Territorial assets and SMEs competitiveness: the case of prefecture of Thessaloniki, Greece

This study examines the impact of territorial assets on firms' competitiveness in the Prefecture of Thessaloniki. Questionnaires were handed out to 1311 small- and medium-sized firms located in the area. The research instrument included 27 territorial assets where respondents evaluated the performance of Thessaloniki in these factors. The analysis used Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM) techniques and included two parts according to the type of firms. The first concerned Commercial firms and the second Industrial Firms. The models for Service firms were not valid; hence, there were excluded. The results indicated that territorial assets are connected with firms' competitiveness since in both models all-structural relationships were statistically significant. Territorial assets have a different impact according to the sector. For commercial firms, Agglomeration, Labour and Cost influence positively their competitiveness. In contrast, industrial firms' competitiveness is associated with Connection and Institution. Overall, it seems that Thessaloniki has more of a commercial character rather than an industrial one. Furthermore, firms' competitiveness in the area is aligned with sustainability. In particular, the commercial and industrial sectors operate relatively providing fertile ground for the development of business practices that also met the needs of the community.