Comprehensive diagnosis of business competitiveness in Ecuador using multivariate analysis with ENESEM 2023 data

Abstract

Introduction. For developing economies such as Ecuador, understanding the determinants that drive firms' productivity and performance is not only an academic issue, but a strategic necessity for the formulation of effective public policies and informed managerial decision-making. Objectives. This study proposes an integrated framework to diagnose the competitiveness of medium and large firms in Ecuador, identifying their latent dimensions, aggregating them in a synthetic index, and characterizing the business profiles associated with their performance. Methodology. A sequential methodological triangulation is used. First, an exploratory factor analysis that identifies the latent constructs of competitiveness. Second, a principal component analysis that synthesizes these constructs into a comprehensive competitiveness index and third, a multiple correspondence analysis that visualizes the association between the comprehensive competitiveness index, key factors and categorical variables such as sector, region, and size. Results. ENESEM 2023 data, the statistical analysis shows results that identify four latent factors such as innovation capabilities, operational efficiency, digital intensity, and structural solvency. The existence of three main clusters is revealed: "Low-intensity traditional companies", "Efficient exporters with high solvency", and "Digital innovators oriented to the domestic market". Conclusions. The results allow the design of differentiated public policies and offer managers benchmarking to evaluate their competitive position. This research has a value, it is pioneering in applying an integration of these three techniques to ENESEM data, providing a richer and more actionable diagnosis than traditional one-dimensional approaches. General area of study: Private Law and Legal Pluralism. Specific area of study: Business. Type of article: original.