LOGISTICS ASPECTS OF FIRMS’ CAPABILITIES TO INCREASE INTERNATIONAL COMPETITIVENESS

Abstract

The elimination of a great number of trade barriers between countries in recent decades as well as someconsiderable changes in the supply and demand in different parts of the world have brought a tremendous growthin trade relationships between countries and regions and have led to an increase of international competition innearly all industries. The enlargement of firms’ logistics systems on a continental and global scale and theassociated increased complexity of logistics processes have increased the importance of the development ofadequate logistics capabilities, not only to ensure access to the new markets and supply sources but also toincrease competitiveness through reduction of logistics costs and improvement of customer service. The currentpaper utilizes this idea of the development of adequate logistics capabilities as the basis for evaluating firms’perceived competitiveness. In particular, the study examines the logistics aspects of the strengths andweaknesses of Bulgarian manufacturing firms servicing foreign markets, the extent of invested resources ininformation systems and technologies facilitating integration of material and information flows, as well asplanned actions to improve their capabilities in order to increase their competitiveness in foreign markets. Theresults reveal the existence of linkages between some logistics capabilities and the international competitivenessof companies.

Key words: logistics, supply chain, competitiveness, information systems, international markets