Design of the competitiveness model in leather tanning industry

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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.

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    • Figure 1. The structural model of competitiveness
    • Conceptualization
      Muhamad Dzikron, Ina Primiana, Dermawan Wibisono
    • Data curation
      Muhamad Dzikron, Umi Kaltum
    • Formal Analysis
      Muhamad Dzikron, Umi Kaltum, Dermawan Wibisono
    • Funding acquisition
      Muhamad Dzikron
    • Investigation
      Muhamad Dzikron
    • Methodology
      Muhamad Dzikron, Ina Primiana, Umi Kaltum
    • Visualization
      Muhamad Dzikron
    • Writing – original draft
      Muhamad Dzikron
    • Writing – review & editing
      Muhamad Dzikron, Ina Primiana
    • Supervision
      Ina Primiana, Umi Kaltum, Dermawan Wibisono
    • Validation
      Umi Kaltum