What Shapes Competitiveness? Evidence from 4,028 Asian Manufacturing Firms with ESG and AI Insights
Abstract
This study examines the factors influencing firm competitiveness by integrating firm-specific and macroeconomic variables, with a focus on ESG (Environmental, Social, and Governance) indicators and artificial intelligence (AI) proxies. Using panel data from 4,028 manufacturing firms in Asia over the period 2014–2024, we employ Boone indicator as the sole measure of competitiveness. The analysis is conducted through ordinary least squares (OLS), complemented by diagnostic testing for multicollinearity. The results indicate that liquidity, firm size, efficiency, and ESG dimensions exert significant effects on ROE. Furthermore, AI-related imports and environmental tax revenues are associated with enhanced efficiency and competitiveness. Incorporating ESG variables improves the robustness and explanatory power of the models. By extending the RBV framework, this research offers fresh insights into the strategic role of ESG and digital transformation, while also providing policy implications for strengthening sustainable competitiveness and firm performance in emerging economies.
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Faizulayev, A., Taikulakova, G., Verbovaya, O., Bazarhanova, G., Bayadilova, L. (2025). What Shapes Competitiveness? Evidence from 4,028 Asian Manufacturing Firms with ESG and AI Insights. 13th Higher Education Institutions Conference (HEIC 2025), 04-05 September, 2025, Dubrovnik (Croatia). https://doi.org/10.66781/heic.2025.15
