Competitiveness of United States firms in the global economy

This study examines the competitiveness of U.S. industries in the global economy. The study begins by identifying those U.S. industries and companies that have been competitive during the period 1981-1992. It then explores the management policies and practices employed by these companies and assessed their impact on the firms global competitiveness.;This study utilized United Nations data available in its International Trade Statistics Yearbooks (1980-1992) to determine the dollar value, global market share and ranking of U.S. exports and imports for all 3 digit codes within manufacturing SITC categories 5-8.;Competitive 3 digit SITC categories were defined as meeting the following 5 criteria: (1) Having a positive trade balance at the end of the period under study. (2) Export ranking in the top 10 at the end of the period under study. (3) Dollar value export growth in excess of import growth during the period under study. (4) Export market share growth during the period under study. (5) Export market share growth in excess of import market share growth during the period under study.;The empirical findings of the study indicate that a signifiant improvement occurred in U.S. industrial competitiveness during the period 1987-1992 compared to the period 1981-1987. For the period 1981-1987 no 3 digit SITC category met all 5 criteria while for the period 1987-1992, forty-four 3 digit SITC categories met all 5 criteria. When the competitive 3 digit SITC categories were converted to 4 digit SIC codes using a conversion table provided by the National Trade Data Bank, the 3 largest companies (by sales) within each converted 4 digit SIC code were also competitive. Competitive companies as a whole developed organic organizational structures, participatory management styles, global corporate strategies and made innovation part of their corporate culture.;The approach followed in this study differs from previous studies on the subject. Previous studies have explored the issue of industrial competitiveness by focusing on SITC & SIC coded industries as a whole and by examining the impact of government policies on competitiveness. These studies did not seek to identify individual companies within competitive industries, nor did they analyze management practices and policies to determine their impact on competitiveness.;This study concludes that management practices and policies constitute an important element in improving the competitiveness of U.S. industries in the global economy. This is in contrast to studies that called for the development of an industrial policy to enhance competitiveness of U.S. firms.