The effect of clustering on competitiveness improvement in Hebron A structural equation modeling analysis
Date
2017-06-05
Authors
Awad, Ibrahim M.
Amro, Alaa A.
Journal Title
Journal ISSN
Volume Title
Publisher
Emerald Publishing Limited
Abstract
Purpose – The purpose of this paper is to map the cluster in the leather and shoes sector for improving the
competitiveness of the firms. Toward this end, the study is organized to examine the impact of clustering on
competitiveness improvement. The influence of competitive elements and performance (Porter’s diamond)
and balanced score card was utilized.
Design/methodology/approach – A random sample of 131 respondents was chosen during the period
from May 2016 to July 2016. A structural equation modeling (SEM) analysis was applied to investigate the
research model. This approach was chosen because of its ability to test casual relationships between
constructs with multiple measurement items. Researchers proposed a two-stage model-building process for
applying SEM. The measurement model was first examined for instrument validation, followed by an
analysis of the structural model for testing associations hypothesized by the research model.
Findings – The main findings show that there is a unidirectional causal relationship between improvements of
performance and achieve competitiveness and also reveal that the Palestinian shoes and leather cluster sector is
vital and strong, and conclude that clustering can achieve competitiveness for small- and medium-sized enterprises.
Research limitations/implications – Future research can examine the relationship between clustering
and innovation. The effect of clustering using other clustering models other than Porter’s model is advised to
be used for future research.
Practical implications – The relationships among clustering and competitiveness may provide a practical
clue to both, policymakers and researchers on how cluster enhances economic firms such as a skilled
workforce, research, development capacity, and infrastructure. This is likely to create assets such as trust,
synergy, collaboration and cooperation for improved competitiveness.
Originality/value – The findings of this study provide background information that can simultaneously be
used to analyze relationships among factors of innovation, customer’s satisfaction, internal business and
financial performance. This study also identified several essential factors in successful firms, and discussed the
implications of these factors for developing organizational strategies to encourage and foster competitiveness.
Description
Keywords
Competitiveness , Structural equation modelling , Clustering , Developing countries , Palestine , Economics , Data collection , Business policy , Competitive manufacturing , Shoes and leather sector
Citation
To cite this document: Ibrahim M. Awad, Alaa A. Amro, (2017) "The effect of clustering on competitiveness improvement in Hebron: A structural equation modeling analysis", Journal of Manufacturing Technology Management, Vol. 28 Issue: 5, pp.631-654,