Kaunas University of Technology

Vitalija Venckuviene, Asta Saboniene


Low-tech sector has been considered to be the driver of economy during the downturn in terms of export led growth. The top headline of competitiveness is becoming an organic issue and being incorporated in many strategic documents at macro level as well as micro level including the each company’s goals. The dynamics of markets and huge competition is sending the core message for all companies - to be on the edge of technological development, to be the first in the competition, to produce quickly and efficiently and to become a professional in the field. Therefore the human resource (HR) factor is becoming the core issue in order to achieve the competitive advantage. Thus the main research problem arises: What are the main human resources and labour market related problems in Lithuanian low-tech sector companies and how to handle them in order to survive in the competitive battle?

Purpose. The paper aims to explore the main restrictions of human resource (HR) and labour market specifically in Lithuanian low-tech sector and to provide implications for mitigating them in order to improve the competitiveness of this sector.

Methodology. In order to reveal the analysed problem in depth the expert evaluation method has been chosen. The experts in this research cover professionals from the prominent low-tech companies in Lithuania, mainly top team members. The questionnaire is the main instrument for primary data collection. For data analysis a nonparametric statistics tests have been calculated like Kendall’s concordance coefficient and Spearman’s rank order correlation coefficient.

Results. The main findings suggest that the core restrictions for low-tech competitiveness Lithuania cover the  lack of highly skilled managers, labour quality and qualifications, and such labour market related boundaries like strict labour laws and low labour market flexibility. According to experts opinion the great effort from Government’s side should be directed to improving labour market regulations in terms of simplification of them and increasing labour market flexibility. The other core issue for the policy instruments regarding human resources is to balance the supply of university graduates specialisation and the real market needs, and not forgetting the classical shortage regarding the cooperation with academic institutions in both research field and preparing specialists.

The theoretical contribution. The paper contributes to the scientific discourse of various low-tech sectors issues especially in revealing the human resource and labour market restriction and providing implications for mitigating them.

Practical implications. Regarding the experts’ opinion implications for government support policy and relevant instruments are outlined, specifically in mitigating the human resource and labour market restrictions.

Keywords: Human resource, labour market restrictions, competitiveness, low-tech sector, experts’ evaluation method.

Paper type: Research paper.


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