Competitiveness analysis of forage enterprises in Northwest China based on a structural equation model

The purpose of this research was to analyze the competitiveness of Chinese forage enterprises using a factor analysis method and a structural equation model. A total of 122 forage enterprises from the predominant area of pasture in Northwest China were investigated. An index system for the competitiveness of forage enterprises was built from five aspects: development ability, asset strength, financial ability, management ability, and technology research and development ability. Factors affecting the competitiveness of forage enterprises were analyzed. The results showed that higher education levels of the employees, larger-scale loans, a greater degree of mechanization, a stronger impact on the local economy, and a faster business growth rate contributed to stronger competitiveness of forage enterprises. Higher input into fixed assets, financial ability and profitability also strengthened their competitiveness. Policy suggestions that were highly recommended included increasing the degree of mechanization of forage processing and broadening their business scope, focusing on the pertinence of fixed asset investment, adjusting and reforming the business model, establishing a sound mechanism for introducing talent, giving full play to forage industry advantages, and cultivating and improving their management levels and the technical skills of their employees.