The contagious effects of the economic crisis regarding wood and furniture sectors in Greece and Cyprus
The present study investigates the consequences of the economic crisis in the wood and furniture sectors of two economically linked countries, Greece and Cyprus, in order to study the contagion mechanisms and its impact on firms' performance. It further compares ways to confront the crisis and indicates strategies that may lead to strong competitive advantages, firms' survival and growth in both countries. In their majority, Greek and Cypriot wood and furniture enterprises have been affected by the crisis negatively or very negatively, while there is a very small percentage showing positive performance. There are many similarities among the companies of the industry in both countries with a time lag of 18–24 months approximately. The evaluation of proposed measures by the Cypriot wood and furniture enterprises for the crisis intervention has indicated better efficient monitoring, innovation, technology and furniture certification according to European norms as the most important ones.
Keywords: economic crisis, furniture industry, wood enterprises, marketing strategies, cross–country contagion, firm performance, Greece, Cyprus