Academic journal article Journal of Competitiveness Studies

The Effects of Intellectual Capital and Innovation on Competitiveness: An Analysis of the Restaurant Industry in Guadalajara, Mexico

Academic journal article Journal of Competitiveness Studies

The Effects of Intellectual Capital and Innovation on Competitiveness: An Analysis of the Restaurant Industry in Guadalajara, Mexico

Article excerpt

(ProQuest: ... denotes formula omitted.)

INTRODUCTION

Nowadays, globalization, technology development and innovation in the processes that enable the development of new products, techniques and even ideas, determine the rate at which companies must adapt; therefore, competitiveness has become one of Key challenges in the corporate agenda.

According to Sirikrai and Tang (2006), the intense market competition forces companies to develop their skills, allowing ready to compete in an environment where efforts to improve participation derived from a superior offer providing competition are not an option. Such improvements not only benefit business, but which together foster the welfare of an industry or sector.

One of the major topics associated with the development of competitiveness in business is the intimate relationship of the effect of their overall competitiveness. The competitiveness of an industry is the result of the sum of the efforts and abilities of individual companies that comprise it. In turn, the community of industries and their degree of innovation lead to the competitiveness of a country that could be described as a staged process. That is why the competitiveness of enterprises should be one of the central themes of discussion and interest both for the same industry and by governments for the purpose of each assume their role in mutual benefit.

In Mexico, the restaurant industry is one of the most important, because it is fundamental for the development of the Gastronomic industry of the country, is a developer of human resources and creates a huge social benefit by using a large amount of labor. At the same time is considered as the most important industry in the budget for family expenses. Mexican families spend 9.8% of expenditure to the category of food out of home. In Mexico there are 221 thousand restaurants, of which 96% are micro and small enterprises generating 800 thousand direct jobs and 2.2 million indirectly, participating with 2.3% in GDP, and 23.8% in Tourism Gross Domestic Product. However, within the country there are several states where the restaurant business activity has a more relevant because it is economically dynamic places such as Distrito federal, Mexico City, Jalisco, Veracruz and Puebla. (Novelo and Vazquez, 2005).

In addition, as one of the sectors of high demand, the problem that takes advantage of the situation presents a weak administrative system and very competitive and requires strategies that enable it to make front to competition. According to Foster (2001), the success of a restaurant depends on six main factors:

1 . Effective management;

2. Quality raw material;

3. Standardization in food;

4. Attentive service;

5. Atmosphere;

6. Added value.

INNOVATION

Innovation refers to how an organization develops new knowledge or modifies the existing to create new products and processes that help to increase value for the company (Jamrog, Vickers and Bear, 2006). Another definition given by Damanpour (1991) states that innovation is the implementation of an idea and then translated into products, services and processes, which emerged in response to the constantly changing environment. Innovation is therefore a phenomenon that dramatically alters spontaneous and intermittent economic life of the sectors (Schumpeter, 1997).

According to López (2006), innovation can be located within the technical field-productive; in this respect, Schumpeter (1997) referring to phenomena related to the field of industry and commerce, provides that innovation is the result of the implementation of several elements:

1. New ideas or a combination of existing in order to develop new products, change its components and the improved in quality , which response to environmental changes;

2. The introduction of new production methods that increase the productive and administrative capacity of the company;

3. …

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