Weighting indicators in composite indexes: A theoretical model of competitiveness assessment for electronics market

Abstract

During the last few decades modern companies learned to adapt their strategies to global needs of customers. Leading companies are those that divide and spread their investment volumes, and operating activities more accurate. However, main investment decisions are based on various factors, such as type of the business itself, distance to the main consumer markets, workforce availability, tax rates and etc. These factors in general could be defined as a set of social, economic, geographical and political factors that create a synergy effect while interacting. In general, such interaction’s result is known as country’s competitiveness level or ease of doing business level. In this case, author is evaluating competitiveness of one particular business sector – companies producing electronics in Lithuania. Article discusses different methods of national competitiveness level assessment, also its’ methodological imperfections in weighting competitiveness criteria and possible methods to assess separate business sector’s competitiveness, for example, electronics business sector. Correlation regression and other mathematical programming methods are applied in the research. Result of the research is proposed theoretical quantitative criteria weighting method for national competitiveness assessment models. This model is later adaptable to theoretical model of electronics market competitiveness assessment.