FIRMS’ CHARACTERISTICS, STRATEGIC FACTORS AND FIRMS’ PERFORMANCE IN THE CROATIAN MANUFACTURING INDUSTRY

The paper aims to identify factors that are behind superior performance of manufacturing firms. It compares the similarities and differences in ten selected firms’ characteristics and strategic factors between high performers and low performers operating in the Croatian manufacturing industry. The hypotheses were tested with data obtained from company survey. The data was analyzed using one-way analysis of variance (ANOVA). The research results indicate that high performers were smaller and younger companies with higher level of capital intensity. They invested signifi cantly more in marketing. As compared to low performers, high performers had ower total labor expenses, but paid out higher gross wages per employee. Lower debt ratio was associated with higher level of performance. The findings further show that high performers exhibited higher productivity level than low performers. Finally, the paper discusses implications of fi ndings for industrial policy and manufacturing strategy.