Institutional Conditions for Increasing The Competitiveness of Service Enterprises
Abstract
In the context of the radical modernization of Uzbekistan’s economy, enhancing the competitiveness of service enterprises has become a strategic objective. Despite the growing significance of the service sector, its development is constrained by outdated institutional frameworks and the lack of coordinated efforts between key stakeholders. Current literature provides fragmented analyses of institutional factors, often neglecting the dual role they play in enabling and hindering enterprise competitiveness. This study aims to identify and evaluate institutional conditions legal, financial, technological, and infrastructural that influence the competitiveness of service enterprises, with particular attention to public-private partnerships. The findings reveal that a combination of enabling legal regulations, financial accessibility, skilled labor availability, digital infrastructure, and intersectoral collaboration significantly contribute to enterprise competitiveness. Conversely, institutional barriers such as bureaucracy, corruption, and institutional inertia obstruct progress. A comprehensive classification of institutional factors was developed to distinguish between encouraging and obstructive elements. This paper uniquely integrates institutional theory with service enterprise development, proposing a systematic framework for institutional factor analysis. Policymakers and stakeholders should harmonize institutional reforms with the practical needs of service enterprises by streamlining legislation, supporting vocational education, fostering innovation, and promoting PPPs. These efforts are critical for achieving a sustainable and competitive service sector.
References
J. Tribe, The Economics of Recreation, Leisure and Tourism. Elsevier, 2005.
P. Drucker, Innovation and Entrepreneurship: Practice and Principles. Harper & Row, 1985.
OECD, Tourism Trends and Policies. Organization for Economic Cooperation and Development, 2020.
Y. Abdullayev, Economics of Tourism and Services. Tashkent: Economics Publishing House, 2021.
Sh. Gulomov, "Tourism potential of Uzbekistan and prospects for its development through entrepreneurship," Journal of Economic Research, no. 4, 2022.
D. Kurbonov and M. Yusupov, "Public-private partnership mechanisms in tourism: theory and practice," Newsletter of Innovative Development, no. 2, 2023.
National Statistics Agency, "Statistical collection of the services sector for 2017–2023". [Online]. Available: stat.uz
J. Sabirova, "TOURISM IN UZBEKISTAN: FACTORS INCREASING TOURIST INFLOW," Central Asian Journal of Tourism and Regulation Policy, vol. 1, no. 1, pp. 1-12, 2025.
S. Akhunova and F. Askarov, "Perspectives for the Further Development of Smart Tourism in Uzbekistan," YASHIL IQTISODIYOT VA TARAQQIYOT, vol. 1, no. maxsus son, 2023.
Y. K. Zhakupov et al., "The impact of entrepreneurship on the socio‐economic development of regions," Business Strategy & Development, vol. 6, no. 1, pp. 13-19, 2023.
National Statistics Agency, "Statistical collection of the services sector for 2017–2023". [Online]. Available: stat.uz
Y. Subramaniam and T. A. Masron, "The impact of tourism on entrepreneurship in developing countries," Business Strategy & Development, vol. 5, no. 3, pp. 153-164, 2022.
National Statistics Agency, "Statistical collection of the services sector for 2017–2023". [Online]. Available: stat.uz
I. Ergashev and N. Farxodjonova, "Integration of national culture in the process of globalization," Journal of Critical Reviews, vol. 7, no. 2, pp. 477-479, 2020.
I. R. Patterson and H. Tureav, "New developments in promoting tourism in Uzbekistan," Journal of Tourismology, vol. 6, no. 2, pp. 201-219, 2020.
E. Aimagambetov, M. F. Grela, and R. Bespayeva, "Ways of Improving the Efficiency of the Organization of Business Activity in Tourism on the Basis of Cluster Development of the Territory," Journal of Economic & Management Perspectives, vol. 10, no. 3, pp. 159-165, 2016.
C. Ashley et al., The role of the tourism sector in expanding economic opportunity. Cambridge, MA: John F. Kennedy School of Government, Harvard University, 2007.
Copyright (c) 2025 Mirzaaxmedov Durbek

This work is licensed under a Creative Commons Attribution 4.0 International License.
In submitting the manuscript to the Central Asian Journal of Innovations on Tourism Management and Finance, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere,
- The publication has been approved by the author(s) and by responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
License and Copyright Agreement
Authors who publish with Central Asian Journal of Innovations on Tourism Management and Finance agree to the following terms:
- Authors retain copyright and grant the Central Asian Journal of Innovations on Tourism Management and Finance right of first publication with the work simultaneously licensed under Creative Commons Attribution License (CC BY 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the Central Asian Journal of Innovations on Tourism Management and Finance published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.