The relationship between Innovation and Global Competitiveness: The mediating role of Management Practices evaluated by Structural Equation Modeling

Purpose -This study seeks to investigate whether a good management environment in companies determines results in terms of country competitiveness.Additionally, it aims to verify if innovation plays a role in contributing to this.Design/methodology/approach -The study used structural equation modeling and data on 138 countries contemplated in The Global Competitiveness Report 2016/2017 (2016 World Economic Forum).A number of theories have been used to relate competitiveness to innovation and to management practices.This discussion was expanded, taking these variables into account in a more comprehensive framework.Findings -The analysis performed indicates the role of best management practices as a mediator in the relationship that exists between innovation and global competitiveness, which reinforces the importance of a good level of management Originality/Value-There have been many studies and discussions about global competitiveness.The factors in the literature used to explain a country´s degree of competitiveness include cheap labor, abundant raw materials, the amount of capital available for investment, and, especially, the capacity to innovate.