Industrial Clusters and Their Role in Enhancing the Competitiveness of Small and Medium Enterprises-Leather and Footwear Sector in Palestine

Abstract

Examining how the cluster affects the performance of the footwear and leather industry organization in Palestine within the framework of a developing nation was the aim of this study, based on contingency and resource-based view theories during the first six months of 2022. The study investigated whether national culture, as well as perceived environmental uncertainty, had a significant impact on cluster among footwear and leather firms. The total population of Palestinian leather and footwear businesses, which consisted of 230 businesses dispersed throughout several cities, served as the example framework. Partial Least Squares Structural Equation Modeling was used to examine the data. The results showed that PEU and national culture had a substantial and advantageous impact on cluster. Additionally, cluster had a big impact on BSC. Furthermore, a significant positive association existed between BSC and organizational competiveness. Finally, the findings showed that the connection between cluster and organizational competitiveness was largely mediated by BSC. To sum up, this study has shed significant light on the cluster of factors that drive organizational competitiveness generally and especially in Palestine. The results have opened new avenues for more theoretical, methodological, and practical study on cluster activities in Palestine and other developing countries, and worldwide.