Models of competition between firms: The case of Slovenia’s (post)transitional economy

Abstract

The process of competition between firms can be described as a causal-consecutive sequence. The paper is built on the findings of empirical research based on a sample of 225 Slovenian firms. By using statistical methods we examine which approaches firms use to ensure their competitiveness and, based thereon, offer a judgement on the existence of potential models of competition in a posttransitional Slovenian economy. We conclude that there are four such models. They mainly differ in the sources of competitive advantage, financial and nonfinancial performance, size of firms and firms' strategies, whereas differences regarding the forms of competitive advantage are much less significant. Slovenian firms are therefore taking different paths towards competitiveness, which is not very surprising given the complexity of the competition process.