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Participation of Bulgarian Furniture Manufacturing in Global and Local Value Chains as a Factor Supporting Their Innovation Activities

Author

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  • Daniela Ventsislavova Georgieva

    (International Business School, 1407 Sofia, Bulgaria)

  • Nikolay Neykov

    (Faculty of Ecology and Landscape Architecture, University of Forestry, 1797 Sofia, Bulgaria)

  • Andreja Pirc Barčić

    (Department of Production Organization, Faculty of Forestry and Wood Technology, University of Zagreb, 10000 Zagreb, Croatia)

  • Petar Ćurić

    (Department of Production Organization, Faculty of Forestry and Wood Technology, University of Zagreb, 10000 Zagreb, Croatia)

  • Kristina Klarić

    (Department of Production Organization, Faculty of Forestry and Wood Technology, University of Zagreb, 10000 Zagreb, Croatia)

Abstract

Innovations can offer key advantages to companies, but in some EU regions, the design and development of innovation measures are still relatively novel concepts. The aim of this study was to analyze the collaborations of innovative Bulgarian furniture manufacturers with external stakeholders and the used information channels as factors for the development and implementation of innovation and participation in global value chains over their innovation activities. Out of 3890 Bulgarian companies, the number of companies included in the target group was further reduced to 85 firms due to missing information on some variables. The data for the present study were collected using a large-scale questionnaire distributed on the spot during the months of March and April 2022. Logistic regression was used to reveal the real contribution of the collaborations and the information sources to the ability of companies to innovate. The research results indicated that in Bulgaria, the furniture sector is not considered very innovative, and Bulgarian furniture manufacturing companies do not rely on collaboration with the IT and mechatronics sectors. These companies do not want to participate in GVCs, as they refer to them in relation to supply chains. Therefore, they are less dependent on chain shocks. Companies prefer to hide their innovations for further protection, which might be the reason for the lack of cooperation between the furniture manufacturing companies and academia, NGOs, and other relevant institutions. The findings of the study contribute to new insights into the literature on the participation in GVCs as a factor for collaboration with different stakeholders and hence for product and process innovation development within the furniture industry companies.

Suggested Citation

  • Daniela Ventsislavova Georgieva & Nikolay Neykov & Andreja Pirc Barčić & Petar Ćurić & Kristina Klarić, 2023. "Participation of Bulgarian Furniture Manufacturing in Global and Local Value Chains as a Factor Supporting Their Innovation Activities," Sustainability, MDPI, vol. 15(17), pages 1-15, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:17:p:13260-:d:1232682
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    References listed on IDEAS

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    4. Georgieva, Daniela, 2022. "Digitization of Bulgarian furniture manufacturers during the COVID-19," MPRA Paper 116029, University Library of Munich, Germany.
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