Design of the competitiveness model in leather tanning industry
-
Author(s)Muhamad DzikronLink to ORCID Index: https://orcid.org/0000-0002-6169-1533
,
Ina Primiana
,
Umi KaltumLink to ORCID Index: https://orcid.org/0000-0001-9324-6605
,
Dermawan Wibisono
-
DOIhttp://dx.doi.org/10.21511/dm.18(2).2020.01
-
Article InfoVolume 18 2020, Issue #2, pp. 1-8
- Cited by
- 460 Views
-
366 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The Indonesian leather industry has low competitiveness among ASEAN Countries. The government, entrepreneurs, and researchers are trying to find solutions to improve competitiveness. However, there are differences in understanding the dimensions of competitiveness. This research aims to con¬struct and validate the competitiveness model in the manufacturing industry. In general, the concept of competitiveness is more oriented to the final result than to the process dimension. To improve competitiveness, this study using a manufacturing strategy approach based on process capability. The design of the competitiveness model contains the relationship between exogenous and endogenous variables with formative patterns. Exogenous variables are dimensions that makeup competitiveness, consisting of resources, operational processes, and performance. The data were obtained from 42 leather tanning factories in Indonesia, which was analyzed using Partial Least Square. This study reveals that industrial competitiveness is influenced by the dimensions of resources, operational pro¬cesses, and performance, where the dimensions of operational processes have a greater influence. This research confirms that the government and entrepreneurs must prioritize process capabilities to improve their competitiveness.
- Keywords
-
JEL Classification (Paper profile tab)M21, N15
-
References28
-
Tables0
-
Figures1
-
- Figure 1. The structural model of competitiveness
-
- Ambastha, A., & Momaya, K. (2004). Competitiveness of firms: review of theory, framework and models. Singapore management review, 26(1), 45-61.
- Anderson, J., Schroeder, R., & Cleveland, G. (1991). The process of manufacturing strategy: some empirical observations and conclussions. International journal of operations & production management, 11(3), 86-110.
- APKI (2016). Skema dan evaluasi hulu hilir industri penyamakan kulit. Jakarta: Indonesian Tanners Association.
- Badan Pusat Statistik (2018). Statistical yearbook of Indonesia 2018 (762 p.).
- Bayraktar, E., Jothishankar, M., Tatoglu, E., & Wu, T. (2007). Evolution of operations management: past, present and future. Management Research News, 30(11) 843-871.
- Brettel, M., Klein, M., & Friederichsen, N. (2016). The relevance of manufacturing flexibility in the context of industrie 4.0. Procedia CIRP, 41, 105-110.
- Buckley, P., Pass, C., & Prescott, K. (1988). Measures of international competitiveness: a critical survey. Journal of Marketing Management, 4(2), 175-200.
- Bulis, A., & Skapars, R. (2012). Competitiveness of european companies in China: A SWOT analysis. International Journal of Economics and Finance Studies, 4(2), 1-10.
- Camison, C. (2004). Shared, competitive, and comparative advantage: a competence-based view of industrial-district competitiveness. Environment and Planning A: Economy and Space, 36(12), 2227-2256.
- Carayannis, E., & Grigoroudis, E. (2014). Linking innovation, productivity, and competitiveness: implications for policy and practice. Journal of Technolagy Transfer, 39, 199-218.
- Cerrato, D., & Depperu, D. (2011). Unbudling the construct of firm-level competitiveness. Multinational Business Review, 19(4), 311-331.
- Chika’n, A. (2008). National and firm competitiveness: a general research model. Competitiveness Review, 18(1/2), 20-28.
- Cho, D.-S., & Moon, H.-Ch. (2002). From Adam Smith to Michael Porter: evolution to competitiveness theory (2 ed.). Singapore: World Scientific.
- Demeter, K. (2003). Manufacturing strategy and competitiveness. International journal of production economics, 81-82, 205-213.
- Esterhuizen, D., & Van Rooyen, J. (2006). An inquiry into factors impacting on the competitiveness of the South African wine industry. Agrekon, 45(4), 476-485.
- Hair, J., Hult, G., Ringle, C., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). Los Angeles: SAGE.
- Malakauskaite, A., & Navickas, V. (2011). Contribution of clusters to the competitiveness of companies: revelation and evaluation. Engineering Economics, 22(1), 50-57.
- Mills, J., Platts, K., & Gregory, M. (1995). A framework for the design of manufacturing strategy processes: A contingency approach. International Journal of Operations & Production Management, 15(4), 17-49.
- Moon, H., & Peery, J. (1995). Competitiveness of product, firm, industry, and nation in a global business. Competitiveness Review, 5(1), 37- 43.
- Oral, M., Cinar, U., & Chabchoub, H. (1999). Linking industrial competitiveness and productivity at the firm level. European Journal of Operational Research, 118(2), 271-277.
- Porter, M. (1990). The competitive advantage of nations. Harvard Business Review, 73-91.
- Porter, M. (1998). The Adam Smith addres: location, clusters, and the «New» microeconomics of competition. Business Economics, 33(1), 7-13.
- Sawhney, R. (2006). Interplay between uncertainty and flexibility across the value-chain: towards a transformation model of manufacturing flexibility. Journal of operations management, 24(5), 476-493.
- Sirikrai, S., & Tang, J. (2006). Industrial competitiveness analysis: Using the analytic hierarchy process. Journal of high technology management research, 17(1), 71-83.
- Siudek, T., & Zawojska, A. (2014). Competitiveness in the economic concepts, theories and empirical research. Oeconomia, 13(1), 91-108.
- Skinner, W. (1969). Manufacturing: missing link in corporate strategy. Harvard Business Review, 47, 136-145.
- Trade, M. (2018). Indonesia’s leather industry: one of the national outstanding sector. Jakarta: Ministry of trade of Indonesia.
- Willoughby, K. (2000). Building internationally competitive technology regions: the industrial-location-factors approach and the local-technological-milieux approach. Journal of international and area studies, 7(2), 1-36.
