Competitiveness of the Palestinian stone and marble sector through clustering

Abstract

Palestine is known as “The Holy Land”. It‟s numerous features are unique and have made it a significant destination for tourists from all over the world. Palestine also has lots of natural resources especially natural stone. Working in a cluster is an efficient and effective way to enhance the competitiveness of natural stone firms. Firms in the cluster area have greater ability to access larger local markets, and they are encouraged to be more innovative because there is rivalry amongst firms in the cluster. Although firms working in the stone and marble sector in Palestine are exporting to many countries worldwide, they still tend to underperform. A combination of quantitative and qualitative methods- mixed methodology- was used in this research. The researcher randomly selected and distributed 100 questionnaires (to the companies working in the stone and marble sector. The questionnaire was addressed to the owner/manager of the firms that were selected. The results of the research show that the Palestinian stone cluster sector is weak and the performance of stone firms working within the cluster is very low. Additionally, the results show a positive and strong relationship between working in a cluster and enhanced competitiveness achieved through this technique. Working in a cluster has been shown to promote productivity, innovation and competition in a number of ways, e.g., the reduced cost of sharing resources, the critical mass created by having a pool of specialized skills, expertise and value-added products. The cluster also enhances economic foundations such as a skilled workforce, research and development capacity and infrastructure; and thus creates assets such as trust, synergy, collaboration and cooperation, which are all essential for competitiveness and business sustainability.