An analysis of the competitiveness of the ICT manufacturing sector in Latvia

The Information and Communications Technologies (ICT) manufacturing industry in Latvia is currently exporting most of its products, however the
question is – how competitive is the Latvian ICT manufacturing industry and
what is its future potential? Moreover, the recent economic and financial crisis in
Latvia continues to raise the question with regard to which industries, services
and economic activities can best serve as the cornerstones of Latvia’s national
wealth.
The purpose of this study is to analyse the competitiveness of the Latvian ICT
manufacturing industry by utilising the Porter diamond – five forces model
and the resource-based view model. This paper undertakes an evaluation of
the innovation potential of the Latvian ICT manufacturing industry and of its
capability to become one of cornerstones of Latvia’s national competitiveness.
The research outcome offers recommendations for strategy development within
individual organisations and for the industry as a whole.
This paper includes a review of the available literature, exploratory interviews
with experts of the Latvian ICT industry, quantitative analysis, logical analysis
and generalisation.
The research undertaken will serve as a contribution to those organisations
which are involved in making strategic decisions on the possibility of entering
the ICT manufacturing industry of Latvia and will help to shape the strategies
for current ICT manufacturing industry players in Latvia. This research may
also be useful to governmental institutions that are directly involved in the
developing economic strategies of Latvia.