Evaluation of design application level for ensuring sustainable competitiveness: case of Latvia

Abstract

Purpose – the increasing importance is given to the new, unfolded sources of competitive advantage of companies in the fast changing business environment. The stage of design application level in business is directly correlated to the greater strategic importance given to design in strategic business management and respective demand of professional design by business management in various industries. The aim of this paper is to evaluate the stage of design application in public and private sectors in Latvia and explore the most crucial factors, which influence its potential.

Design/methodology/approach – Survey-based primary research was conducted in companies providing professional services of design to various organisations in various sectors. By analysing data from 85 respondents or 39 % of companies in design industry, summarised results are applied into Design Ladder framework (DDC, 2003) in order to evaluate whether design and its application in broader sense leading to design thinking is perceived as strategically important source of better organisation performance and competitive advantage.

Findings – the main findings of the study indicate that such concepts as strategic design, design management and design thinking are notably entering business environment by having conceptually new applications. However, due to domination of short-term business models, low public awareness of broader forms of design application, design is mainly considered as a form of art or visual element and there is a very limited place in management practices yet in Latvia. Public awareness, innovation policies, education systems have not yet caught up with these developments and these are the problems for further challenges and subject for research in this emerging area.

Research limitations/implications – the research is based on evaluation of design awareness, forms of applications in business management from perspectives of design industry professionals and their experience of design application in the private and public sectors.

Practical implications – this work is useful for executives, who search for development of new sources of competitive advantage to sustain competitiveness in emerging future.

Originality/Value – this is one of the first studies of design awareness, forms of application in management using Design Ladder framework in Latvia.