An Evaluation of the Competitiveness of the Palestinian Olivewood Industry in Bethlehem Governorate
Date
2019-08-26
Authors
Suhair Abdallah Elias Ishaq
سهير عبد الله إلياس اسحق
Journal Title
Journal ISSN
Volume Title
Publisher
Al-Quds University
Abstract
Olivewood carving is one of the most vital Palestinian handicrafts
with the most significant profit margin. Bethlehem, Beit Jala, and Beit
Sahour are the primary three cities famous in the governorate are
specialized in producing and designing olivewood carving products.
The olivewood industry is part of the Palestinian handicraft sector. It
is also part of the tourism sector. Therefore, changes in the tourism
sector translate directly into the handicraft sector. As such, unstable
political situations affect the olivewood industry negatively. In order
to enhance development and sustainability, it is essential that the
olivewood workshops must increase the cooperation between them
and with other stakeholders in the industry.
Based on Porter‘s theory of competitive advantage, the main
determinants of competitive advantage are; factor conditions, demand
conditions, related and supporting industries, firm strategy, structure,
and rivalry, chance and the role of the government.
The main objective of the study is to increase the understanding of the
determinants of the competitiveness of the olivewood industry by
applying Porter‘s diamond model to specify other factors than those
suggested in the diamond model that could influence the
competitiveness of the olivewood industry.
The research followed a descriptive survey approach. An in-depth
interviews and structured questionnaire were utilized to gather data.
The questionnaire targeted 110 owners of olivewood workshops in
Bethlehem governorate. The questions were organized to achieve the
objectives of the research. The results obtained from the survey were
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summarized, and results were analyzed using the descriptive analysis.
Percentages and trends were displayed in tables.
To measure the spread of the data over the sample population, mean
scores and standard deviations were calculated. Correlation
coefficients between indicators of innovation and attributes of the
diamond were calculated to analyze the magnitudes of the relationship
between them.
The study revealed that although olivewood industry has stable factor
conditions, steady local demand under unstable political conditions,
artisan‘s attempts to develop and innovate. However, they are not
sufficient for deriving and sustaining competitive advantage in the
domestic and international markets.
Based on the diamond model, a primary recommendation that could
alleviate weaknesses related to marketing, competition, capacity
building, quality and price control, and other issues is to establish an
effective and powerful institution that can lead and improve the olive
wood industry. Besides, an increase of the cooperation among
stakeholders in the olivewood industry, directing the government
policies, would attract investments, in the olivewood cluster.