Greek manufacturing firms: low skills low wages and low profitability

摘要

Our analysis reveals that the competitiveness of Greek manufacturing has declined severely since 1990. Employment has fallen significantly along with the real production output. Among the main causes of the economic crisis in Greek industry appears to be the cost-cutting business strategy followed by Greek manufacturing firms, which can no longer ensure their profitability.We suggest that manufacturing firms should change their business strategy to maintain their competitive position, focusing on product quality and differentiation rather than on low cost production. However, the implementation of this strategy requires changes both in the external and internal environments of manufacturing organizations.