Dimensions of competition between polish regions. How to implement the Analytic Hierarchy Process and benchmarking into the strategic management process in public administration?

Jacek Strojny

Abstract


Purpose.

Article corresponds to the aims of the methodology and the cognitive dimension. As a part of the methodological dimension of the aim of this article is to verify the usefulness of methods: AHP and benchmarking in the strategic management process of development of the regions. They have been used to organize the process of collecting and analyzing of strategic information for the assessment the competitive position of Polish regions. The second objective of this paper is therefore to identify the main dimensions of competition between regions in Poland and to identify differences in the competitive position of them.

Methodology.

In an article on the basis of literature studies there were identified dimensions of competition between regions. In evaluating the significance of these dimensions, as well as the importance of statistical variables describing them the AHP method was used. Then was prepared a comparative analysis of the regions with the advantage of assessing both the current situation and trends in the years 1999-2013. In the data analysis, the single-based indices and standardization methods were applied to achieve detailed and global marks of the comparative position.

Results.

The main dimensions of competition between regions take place in the field of mobile capital (human and investment), tourism services and other products and services. In these areas there presents an analysis of the competitive position of Polish regions, while testing the usefulness of the above-mentioned methods, thus AHP and benchmarking. On this ground, it made strategic management guideline for the development of the regions. On that point are also identified the benefits of this approach in terms of the implementation of smart specialization guidelines to handle the progress of the areas. The paper identified key sectors of the market where competing regions. Also prepared an assessment of regions from the point of view of the various markets and evaluation of the aggregate competitive position. Identified in this report is a utilitarian approach, not merely at the national but also European. The presented analytical procedure as well as the dimensions of the evaluation can be enforced in other nations of the European Union, after taking into account the statistical data resources in a given country or Eurostat data.

The theoretical contribution.

The issue of competition between regions and their competitiveness is analyzed both from the point of view of economic and management sciences. Certainly, it is necessitated to take into the consideration the endogenous growth concepts, eg. models proposed by: P.M Romer, R. E. Lucas, S. Rebello, Ph. Aghion and P. Howitt. The Mankiw-Romer-Weil Model (N.G. Mankiw, D. Romer, Weil DN) based on the Solow model should be mentioned as well. Divine guidance in the analytic thinking of processes competing regions, particularly getting into account the power of economic systems to contend in the markets for goods, services and capital is the concept of M.E. Porter. There are also many proposals for measuring the competitiveness of regions by utilizing statistical data - eg. RCI - Regional Competitiveness Index. In terms of methodology, mainly included studies on the method of AHP (T. Saaty, A. Prusak and P. Stefanow) and benchmarking (OECD, M. Navaro et al.). These methods are in an advanced stage of the life cycle, and their use in practice has been repeatedly verified and reported in the literature. Both deliver a significant potential for an execution. The compounding of both methods and their diligence in relation to the public administration is a kind of originality in literature, acting contribution to the development of economics and management.

Practical implications.

The paper is strictly associated with real problems observed in polish local and regional administration. The methods given in the article and the procedure of practicing them are possible to implement to real management process. There are no formal barriers in Poland if it comes to use different management methods of strategic management in practice. The main obstacle is the cultural and competence one. The AHP and comparative analysis have been applied with success in one of districts in Southern Poland. That proves that it is possible to enhance the quality of strategic management process in polish public administration.

Keywords:

strategic management, public administration, AHP, comparative analysis, regional competitiveness.

Paper type:

Research paper.


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