Productivity and Competitiveness
Competition is the rivalry between suppliers that happens in the market or for the market. Firms often compete to get more customers by offering high-quality products and services, giving lower prices, and offering innovative products and services. When there is effective completion in the market, a clear message is sent to the firms about the price charges and profits they can earn with regards to the products the customers wand to buy. Firms offering products that consumers want at lower process will prosper while firms that do not will be competed out of the market. Stiff completion enhances productivity (Gërguri‐Rashiti, Ramadani, Abazi‐Alili, Dana, & Ratten, 2017). In this paper, I will discuss a factor that influences competitiveness and productivity.
Innovation and use of information technology is a factor that gives firms a competitive advantage and increases productivity. Change involves the creation of goods and services that satisfy consumer wants and offers a variety of products. Innovation starts with the employees in the organization, where they are trained to use new processes, methods and procedures to provide innovative products and services (Gërguri‐Rashiti, Ramadani, Abazi‐Alili, Dana, & Ratten, 2017). Once the employees are trained on the use of innovation in their labor processes, their productivity increases, as well as that of the company. Use of information technology and innovation provides high satisfaction levels to the employees and the customers. This combination increases the level of employee productivity and increases the level of the organization’s competitiveness and productivity. Effective use of information technology and innovation has positive impacts on customer relation services, processes, products, service delivery, and risk management. These factors make a firm competitive because of increased productivity and offering quality products and services.
In conclusion, use information technology alone cannot guarantee increased productivity unless it is used together with other resources like innovation. When a firm can satisfy customer needs and offer better innovative products, its competitive advantage remains top over other competitor firms. When a firm is competitive, then its productivity is high. IT-innovation is one of the factors that affect the competitiveness and productivity of firms.
Gërguri‐Rashiti, S., Ramadani, V., Abazi‐Alili, H., Dana, L. P., & Ratten, V. (2017). ICT, innovation and firm performance: the transition economies context. Thunderbird International Business Review, 59(1), 93-102.