Some experts feel that competitiveness can only be achieved through lowering labour costs.
Freeing enterprises from these constraints, it is argued, is required to elicit new economic dynamism, boost entrepreneurial spirit, raise profit levels and ultimately create the desired new jobs. The other option is through improvement of productivity by expanding the enterprises' capability to pursue process innovations and technology upgrading, increase product and service quality, and expand market opportunities. Recent research in good business performance has shown that while an individual enterprise has limited capacities, it can expand its capabilities by forming partnerships both within and among enterprises. The enterprise can form a partnership with its own workforce through redesign of work organization leading to flatter hierarchies, decentralized decision-making, changed work assignments to gain greater functional flexibility, and the introduction of teamwork. The enterprise can also expand its capabilities by forming partnerships with other enterprises.