Abstract This paper reports the results of a study that examined the influence of competitive factors (product innovation, staff and planning issues, quality product, customer orientation and financial attractiveness) on firm performance among 543 Spanish manufacturing firms. The results showed that (1) managers' rankings of the importance of competitive factors were positively associated with firm productivity; and (2) importance of (a) financial attractiveness and (b) staff and planning issues were positively associated with ROA. Understanding factors that impact performance can provide firms with more insight into issues affecting investment decisions. Better investment decisions can enable the firm to become more competitive and lead to greater productivity and employment. Becoming more competitive is especially important as countries continue economic integration and expand world trade.