Competitiveness of Enterprises in Manufacture of Textile: Empirical Evidence of Czech Republic

Abstract

Abstract The paper deals with the competitiveness of enterprises in manufacture of textiles, which is currently closely linked to innovations taking into account the principles of circular economy. Globally, textile consumption has the third largest negative impact on water and land use and the fourth largest negative impact on the environment and climate change. The motivation for companies to mitigate their negative environmental impact and to implement circular economy principles should always be efficient and cost-effective. The competitiveness of a company or sector can be assessed through labour productivity, which should grow at a rate higher than the rate of growth of the average wage. The paper recommends assessing the relationships between the development of the indicators of labour productivity, average wage and return on assets using inequalities. It also analyses the frequency of innovation of enterprises in the textile industry. Using the example of a specific enterprise, it points out the possibilities of innovation, such as the use of renewable energy, increasing revenues in the form of selling textile waste for further use, and introducing environmentally friendly processes into production.