THEORETICAL FOUNDATIONS OF
COMPETITIVENESS IN SMES OF THE STEEL
-
AUTOMOTIVE SECTOR IN NORTHEASTERN

MEXICO

FUNDAMENTOS TEÓRICOS DE LA COMPETITIVIDAD EN

PYMES DEL SECTOR SIDERÚRGICO
-AUTOMOTRIZ EN EL
NORESTE DE MÉXICO.

Arlethe Yarí Aguilar Villarreal

Universidad Autónoma de Nuevo León, Facultad de Ciencias Químicas

Jesús Fabián López Pérez

Universidad Autónoma de Nuevo León, Facultad de Contaduría Pública y
Administración
pág. 7203
DOI:
https://doi.org/10.37811/cl_rcm.v9i4.19313
Theoretical Foundations of Competitiveness in SMEs of the Steel
-
Automotive Sector in Northeastern Mexico

Arlethe Yarí Aguilar Villarreal
1
arlethe.aguilarvll
@uanl.edu.mx
https://orcid.org/0000-0002-1438-2180

Universidad Autónoma de Nuevo León,
Facultad de Ciencias Químicas

San Nicolás de los Garza, Nuevo León, México

Jesús Fabián López Pérez

jesus.lopezpz
@uanl.edu.mx
https://orcid.org/0000-0002-8283-6359

Universidad Autónoma de Nuevo León,

Facultad de Contaduría Pública y
Administración

San Nicolás de los Garza, Nuevo León, México

ABSTRACT

This article presents a theoretical review of the factors that influence the competitiveness of small and

medium
-sized enterprises (SMEs) in the steel-automotive sector in Northeastern Mexico. Based on a
rigorous analysis of academic literature and nationa
l and international empirical studies, twelve key
variables affecting the level of SME competitiveness are identified. These factors include: degree of

technological innovation, productivity, energy efficiency, business profitability, level of Industry 4.0

adoption, strategic alliances, supply chain, employee training, globalization, innovation capacity, market

orientation, and quality. The main objective is to establish a robust theoretical framework that explains

how these variables interact and shape com
petitiveness in a global, dynamic, and highly demanding
environment such as the steel industry linked to the automotive sector. Findings from previous research

are integrated to support the relevance of each construct, enabling the design of a measurement

instrument to assess the level of business competitiveness. This work aims to contribute to the

development of a theoretical foundation for understanding the impact of competitiveness on industrial

SMEs, and to offer a basis for the design of strategies th
at enhance their performance in both national
and international markets.

Keywords:
Competitiveness, SMEs, Steel Industry-Automotive Sector, Theoretical Framework,
Northeastern México

1
Autor principal.
Correspondencia:
arlethe.aguilarvll@uanl.edu.mx
pág. 7204
Fundamentos teóricos de la competitividad en PyMEs del sector
siderúrgico-automotriz en el noreste de México.

RESUMEN

Este artículo desarrolla una revisión teórica sobre los factores que inciden en la competitividad de las
pequeñas y medianas empresas (PyMES) del sector siderúrgico-automotriz en el Noreste de México.
Con base en un análisis riguroso de literatura académica y estudios empíricos nacionales e
internacionales, se identifican 12 variables clave que influyen en el nivel de competitividad de las
PyMES, los factores relacionados son: grado de innovación tecnológica, productividad, eficiencia
energética, rentabilidad empresarial, nivel de adopción de tecnologías 4.0, alianzas estrategias, cadena
de suministros, nivel de capacitación para el personal, globalización, capacidad innovadora, mercado y
calidad. El objetivo principal es establecer un marco teórico robusto que explique cómo estas variables
se relacionan y condicionan la competitividad en un entorno global, dinámico y altamente demandante
como el de la industria del acero vinculada al sector automotriz. Se integran hallazgos de investigaciones
previas que sustentan la pertinencia de cada constructo, lo que permite diseñar un instrumento de
medición para diagnosticar el nivel de competitividad empresarial. Este trabajo busca contribuir en el
desarrollo del marco teórico que permita comprender el impacto de la competitividad en PyMEs
industriales, así como ofrecer una base para el diseño de estrategias que impulsen su desempeño en
mercados nacionales e internacionales.

Palabras clave:
Competitividad, PyMEs, Sector Siderúrgico-Automotriz, Marco Teórico, Noreste de
México
.
Artículo recibido 10 julio 2025

Aceptado para publicación: 16 agosto 2025
pág. 7205
INTRODUCTION

On a global scale, micro and small enterprises (MSEs) play a fundamental role in economies, not only

due to their capacity to generate employment and income, but also for their contribution to productive

dynamism, innovation, and economic growth (OECD, 202
1). However, the advancement of
globalization has intensified competition, particularly with large multinational corporations, which has

weakened the competitive position of many local businesses (Porter, 2007). In this context, Wanjohi

(2008) highlights t
hat the business environment is one of the determining factors for the sustained
growth of MSEs.

In Latin America, these enterprises are a vital pillar of the productive structure. According to the

Economic Commission for Latin America and the Caribbean (ECLAC, 2021), micro and small

businesses account for 99% of all businesses and generate approximat
ely 67% of regional employment
(Europyme, 2021). Nevertheless, their impact on economic development still faces limitations due to

structural barriers that affect their competitiveness.

In Mexico, the steel industry holds significant weight in the national productive apparatus, largely

comprised of micro and small enterprises. These organizations face major competitive challenges, both

domestically and internationally, especially in their
linkage to strategic sectors such as the automotive
industry, where the competition for market positioning is increasingly intense (Espinoza, Cavazos, &

Cruz Álvarez, 2019). Within this context, MSEs in the steel
-automotive sector emerge as key players
fo
r economic development, while requiring strengthening strategies to improve their participation in
global value chains (Nahuat Arreguín, Blanco Jiménez, Cruz, & Buenrostro, 2016).

The steel industry represents a strategic sector in northeastern Mexico, particularly in the states of Nuevo

León and Coahuila. In Nuevo León, the steel value chain encompasses various activities, including raw

material production, pipe manufacturing, cast
ing and rolling processes, production using electric
furnaces, service centers, marketing, and other steel
-related industries (CANACERO, 2023).
In Coahuila, pipe production and steelmaking using both blast and electric furnaces are also

concentrated. The state also benefits from significant mineral deposits and a strategic border location

that provides customs infrastructure for the import and exp
ort of steel products (CANACERO, 2023).
pág. 7206
Within the national supply chain, the basic iron and steel industry, along with the manufacture of derived

products, are key sectors in supplying the automotive industry. According to INEGI (2021), inputs from

the steel sector account for 6.3% of the total
demand from the automotive industry, making it the second
most important source, only surpassed by the manufacture of auto parts.

A significant portion of regional steel production is destined for the automotive industry, which is

divided into two main branches: final vehicle assembly and auto parts manufacturing. This study focuses

on companies dedicated to the production of vehicle
s and engines.
According to INEGI (2021), the Mexican automotive industry is primarily concentrated in ten federal

entities, which account for 97.5% of national production and generate 88.8% of sectoral employment.

Coahuila ranks second nationwide in automobile and truck
manufacturing, with a 15.9% share, while
Nuevo León ranks sixth, with 8.6% of total production.

Globally, automotive production is divided into two major categories: light and heavy vehicles. In

Mexico, the official classification defines light vehicles as passenger cars with up to eight seats, as well

as light commercial vehicles such as pickups, SU
Vs, minivans, and panel trucks. Heavy vehicles include
trucks over seven tons and buses with a capacity for more than eight passengers and also exceeding that

weight.

The automotive value chain relies on both domestic and imported inputs from various economic sectors.

In this regard, 41.5% of the inputs used are of national origin, while 58.5% come from foreign sources.

Among the most relevant national inputs are those
from the basic iron and steel industry, which account
for 72.7% domestic participation, as well as the manufacture of iron and steel products, with 85% of

components being domestically sourced.

The competitiveness of small and medium
-sized enterprises (SMEs) in the steel-automotive sector in
Mexico faces challenges that limit their ability to integrate sustainably and efficiently into national and

international value chains. Despite the economic
and strategic relevance of this industry, significant gaps
remain. This work presents empirical studies on the competitive performance of SMEs across various

sectors, particularly in this sector, which is highly relevant to the country's economic developme
nt.
This contribution provides a theoretical framework that encourages the development of analytical

instruments and effective strategies to strengthen the competitive position of these companies. The aim
pág. 7207
is to create a solid conceptual base that allows for comparison between studies and contexts, reflecting

the generation of cumulative and transferable knowledge. This article outlines a comprehensive

theoretical model that identifies, classifies, and relat
es the most relevant variables influencing the
competitiveness of these types of organizations.

This study presents the consolidation of a robust theoretical framework that underpins the analysis of

competitiveness in SMEs within the steel
-automotive sectora strategic segment for industrial
development in northeastern Mexico. The theoretical approac
h helps systematize existing knowledge
and facilitates the identification of conceptual gaps and the integration of dispersed empirical findings.

This theoretical contribution is key for guiding future research focused on business strengthening and

perform
ance evaluation mechanisms.
The conceptual framework presented offers a useful tool for developing diagnostic instruments to

measure business competitiveness levels. This work contributes theoretical knowledge about

competitiveness in key industrial sectors.

THEORETICAL FRAMEWORK

As part of this research, a theoretical review is presented for each of the proposed variables in relation

to the dependent variable of competitiveness, as the central focus of study in this context.

Technological Innovation Degree

Regarding the variable of technological innovation degree, Skuza et al. (2020) state that despite the

growing demand for steel in Poland, the restructuring process of recent decades has driven both

structural and technological change in the steel industry.
The privatization of major steel producers and
the influx of foreign capital have placed Polish metallurgy in a challenging period due to rising energy

prices, CO₂ emission fees, and a market shift toward “green steel.”

Additionally, Sekiguchi (2021) argues that OECD countries experienced an increase in steel production,

which led to improved international competitiveness. At the micro level, the analysis evaluated the link

between technology and export performance of maj
or non-OECD steel-producing countries. The
technology selection of Chinese steel companies has contributed to the development of the steel

industry.
pág. 7208
On the other hand, Yuguo et al. (2021) present a study in which the development and application of a

multidimensional model provide a method for assessing low
-carbon emissions. This technique helps
determine a company’s carbon level and raise awareness amo
ng stakeholders about competitiveness
trends in low
-carbon contexts. Low-carbon competitiveness will become an integral part of business
rivalry and a driving force for corporate survival and sustainability.

Tong et al. (2022) investigated the impact of core technological competence on the competitive

advantage of high
-tech SMEs in China, using 379 survey responses and a Structural Equation Modeling
(SEM) approach. The results show that infrastructure and tech
nology, advanced technologies, and R&D
capacity significantly affect competitive advantage and organizational flexibility, which mediates the

relationship between R&D and competitiveness. The study highlights the importance of strengthening

technological i
nfrastructure and organizational adaptability to achieve competitive advantage.
Radicic et al. (2023) analyzed the impact of digitalization on technological product and process

innovations in German SMEs using data from the Mannheim Innovation Panel (MIP). They assessed

three types of digitalization: production and logistics, digital
value chains, and big data analytics using
binary probit models across different company sizes. Results showed a heterogeneous impact depending

on the type of digitalization and innovation. Internal R&D mitigates the effect of digitalization, proving

to be
beneficial for SMEs.
Finally, Merung A.Y. et al. (2024) examined social capital, technological innovation, and

entrepreneurial orientation and how they influence the competitiveness of MSMEs in Kintamani, Bali.

Using quantitative analysis with data from 276 firms and a SEM
-PLS model, they found a positive
correlation between competitiveness, social capital, innovation, and entrepreneurial behavior. Social

capital acts as a moderator, strengthening the effects on competitiveness. The model showed a good fit,

suggesting strategie
s to improve competitiveness and sustainable growth in Kintamani through
enhanced social capital, technology adoption, and entrepreneurial orientation.
pág. 7209
Productivity

As an independent variable, productivity has been examined in several studies. Conceição et al. (2017)

presented a scenario where it was necessary to increase competitiveness without additional

investment
only by optimizing products and the production process. The objective was achieved by
updating equipment and reducing waste in certain areas. Ultimately, the project led to a 41% increase

in productivity through the implementation of Lean tools. It also met customer demand and avoided the

need to purchase
a new production line, resulting in significant cost savings for the company while
minimizing losses from the original line through increased output.

Similarly, Kumar (2021) argues that in India, over the past 30 years, both steel production and

consumption have increased, leading to expanded production capacity. However, the competitiveness

of India’s steel industry does not show a significant break fr
om the pre-reform decade. Real
productivity
both labor and capitalhas improved during the period studied. Kumar concludes that
productivity is a critical factor in competitiveness. Using longitudinal time
-series data, he offers a
measurement framework to
evaluate productivity trends, attributable to technological progress, under
the identification of three key parameters for India’s steel industry: changes in ownership structure, trade

integration, and technological shifts in production routes.

Additionally, Owalla et al. (2022) conducted a systematic literature review to map global research on

SME productivity, analyzing 109 empirical studies. They identified six key themes influencing

productivity: organizational environment, capabilities, inve
stment, types of innovation, external
knowledge base, and commercialization. The results reveal the fragmented nature of current research

and significant knowledge gaps. The authors propose a future research agenda and discuss policy

implications for enhan
cing SME productivity in the context of evolving global trends.
Mansur et al. (2023) assessed the impact of various capabilities and orientations on the competitiveness

of informal small businesses in Surabaya. Using surveys from 187 participants and SEM analysis,

findings showed that production capacity, innovation, a
nd labor productivity positively influence
performance and competitiveness. Innovation and labor productivity contribute to competitiveness

through performance. These results underscore the importance of strengthening productive and

innovative capacities t
o enhance competitiveness.
pág. 7210
Energy Efficiency

Chowdhury et al. (2018) report that in the United Kingdom, the industrial and manufacturing sectors

face a major challenge in contributing to the national goal of reducing CO₂ emissions by 80%, while

also improving economic competitiveness in the face of l
ow-cost imports. The study explores energy
efficiency improvements from three perspectives: steam network system efficiency, waste heat recovery

technologies, and bioenergy utilization, particularly in two sectors
the iron and steel industry and the
food a
nd beverage sector. Currently, there are no standardized business models for energy efficiency in
industry, so adapting a known business model that integrates energy systems optimization is necessary.

Haider et al. (2019) conducted an analysis comparing energy use in India’s steel industry. The objective

was to estimate energy efficiency within the framework of total factor productivity and identify potential

energy savings across states at optimal scal
e. The study recommends implementing a standardized
energy efficiency program and promoting a market
-based and regulatory mechanism to realize the
enormous energy
-saving potential.
Vögele et al. (2020) provide a broad overview of the challenges facing the steel industry in the European

Union, such as volatile input prices, uncertainties regarding CO₂ regulations, emissions, and market

shocks caused by import tariffs.

Radoslaw (2020) also studied the steel sector
critical to both Poland’s national economy and the global
market. In response to global steel market challenges and the need to boost competitiveness, the study

outlines a series of actions to improve energy ef
ficiency in steel production. It seeks to identify energy
efficiency trends within companies, particularly those aiming to improve production processes. It offers

investment policy recommendations for Poland’s steel sector in the Industry 4.0 era. The prop
osed
econometric model shows the relationship between electricity consumption per ton of steel and

investment levels, linking these expenditures to Industry 4.0 implementation strategies. The study

suggests that steel companies should engage in network
-based cooperation with cyber-physical
intelligence to improve flexibility along the supply chain and reduce energy consumption.

Stroud et al. (2020) propose energy efficiency as a key area of innovation activity in the European steel

industry, with authorities aiming to “green” worker behavior. The focus is on combining digital

innovation and strategic management with gamification
to drive behavioral change toward energy
pág. 7211
efficiency. The study presents challenges for workers and unions in the sector, highlighting the dual

pressure of green transformation and digitalization. It outlines labor relations, digital innovation

management for green practices, and potential outcome
s for workers within a heavily unionized
industry.

Talaei et al. (2020) developed a system
-based model to assess the long-term potential of energy
efficiency alternatives in reducing household gas emissions. A case study was conducted on Canada’s

iron and steel sector. The results informed the development
of energy demand projections, offering
detailed insights into unit operations, fuel types, and energy intensities. These data were used in a long
-
term energy alternatives planning model.

Di Foggia (2021) analyzed how energy
-efficient servitization capabilities impact business performance
in 293 manufacturers of electrical and machinery equipment. Using two structural equation models, the

mediating role of servitization was assessed in rela
tion to competitive strategy analysis and regulatory
framework awareness. The findings show both factors positively influence business performance

through servitization. The growing demand for energy
-efficient products and energy management
services highli
ghts the importance of these approaches for decarbonization and enhanced industrial
competitiveness.

Gąsior et al. (2022) also studied the relationship between energy
-efficient servitization and business
performance in 293 manufacturers of electrical and machinery equipment. Using structural equation

models, they tested how competitive structure analysis
and regulatory knowledge affect performance
through servitization. Results show both factors significantly enhance business performance. With

expected growth in demand for energy
-efficient products, the need for lower energy footprints and
energy managemen
t services becomes critical to support industrial decarbonization and
competitiveness.

Majid et al. (2023) examined the impact of eco
-efficiency actionssuch as resource savings and
renewable energy use
on SME performance across 28 EU countries. Using survey data and logistic
regression analysis in SPSS, they analyzed how these practices inf
luence costs, investments, and
barriers. Findings reveal that SMEs often lack information about the financial and innovation benefits
pág. 7212
of these practices. The results provide guidance for SMEs and policymakers to promote sustainable

development and improved decision
-making.
Tazhibekova et al. (2024) evaluated the environmental sustainability of SMEs in Kazakhstan by

analyzing their adoption of green strategies and energy
-saving technologies through surveys with
entrepreneurs and managers. Results indicate high environmental a
wareness and willingness to
implement sustainable practices, reflecting SMEs’ potential for sustainable development. The growing

adoption of energy
-efficient technologies enhances competitiveness and reduces ecological footprints.
These findings support th
e development of effective environmental policies and green investment
strategies to strengthen SMEs’ resilience and environmental responsibility.

Business Profitability

As part of the study, business profitability was also considered an independent variable. Nguyen et al.

(2016) developed a research model to examine the influence of organizational capabilities in Taiwan’s

steel industry, considering manufacturing strategy
, business performance, and the effect of
manufacturing strategy on performance. The study concluded that organizational capabilities positively

affect both the manufacturing strategy and business performance. The results empirically verify that

improving
organizational capabilities is the most critical factor for enhancing manufacturing strategy
and business outcomes. The authors suggest that Taiwanese steel companies should strengthen their

organizational capabilities to develop manufacturing strategies t
hat improve profitability.
Vătămănescu et al. (2017) analyzed the relevance of strengthening relational capital in SMEs operating

in a globalized market. Their study demonstrated how competitiveness influences business networks

with the goal of facilitating the internationalization
of European SMEs in the steel tube sector. The
results indicate that internationalization effectiveness is indirectly influenced by competitiveness, which

drives SME managers to leverage personal and organizational relationships through consistent work

net
works and capitalized trust. At this level, business networking had a positive and significant impact.
Lesáková et al. (2019) analyzed SME profitability in Slovakia’s mechanical engineering industry by

evaluating influential internal and external factors. Using the DuPont pyramid analysis and survey data,

the study identified elements affecting profitabilit
y. Friedman and Wilcoxon tests were applied to assess
survey responses and test three defined hypotheses. The findings provide key guidelines for short
- and
pág. 7213
long
-term decision-making, highlighting the importance of strategically managing profitability in this
essential sector of Slovakia's economy.

Ramirez
-Garzon et al. (2020) assessed the application of the Organizational Management
Modernization Model (MMOM) and its impact on Return on Assets (ROA) in 144 Colombian SMEs.

Using multiple regression analysis, they found that components such as strateg
ic direction, production
management, human resource management, logistics, and innovation and knowledge accounted for 20%

to 23% of profitability. The findings underscore the importance of these organizational elements for

business competitiveness and thei
r influence on SME profitability, providing a foundation to improve
management and performance in the sector.

Gajdzik et al. (2021) analyzed resource intensity in the Polish steel industry and its relationship with

investment, focusing on energy consumption during steel production. Using statistical data from 2004

to 2018, the authors developed econometric models
to evaluate the impact of investment on reducing
electricity and coke consumption per facility. The results confirmed that higher investments contribute

to reducing resource intensity, thus improving competitiveness and environmental protection. These

find
ings are relevant for public policy and business leaders, suggesting a focus on technological
investments to optimize efficiency and sustainability.

Shashina et al. (2022) emphasized that profitability management is key to improving long
-term
efficiency and business competitiveness. Their study analyzed how to optimize profitability through an

integrated model within the company’s general strategy. The
importance of internal factors such as
productive efficiency, organizational structure, leadership quality, and asset composition is highlighted.

The proposed model includes an information base and indicator system to evaluate both internal and

external e
nvironments, aligning with strategic goals. Proper implementation of the model can identify
opportunities and ensure sustainable economic growth.

Mansur et al. (2023) studied various factors influencing performance and competitiveness in informal

small businesses in Surabaya, Indonesia. Based on primary data from 187 surveys and using Structural

Equation Modeling (SEM), results show that production
capacity, innovation, and labor productivity
significantly affect performance and competitiveness. Market orientation, however, only affects

competitiveness. Furthermore, innovation and labor productivity enhance competitiveness through their
pág. 7214
influence on business performance. This study offers key insights for improving business

competitiveness.

Henríquez
-Calvo (2024) analyzed activities, limitations, and challenges related to process innovation in
56 Colombian exporting SMEs through a 19
-question survey, artificial neural networks (ANN), and
Spearman correlation. The findings reveal that collabor
ation with research institutions and suppliers is
critical for process innovation, which is prioritized by SMEs to boost competitiveness. Innovation was

linked to growth, productivity, and internationalization, despite Colombia’s innovation gap. Companies

are investing in R&D and external collaboration with a focus on efficiency. The study recommends

exploring innovation connections using machine learning.

Strategic Alliances

Strategic alliances were also studied as an independent variable. Yeh et al. (2017) report that companies

seek to create synergy through research and development partnerships. This study examines the

performance of firms within such alliances, focusing on
their dependence on resources, organizational
learning, and the impact on alliance performance. The results indicate that alliances have significant

implications for effectiveness, and practitioners aim to improve their outcomes. A company’s ability to

lev
erage both internal and external R&D activities influences its capacity to generate economic value
through innovation and sustain its competitive advantage.

Adoption Level of Industry 4.0 Technologies (First Part)

Götz et al. (2020) reported on the implications and effects of adopting Industry 4.0 in internationally
-
oriented companies. Their study reveals that businesses are preparing to face challenges such as

acquiring the necessary knowledge and becoming familiar
with implementing 4.0 technologies. The
study highlights that the path toward Industry 4.0 favors quality over low cost, arguing that a company's

competitiveness will depend on its maturity in adopting Industry 4.0. Furthermore, this impact is shaped

by c
ooperation among partners.
Sima et al. (2020) explored major opportunities and challenges, especially in education, related to

changes in the work environment brought by Industry 4.0, such as evolving occupations, job profiles,

and other human capital drivers. The study analyzes con
sumer behavior and workforce development
from the perspective of the Fourth Industrial Revolution. The findings reflect technological shifts
pág. 7215
especially digitalization, information technology, and communication technologies
as drivers of
transformation in labor dynamics and competitiveness.

Miśkiewicz et al. (2020) conducted a case study analyzing the implementation of digitalization in a

manufacturing company, which led to improved efficiency and changes in the organizational structure.

The study emphasizes that technological changes require
the integration of information technologies.
The authors recommend that production companies adopt digital processes and cloud computing to

improve production efficiency and financial performance. Applied specifically to the steel industry

where digital p
roduction processes are still rare, this study identifies the need to address multiple
dimensions: economic, political and legal, environmental, technical, technological, and

sociodemographic. Technological changes also imply the adoption of IT and communi
cation systems
for production management.

As part of the analysis, the study highlights the importance of identifying all relevant domains necessary

for the transformation of the steel industry under Industry 4.0, including economic, legal, environmental,

technical, and demographic aspects. This h
olistic view reinforces the idea that digital transformation
must be systemic to improve competitiveness.

Technological changes also demand the implementation of information and communication systems for

production management. In particular, the integration of these technologies enables real
-time
monitoring, enhanced traceability, and data
-driven decision-making, which are critical to optimizing
steel production processes and reducing inefficiencies.

Moreover, companies must not only invest in technologies but also in the upskilling of their workforce

to handle new tools and adapt to a digitally connected production environment. The transition to Industry

4.0 goes beyond machinery, it implies cultural
and organizational change.
In summary, the literature highlights that the level of Industry 4.0 adoption is a determining factor in the

competitiveness of firms in the steel sector. Organizations that are able to integrate advanced

technologies with flexible, data
-driven management strategies are more likely to maintain a sustainable
competitive advantage in increasingly dynamic and globalized value chains.
pág. 7216
Supply Chain Management

As part of the study, the variable supply chain was analyzed. Popescu et al. (2016) conducted an analysis

and assessment of the growth in excess steel production capacity and its integration into the international

supply chain, as well as the effects of st
eel manufacturing on employment in the United States. This
study provides evidence on mechanisms that drive top
-tier productivity growth in the U.S. steel industry,
the growth models within international steel supply chains, and the advantages of implement
ing
corrective trade measures for this sector.

Pradabwong (2017) examined the interrelationships between business process management and supply

chain collaboration, collaborative advantage, and organizational performance. The study highlights the

role of both intra
- and inter-organizational practices, demonstrating the combined and joint impact of
business process management and supply chain collaboration. The author suggests that focusing solely

on internal improvements is insufficient and that enhancing supply chain collaboration is necessary to

raise
overall organizational performance levels.
Pinto et al. (2020) conducted a study identifying various strategies for supply chain integration aimed at

self
-sufficiency and resource ownership retention. In this case study of the European steel industry,
improvements were reported that increased the s
elf-sufficiency of raw materials and retention of
resource ownership. The study also describes the adoption of vertical integration strategies on the supply

side, and horizontal strategies at end
-of-life stages for recycling, restoration services, repairs, and
maintenance. These approaches strengthen the resilience and sustainability of the supply chain,

contributing to the long
-term competitiveness of steel-producing companies.
Training and Workforce Development

As part of the study, workforce training was analyzed as a variable. Carreño et al. (2016) presented the

results of research conducted on a sample of companies from the steel and metal
-mechanical sectors in
the department of Boyacá, Colombia. The study eva
luated workers’ standing in relation to the labor
competency standards relevant to their daily activities. The objective was to highlight the importance of

human talent training as a key factor for business competitiveness.

Evans et al. (2016) presented a study that explores the actions needed to “green” existing occupations

and meet the skill demands of new environmental sectors and jobs. The authors argue that efforts to
pág. 7217
green the workforce are developing at different levels of intensity, primarily due to variations in

institutional contexts. These efforts include adapting existing training systems and creating new skill

frameworks to respond to the environmental transform
ation of industries like steel.
Bismala et al. (2017) analyzed how to optimize human resource management (HRM) to improve the

competitiveness of 69 SMEs using observations, surveys, interviews, and literature review. The results

show that SME competitiveness increases when key HRM functi
ons are strengthenedsuch as targeted
recruitment based on skills and knowledge, employee retention through fair compensation and a positive

work environment, talent development, and performance evaluation using objective and equitable

indicators. This com
prehensive HRM approach is emphasized as an essential strategy to enhance
competitiveness in small and medium
-sized enterprises.
Globalization

As part of the study, globalization was analyzed as an independent variable. Parc (2018), using the

generalized double diamond model, incorporated internationalization as a crucial element
especially
for Asian countries such as Japan. The study compared Ja
pan’s competitiveness with neighboring
countries competing in the global market. It concluded that Japan’s current economic challenges and its

slow recovery are due more to a lack of globalization compared to its regional counterparts, rather than

specific
macroeconomic issues.
Konak et al. (2019) presented a study aiming to test the effect of steel production on global output and

the Global Competitiveness Index. The analysis examined the extent to which iron and steel production

influence these variables. According to the resul
ts, a one-unit increase in total steel production boosts
long
-term economic growth by 0.104 and short-term growth by 1.386 units. Additionally, a one-unit
increase in steel production reduces unemployment in the long term by 0.105 units, and global

competi
tiveness increases by 0.22 units.
Yuguo et al. (2021) assumed that low
-carbon competitiveness is an effective way for companies to
remain relevant in the global green economy agenda. They selected three Chinese steel companies as

case studies and assessed their low
-carbon performance using a set of mathematical methods. The
approach allowed them to quantitatively compare the low
-carbon competitiveness of the three firms.
pág. 7218
The proposed evaluation method demonstrates the capacity to measure and compare the abstract concept

of low
-carbon competitiveness, emphasizing its growing importance in a globalized context.
Innovation Capacity

Innovation capacity was also considered an independent variable in this study. Álvarez et al. (2021)

provided empirical evidence on the complementarity between different sources of knowledge and

innovation performance in manufacturing companies in Argentin
a's automotive and iron & steel
industries. The authors tested the relationship between national and foreign knowledge sources and their

influence on innovation.

The findings reveal that while international markets and activities can enhance firms’ innovation

performance, they do not necessarily undermine local knowledge bases. This supports the argument in

favor of building national and local capacities
particularly relevant for Latin American countries.
These empirical results highlight the ongoing relevance of developing internal capabilities within firms

as a foundation for absorbing external knowledge, especially in emerging economies. Furthermore, they

emphasi
ze the predominance of embedded knowledge acquisition as a key mechanism for innovation in
developmental contexts.

Market Orientation

Market orientation was also analyzed as an independent variable. Guzmán et al. (2019) conducted an

econometric analysis of steel production in Mexico to determine the price elasticity of domestic steel

production and quantify the impact of international pr
ices on wholesale prices in Mexico. The study
covered annual data from 1980 to 2017 and included three regression equations.

The findings indicate that in both the short and long term, steel production in Mexico responds

inelastically (0.0425% in the short term and 0.2419% in the long term) to a 1% change in its own price.

Additionally, the international steel price influences M
exico’s wholesale price by a factor of 0.05 for
every 1% change. These results suggest that international market conditions are a significant determinant

of pricing and competitiveness in the domestic steel industry.

Quality

Finally, quality was analyzed as part of the theoretical framework. Whang (2017) conducted an analysis

of bilateral trade data from the 83 largest economies in the world to examine the relationship between
pág. 7219
empirical findings and theoretical models. The study found support for a “quality competition” model

rather than a “price competition” one. In this model, companies in countries with a comparative

advantage in a particular product tend to improve product q
uality rather than reduce production costs
competing on price adjusted for quality. The results emphasize the strategic importance of product

quality in differentiated product markets.

Compañero et al. (2021) conducted a study based on interviews to identify the different quality

dimensions of steel scrap. The research revealed varying definitions among scrap traders and steel mills

regarding the desired condition, physical state, shape,
size, and homogeneity of the material. The study
established that the relationship between quality and the level of information about material

characteristics increases opportunities for efficient resource use.

Valdez de la Rosa et al.
(2021) identified the causal relationship between independent variables such as
process quality and product innovation, and the dependent variable of competitiveness in the

manufacturing sector of the automotive industry, which relies heavily on steel inpu
ts. The study found
that both process quality and product innovation have independent and positive causal effects on

competitiveness in automobile manufacturing.

RESEARCH OBJECTIVE

To develop a comprehensive theoretical framework that identifies and analyzes the key factors

influencing the competitiveness level of micro, small, and medium
-sized enterprises (MSMEs) in the
steel
-automotive sector in northeastern Mexico, based on a review of specialized literature and empirical
evidence. The purpose is to support future research and inform the design of strategies aimed at

strengthening the competitive position of this sector.

METHODOLOGY

This study adopts a qualitative, exploratory approach based on a systematized theoretical and

documentary review. An extensive search of scientific literature was conducted, selecting documents

published between 2005 and 2023.

As a result, over 80 primary sources were analyzed, from which theoretical constructs and variables

related to business competitiveness were extracted. In addition, national and international empirical

studies were included to validate and contextualize th
e identified factors.
pág. 7220
Through thematic and comparative analysis, the variables were organized into conceptual categories,

and an integrative theoretical framework was proposed. This framework comprises 12 key factors that

influence the competitive performance of SMEs in the ste
el-automotive sector in northeastern Mexico.
RESULTS

The analysis led to the identification of 12 critical variables consistently associated with competitiveness

levels in industrial SMEs, particularly those linked to the steel
-automotive sector. These variables are:
1.
Degree of Technological Innovation
2.
Productivity
3.
Energy Efficiency
4.
Business Profitability
5.
Adoption Level of Industry 4.0 Technologies
6.
Strategic Alliances
7.
Supply Chain
8.
Employee Training Level
9.
Globalization
10.
Innovative Capacity
11.
Market Orientation
12.
Quality
These factors were categorized into internal dimensions (degree of technological innovation,

productivity, business profitability, innovative capacity) and external dimensions (strategic alliances,

globalization, market orientation). Additionally, the anal
ysis confirmed the importance of interactions
between variables such as technological innovation, employee training, energy efficiency, and

profitability in enhancing competitiveness.

DISCUSSION

The theoretical framework presented shows that the competitiveness of SMEs in the steel
-automotive
sector does not rely solely on internal factors such as productivity or quality, but rather on the dynamic

combination of technological capabilities, linkage
strategies, and adaptability to the global environment.
pág. 7221
The literature shows consensus that the incorporation of emerging technologies (such as Industry 4.0)

and continuous workforce training are key catalysts for enhancing competitive performance.

There are identified theoretical gaps regarding the integrated measurement of these factors and how they

interrelate under the specific conditions of the Mexican industrial context. The proposed theoretical

framework aims to fill this gap by serving as a f
oundation for future research that can empirically
validate the relationships between the variables, as well as for the development of diagnostic instruments

and strategic proposals aimed at improving business competitiveness. This theoretical approach can
be
adapted and applied to industrial sectors across Latin America, contributing to the conceptual

understanding of competitiveness in emerging economies.

Based on a systematic analysis of literature and empirical studies, twelve variables were identified as

having a significant impact on the competitiveness of SMEs in the steel
-automotive sector in
northeastern Mexico. These variables were organized into an
integrative conceptual model based on four
key dimensions: technological, internal organizational, external environment, and human capital.

The results highlight relevant relationships between variables, such as the direct influence of

technological innovation on productivity and innovation capacity; the contribution of Industry 4.0

adoption to energy efficiency and profitability; and the stra
tegic role of alliances and supply chain
management in integration into global markets. Furthermore, the cross
-cutting effect of workforce
training on multiple dimensions of business performance is emphasized. This theoretical model provides

a structured v
iew of the interrelated factors that shape the competitiveness of industrial SMEs, enabling
further empirical validation and the development of diagnostic tools to support strategic decision
-
making within the sector.

CONCLUSIONS

This study proposes a comprehensive theoretical framework that synthesizes the main factors

determining the competitiveness of micro, small, and medium
-sized enterprises (MSMEs) in the steel-
automotive sector. It is based on an exhaustive review of scienti
fic literature and empirical evidence.
The conceptual model developed identifies 12 key variables and establishes connections among them,

allowing for an understanding of their interaction within a complex and highly competitive industrial

environment.
pág. 7222
Among the main findings are the central role of technological innovation, the adoption of emerging

technologies, and workforce training as strategic pillars for strengthening competitiveness. Additionally,

the study underscores the need to improve connecti
ons with international markets, optimize production
processes, and consolidate strategic alliances to enhance business positioning.

The primary value of this research lies in its theoretical contribution: it offers a solid conceptual

foundation that can serve as a starting point for quantitative studies, the development of measurement

instruments, and the design of intervention strateg
ies for industrial SMEs. Furthermore, the model has
the potential to be adapted to other manufacturing sectors in similar contexts, thereby broadening its

applicability and relevance in the study of business competitiveness in emerging economies.

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