how competitive a
company is, as well as the degree of success it presents in the domestic and foreign market
(Ibarra, González & Demuner, 2017). These dimensions are set out below, given their relevance:
Strategic planning: refers to the knowledge that exists in the organization about the objectives
and goals in the short, medium and long term; and the policies for compliance and monitoring.
It is even considered whether studies have been carried out on the environment, threats,
opportunities, weaknesses and strengths. Contingency plans have been developed. This
dimension is considered to be fully applied in all companies since it is based on their being
and doing. However, the evidence shows that sometimes this is not considered a priority when
seeking to achieve higher levels of competitiveness in a company.
Production and operations: its importance on the competitiveness of the company lies in
the complexity of the production processes, use of modern production tools, certications,
exibility in production processes, planning of raw materials and supplies, development of
new products, management of inventories, among other factors. These allow organizations to
react quickly to changes in demand patterns and factors external to the organization; therefore,
the greater the exibility and modernization of the processes and operations, the higher the
level of competitiveness of the company.
Quality assurance: in this dimension the level of implementation of quality standards is
determined, work groups are created to address this aspect, certications are developed,
and programs to face contingencies are developed. The evidence indicates that companies
where quality processes and product quality are certied and high, have higher levels of
competitiveness.
Marketing: focuses on the analysis of sales policies, distribution channels, payment methods,
relationship with customers and suppliers, denition of the target market, market studies, use
of marketing strategies, customer satisfaction. This is one of the most relevant dimensions
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since interaction with customers and suppliers is essential both to eciently produce and to
distribute and successfully sell products among customers.
Accounting and nance: focuses on studying whether it exists and is known the cost structure,
the prot margin, if the nancial planning and administration is clearly established, the scal
strategies, the payment of taxes, among other aspects of this nature. Much of the success or
failure of organizations is related to access to nancing and strategies to make adequate and
intelligent use of the economic resources of their organizations.
Human resources: part of the competitiveness of an organization is related to the adequate
use of human resources, it is essential to have a rigorous selection and hiring process, training
and coaching programs, analysis of the causes of job rotation, the work environment and the
development of programs to correct them, in addition to the establishment of compensation
systems, as well as the control of compliance with aspects of safety and industrial hygiene.
Environmental management: the new requirements in this area are of greater relevance
for consumers, companies must be competitive and at the same time responsible with the
environment. A competitive company analyzes the use of environmental standards, creates
programs that respect and conserve the environment, establish waste management policies,
recycling policies, among other measures, to achieve greater productivity based on sustainability
and environmental sustainability.
Information systems: it emphasizes the development of technology as a mechanism for business
competitiveness. Organizations that are aware of and adopt information and communication
technologies, have specialized personnel, have a certain degree of systematization and generate
effective contingency plans, this allows them to be more competitive not only nationally but
also internationally.
According to the exposed dimensions, there is no doubt that to the extent that organizations
establish adequate strategic planning, have an effective environmental management system,
adopt information systems with state-of-the-art technology, and manage eciently their
human resources, they will have greater capacity to be productive and therefore to increase
their competitiveness.
And it is that competitiveness constitutes a specic line of action, if it is intended to expand
the potential of a company that is moving towards its internationalization. This is an important
way to achieve growth and consolidation.
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Competitiveness in Ecuador
The approach provided by the Ecuadorian government to the subject of business competitiveness
constitutes an aspect of great interest. This can be seen in the application of a series of
modications at the governmental level in the economic sphere that directly involve companies.
The guidelines that guide these changes are registered in the National Plans that have been
issued since 2007, and of which there are currently these versions: National Plan for Good
Living 2014 (Plan Nacional para el Buen Vivir 2014); National Development Plan 2007-2010
(Plan Nacional de Desarrollo 2007-2010); National Plan for Good Living 2009-2013 (Plan
Nacional para el Buen Vivir 2009-2013); Good Living National Plan 2013-2017 (Buen Vivir
Plan Nacional 2013-2017).
In the current version, a group of guidelines can be identied aiming to strengthen the
competitiveness of companies in the rural, service and productive sectors. This is mainly
aimed at the application of scientic and technological research, local experimentation, access
to knowledge, innovation, among other aspects, in the country’s economy.
It has been observed in the documentary analysis carried out for this study that in Ecuador, the
State has played an important role in the establishment of policies and guidelines included
in the National Plan for Good Living, in order to create the necessary spaces and conditions
for the strengthening of the competitiveness of national companies, of the different sectors
of the economy, both in the public and private spheres (Campi, Font & Lazcano, 2017).
However, despite the favorable context made possible by government policies and the attention
that the State has given to this issue, increasing competitiveness at the business level in Ecuador
continues to be an imperative for the country, and a sine qua non condition to achieve economic
growth and viable sustainable development that Ecuadorian companies need so much.
This path, as might be expected, must be traveled with full knowledge of the obstacles and
consequently the search for alternatives to solve them. Among them, urgent attention should
be paid to the following aspects: the implementation of a coherent, secure and favorable legal
framework for the reactivation of the Ecuadorian productive sector, which helps to eliminate
the restrictions and distortions of the legal system emanating from ineffective legislation and
a decient system of justice administration.
Simplication of procedures that prevent the ight or decrease in foreign investment and that
promote the creation of new export business ventures.
Tariff reductions, especially for technological hardware and software products that allow
better conditions of access to technology and facilitate the laying of community information
technology networks in rural areas.
29
Girard D. Vernaza Arroyo, Joselin Germania Chamorro Quiñonez
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
Promotion of competition in monopoly economic sectors, such as the opening of the monopoly
of air ight controllers. And institutionalization and regulation of quality levels, such as the
implementation of ISO standards for quality control in organizational and productive activities.
Simplication of taxes, actions to reduce the interest rate, improvement in the current
macroeconomic and institutional environment that allows the pillars described above to
become State policies.
Productivity and competitiveness as variables directly proportional to business
management
How does good business management inuence productivity and competitiveness?
Management implies knowing the environment, conceptualizing it and generating strategic
guidelines (Hernández y Rodríguez & Pulido Martínez, 2011).
The previous approach marks a milestone in the interdependence that exists between
productivity and competitiveness with the effective business management of any successful
organization. This is due to the fact that business management constitutes the basis of any
company, if good management is carried out the company grows, on the contrary, if bad
management is carried out the company will decline.
On the other hand, good management should not only focus on the company and what happens
within it, but should also pay attention to nding problems that are affecting organizational
performance. In the same way, it must maintain a satised customer, based on the standards
of excellence in the production of services and goods. Likewise, it must be in charge of making
the most of all the resources that the company has, to maximize its prots and reduce costs,
without ignoring quality and the customer.
And it is that as it is stated in this reference:
The manager is the dynamic and life-giving element of every business. Without their executive
capacity, the ‘production resources’ are never converted into production […]. In an economic
system of competition, the quality and performance of the managers determine the success of
a business and, even more, its survival, because they constitute the only advantage a company
can have […] in the system it operates. (Drucker, 1974, p. 13)
And something that has been proven from the analysis of the specialized literature carried out
in this study is the fact that the vast majority of productivity improvements can be effectively
driven by active managers, innovators and entrepreneurs who have a high commitment with
their role as catalysts for productivity.
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Business management: a look from productivity and competitiveness
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
Although this obviously constitutes a challenge, managers can improve productivity, and
therefore, the competitiveness of their companies even in an environment like the current
one where the constant variable is change (Carro Paz & González Gómez, 2011).
For this, it is essential for them not only to manage but to create, congure and implement
functions and actions that allow them to increase productivity eciently, and also signicantly
enhance competitiveness in their organizations.
A specic premise that cannot be ignored is the direct and close relationship that is appreciated
between productivity, competitiveness and business management. For this reason, it is essential
to implement management systems in companies, where top management assumes with a
high degree of commitment the strategies to become productive and competitive.
In this sense, it is also necessary to encourage the participation and commitment of workers
to handle problems associated with productivity that are found in their daily work, because
only in this way can the expected results be obtained, and ultimately sustainability and survival
of the company in such a globalized and changing context.
At this point, in the same way, the need to promote an education aimed at training and the
formation of skills at both the managerial level and the workers plays a fundamental role to
fulll their responsibilities in the process of generating quality goods and services, taking into
account it has the effective indicators to measure the performance of companies in terms of
increasing productivity and competitiveness.
Business success is a variable that directly depends on the high level of productivity and
competitiveness achieved by the organization.
There are some components included in the literature consulted on successful companies
where business management is analyzed in the rst place, and this is because effectively the
increase in productivity and competitiveness of a company are the result of good business
management.
These components are set out below and, due to their relevance, their inclusion is considered
valid and not only for study purposes, but with the aim of promoting their implementation
(Suárez, 1994, p. 169).
(i) Leadership and business management, which involves: long-term emphasis (high degree
of commitment to strategy); strategy shared by all members of the organization; constant
benchmarking; at organizations; focus of energies on what the company “knows how to
do” (core competences); global vision (search for or attention to new markets and strategic
31
Girard D. Vernaza Arroyo, Joselin Germania Chamorro Quiñonez
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
alliances); executives directly involved in company processes (hands on); balance between
the importance of functions.
(ii) Process management, which involves: product development through overlapping stages;
design in search of manufacturability (DFM); close relationship with a small number of suppliers
and distributors; just-in-time (JIT) systems; continuous improvement; total quality (TQM);
process reengineering; activity-based accounting and costing (ABC).
(iii) Management of human talent, which includes: emphasis on the team and not the individual;
evaluation and reward systems based on company or team performance; rotation of tasks
(people with an overview); deliver greater authority and decision-making power to the lower
levels of the company (empowering); high commitment to the education and training of the
members of the organization.
Conclusions
It was possible to reach the conclusion and conrm the premise that supports this study that
good business management depends on the organization reaching higher levels of productivity
and competitiveness that lead it to position itself in the market and become a national and
international benchmark in its sector.
The factors that must distinguish good business management were determined to take the
organization to its maximum productive and competitive potential, among which the proactive,
innovative, entrepreneurial, customer-focused attitude should prevail, without forgetting the
important role of human resources, and with an enormous and developed capacity to adapt to
change and take advantage of it as an opportunity for competitive advantage in the business
environment.
The fundamental indicators that allow achieving productivity in an organization were exposed,
among which the following stand out: having a clear and accurate strategic planning that all
members of the organization know, improvements in management techniques, in the learning
process in the work, technological innovation, the quality of goods and services, as well as
government management around infrastructure and education, in addition to reducing costs
and increasing prots.
The key aspects to measure competitiveness at the business level were identied, among which
stand out: the increase in market share based on innovative business strategies; the increase
in productivity determined by the increase in sales and the reduction of costs; the increase
in business-to-business participation in niches or new markets based on the formation of
cooperation alliances with other business entities; as well as the successful integration between
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Business management: a look from productivity and competitiveness
Espirales. Revista multidisciplinaria de investigación cientíca, Vol. 4, No. 35
Octubre-diciembre 2020. e-ISSN 2550-6862. págs 16-33
market planning, marketing actions, research and development activities plus innovation to
improve production processes, work rates, design of products or services, as well as raising
their quality.
It was found that in Ecuador, despite the favorable intention of the government, who constitutes
the managerial level at the country level, and the incentives that it has implemented to enhance
the productivity and competitiveness of companies, more appropriate action is still required
around to the policies concerned to achieve this purpose, which should be aimed at the
application of a reliable, safe and effective legal framework; the simplication of procedures
and reduction of tariffs and taxes, which help to reactivate the national productive sector, attract
and retain foreign investment and promote competition but also business cooperation at all
levels through strategic alliances in sectors that merit it.
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