Share:


Analysis of variables affecting competitiveness of SMEs in the textile industry

    Caner Taçoğlu   Affiliation
    ; Cemil Ceylan   Affiliation
    ; Yiğit Kazançoğlu   Affiliation

Abstract

This paper aims to develop strategy and policy suggestions to increase the competitiveness of SMEs in the textile industry by analyzing the variables that affect competitiveness and contribute to competitiveness literature by adopting a holistic approach to the analysis of competitiveness variables. A hybrid model composed of Delphi and fuzzy DEMATEL (Decision-Making Trial and Evaluation Laboratory) methods were used to gather and analyze the competitiveness variables. This led to the identification of the 15 most important of 73 competitiveness variables relevant to SME competitiveness in the textile industry. These variables were analysed and ranked, and their causal relationships were mapped. The results obtained from the model may function as a reference for SME managers aiming to increase their firm’s competitive power.

Keyword : SME, competitiveness, management, Delphi, fuzzy DEMATEL, textile industry, production sector

How to Cite
Taçoğlu, C., Ceylan, C., & Kazançoğlu, Y. (2019). Analysis of variables affecting competitiveness of SMEs in the textile industry. Journal of Business Economics and Management, 20(4), 648-673. https://doi.org/10.3846/jbem.2019.9853
Published in Issue
May 16, 2019
Abstract Views
3747
PDF Downloads
2318
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Acquaah, M., & Yasai-Ardekani, M. (2008). Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa. Journal of Business Research, 61(4), 346-354. https://doi.org/10.1016/j.jbusres.2007.06.021

Aragón-Correa, J. A., García-Morales, V. J., & Cordón-Pozo, E. (2007). Leadership and organizational learning’s role on innovation and performance: Lessons from Spain. Industrial Marketing Management, 36(3), 349-359. https://doi.org/10.1016/j.indmarman.2005.09.006

Avella, L., Fernandez, E., & Vazquez, C. J. (1998). Taxonomy of the manufacturing strategies of large Spanish industrial companies. International Journal of Production Research, 36(11), 3113-3134. https://doi.org/10.1080/002075498192328

Bayraktar, C. A., Hancerliogullari, G., Cetinguc, B., & Calisir, F. (2017). Competitive strategies, innovation, and firm performance: an empirical study in a developing economy environment. Technology Analysis & Strategic Management, 29(1), 38-52. https://doi.org/10.1080/09537325.2016.1194973

Bhatt, G. D., & Grover, V. (2005). Types of information technology capabilities and their role in competitive advantage: an empirical study. Journal of Management Information Systems, 22(2), 253-277. https://doi.org/10.1080/07421222.2005.11045844

Bontis, N., Crossan, M. M., & Hulland, J. (2002). Managing an organizational learning system by aligning stocks and flows. Journal of Management Studies, 39(4), 437-469. https://doi.org/10.1111/1467-6486.t01-1-00299

Cagliano, R., Acur, N., & Boer, H. (2005). Patterns of change in manufacturing strategy configurations. International Journal of Operations & Production Management, 25(7), 701-718. https://doi.org/10.1108/01443570510605108

Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31(6), 515-524. https://doi.org/10.1016/S0019-8501(01)00203-6

Carneiro, A. (2000). How does knowledge management influence innovation and competitiveness? Journal of Knowledge Management, 4(2), 87-98. https://doi.org/10.1108/13673270010372242

Cetindamar, D., & Kilitcioglu, H. (2013). Measuring the competitiveness of a firm for an award system. Competitiveness Review: An International Business Journal, 23(1), 7-22. https://doi.org/10.1108/10595421311296597

Chao, C. A., & Chandra, A. (2012). Impact of owner’s knowledge of information technology (IT) on strategic alignment and IT adoption in US small firms. Journal of Small Business and Enterprise Development, 19(1), 114-131. https://doi.org/10.1108/14626001211196433

Chari, S., Balabanis, G., Robson, M. J., & Slater, S. (2017). Alignments and misalignments of realized marketing strategies with administrative systems: Performance implications. Industrial Marketing Management, 63, 129-144. https://doi.org/10.1016/j.indmarman.2016.11.002

Chen, S. J., & Hwang, C. L. (1992). Fuzzy ranking methods. In Fuzzy multiple attribute decision making (pp. 101-288). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-46768-4_4

Cohen, J. F., & Olsen, K. (2013). The impacts of complementary information technology resources on the service-profit chain and competitive performance of South African hospitality firms. International Journal of Hospitality Management, 34, 245-254. https://doi.org/10.1016/j.ijhm.2013.04.005

Dalkey, N., & Helmer, O. (1963). An experimental application of the Delphi method to the use of experts. Management Science, 9(3), 458-467. https://doi.org/10.1287/mnsc.9.3.458

Fang, S. C., Wang, M. C., & Chen, P. C. (2017). The influence of knowledge networks on a firm’s innovative performance. Journal of Management & Organization, 23(1), 22-45. https://doi.org/10.1017/jmo.2016.32

Frohlich, M. T., & Dixon, J. R. (2001). A taxonomy of manufacturing strategies revisited. Journal of Operations Management, 19(5), 541-558. https://doi.org/10.1016/S0272-6963(01)00063-8

Gabus, A., & Fontela, E. (1972). World problems, an invitation to further thought within the framework of DEMATEL. Battelle Geneva Research Center, Geneva, Switzerland.

Gál, A. N. (2010). Competitiveness of small and medium sized enterprises-a possible analytical framework. Hungarian Electronic Journal of Science, HEJ: ECO-100115-A.

García-Morales, V. J., Jiménez-Barrionuevo, M. M., & Gutiérrez-Gutiérrez, L. (2012). Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of Business Research, 65(7), 1040-1050. https://doi.org/10.1016/j.jbusres.2011.03.005

Global Competitiveness Index. (2017). The Global Competitiveness Report (2017–2018). World Economic Forum, Geneva, Switzerland.

Gonzalez, M. E., Quesada, G., Mueller, R., & Mora-Monge, C. A. (2004). QFD strategy house: an innovative tool for linking marketing and manufacturing strategies. Marketing Intelligence & Planning, 22(3), 335-348. https://doi.org/10.1108/02634500410536911

Guzmán, G. M., Gutiérrez, J. S., Cortes, J. G., & Ramírez, R. G. (2012). Measuring the competitiveness level in furniture SMEs of Spain. International Journal of Economics and Management Sciences, 1(11), 09-19.

Intracen SME Competitiveness Grid. (2016). SME Competitiveness Outlook 2016. International Trade Centre, Geneva, Switzerland.

Jiménez-Jiménez, D., & Sanz-Valle, R. (2011). Innovation, organizational learning, and performance. Journal of Business Research, 64(4), 408-417. https://doi.org/10.1016/j.jbusres.2010.09.010

Joshi, D., Nepal, B., Rathore, A. P. S., & Sharma, D. (2013). On supply chain competitiveness of Indian automotive component manufacturing industry. International Journal of Production Economics, 143(1), 151-161. https://doi.org/10.1016/j.ijpe.2012.12.023

Kalkan, A., Erdil, O., & Çetinkaya, Ö. (2011). The relationships between firm size, prospector strategy, architecture of information technology and firm performance. Procedia-Social and Behavioral Sciences, 24, 854-869. https://doi.org/10.1016/j.sbspro.2011.09.114

Kast, F. E., & Rosenzweig, J. E. (1972). General systems theory: Applications for organization and management. Academy of Management Journal, 15(4), 447-465. https://doi.org/10.2307/255141

Kathuria, R. (2000). Competitive priorities and managerial performance: a taxonomy of small manufacturers. Journal of Operations Management, 18(6), 627-641. https://doi.org/10.1016/S0272-6963(00)00042-5

Kim, E., Nam, D. I., & Stimpert, J. L. (2004). Testing the applicability of Porter’s generic strategies in the digital age: A study of Korean cyber malls. Journal of Business Strategies, 21(1), 19.

Khompatraporn, C., & Somboonwiwat, T. (2017). Causal factor relations of supply chain competitiveness via fuzzy DEMATEL method for Thai automotive industry. Production Planning & Control, 28(6-8), 538-551. https://doi.org/10.1080/09537287.2017.1309713

Lai, F., Zhao, X., & Wang, Q. (2006). The impact of information technology on the competitive advantage of logistics firms in China. Industrial Management & Data Systems, 106(9), 1249-1271. https://doi.org/10.1108/02635570610712564

Landeta, J. (2006). Current validity of the Delphi method in social sciences. Technological Forecasting and Social Change, 73(5), 467-482. https://doi.org/10.1016/j.techfore.2005.09.002

Leonidou, L. C., Leonidou, C. N., Fotiadis, T. A., & Zeriti, A. (2013). Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance. Tourism Management, 35, 94-110. https://doi.org/10.1016/j.tourman.2012.06.003

Leonidou, L. C., Katsikeas, C. S., & Samiee, S. (2002). Marketing strategy determinants of export performance: a meta-analysis. Journal of Business Research, 55(1), 51-67. https://doi.org/10.1016/S0148-2963(00)00133-8

Lin, C. J., & Wu, W. W. (2008). A causal analytical method for group decision-making under fuzzy environment. Expert Systems with Applications, 34(1), 205-213. https://doi.org/10.1016/j.eswa.2006.08.012

Linstone, H. A., & Turoff, M. (Eds.). (1975). The Delphi method: techniques and applications (Vol. 29). Reading, MA: Addison-Wesley.

Linton, G., & Kask, J. (2017). Configurations of entrepreneurial orientation and competitive strategy for high performance. Journal of Business Research, 70, 168-176. https://doi.org/10.1016/j.jbusres.2016.08.022

Lorsuwanrat, T. (2010). Management tools. Bangkok: Z Probe Printing.

Mandal, P., & Bagchi, K. (2016). Strategic role of information, knowledge and technology in manufacturing industry performance. Industrial Management & Data Systems, 116(6), 1259-1278. https://doi.org/10.1108/IMDS-07-2015-0297

Mao, H., Liu, S., Zhang, J., & Deng, Z. (2016). Information technology resource, knowledge management capability, and competitive advantage: the moderating role of resource commitment. International Journal of Information Management, 36(6), 1062-1074. https://doi.org/10.1016/j.ijinfomgt.2016.07.001

Martin, S. L., Javalgi, R. G., & Cavusgil, E. (2017). Marketing capabilities, positional advantage, and performance of born global firms: Contingent effect of ambidextrous innovation. International Business Review, 26(3), 527-543. https://doi.org/10.1016/j.ibusrev.2016.11.006

Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly, 28(2), 283-322. https://doi.org/10.2307/25148636

Miller, J. G., & Roth, A. V. (1994). A taxonomy of manufacturing strategies. Management Science, 40(3), 285-304. https://doi.org/10.1287/mnsc.40.3.285

Minniti, M., & Bygrave, W. (1999). The microfoundations of entrepreneurship. Entrepreneurship: Theory and Practice, 23(4), 41-41. https://doi.org/10.1177/104225879902300403

Ollo-López, A., & Aramendía-Muneta, M. E. (2012). ICT impact on competitiveness, innovation and environment. Telematics and Informatics, 29(2), 204-210. https://doi.org/10.1016/j.tele.2011.08.002

Opricovic, S., & Tzeng, G. H. (2003). Defuzzification within a multicriteria decision model. International Journal of Uncertainty, Fuzziness and Knowledge-Based Systems, 11(05), 635-652. https://doi.org/10.1142/S0218488503002387

Perez, J. R. & Pablos, P. O. (2003). Knowledge managemant and organizational competitveness: a framework for human capital analysis. Journal of Knowledge Management, 7(3), 82-91. https://doi.org/10.1108/13673270310485640

Pérez López, S., Manuel Montes Peón, J., & José Vazquez Ordás, C. (2005). Organizational learning as a determining factor in business performance. The Learning Organization, 12(3), 227-245. https://doi.org/10.1108/09696470510592494

Pertusa‐Ortega, E. M., Molina‐Azorín, J. F., & Claver‐Cortés, E. (2009). Competitive strategies and firm performance: A comparative analysis of pure, hybrid and “stuck‐in‐the‐middle” strategies in Spanish firms. British Journal of Management, 20(4), 508-523. https://doi.org/10.1111/j.1467-8551.2008.00597.x

Powell, T. C., & Dent-Micallef, A. (1997). Information technology as competitive advantage: The role of human, business, and technology resources. Strategic Management Journal, 375-405. https://doi.org/10.1002/(SICI)1097-0266(199705)18:5<375::AID-SMJ876>3.0.CO;2-7

Powers, T. L., & Hahn, W. (2004). Critical competitive methods, generic strategies, and firm performance. International Journal of Bank Marketing, 22(1), 43-64. https://doi.org/10.1108/02652320410514924

Radziszewski, P., Nazarko, J., Vilutiene, T., Dębkowska, K., Ejdys, J., Gudanowska, A., Halicka, K., Kilon, J., Kononiuk, A., Kowalski, K. J., Król, J. B., Nazarko, L., & Sarnowski, M. (2016). Future trends in road technologies development in the context of environmental protection. The Baltic Journal of Road and Bridge Engineering, 11(2), 160-168. https://doi.org/10.3846/bjrbe.2016.19

Resurreccion, P. F. (2012). Performance management and compensation as drivers of organization com-petitiveness: The Philippine perspective. International Journal of Business and Social Science, 3(21).

Rhee, M., & Mehra, S. (2006). Aligning operations, marketing, and competitive strategies to enhance performance: An empirical test in the retail banking industry. Omega, 34(5), 505-515. https://doi.org/10.1016/j.omega.2005.01.017

Rose, R. C., Kumar, N., & Ibrahim, H. I. (2008). The effect of manufacturing strategy on organizational performance. Performance Improvement, 47(1), 18-25. https://doi.org/10.1002/pfi.175

Rundh, B. (2003). Rethinking the international marketing strategy: new dimensions in a competitive market. Marketing Intelligence & Planning, 21(4), 249-257. https://doi.org/10.1108/02634500310480130

Salavou, H., Baltas, G., & Lioukas, S. (2004). Organisational innovation in SMEs: the importance of strategic orientation and competitive structure. European Journal of Marketing, 38(9/10), 1091-1112. https://doi.org/10.1108/03090560410548889

Santos-Vijande, M. L., López-Sánchez, J. Á., & Trespalacios, J. A. (2012). How organizational learning affects a firm’s flexibility, competitive strategy, and performance. Journal of Business Research, 65(8), 1079-1089. https://doi.org/10.1016/j.jbusres.2011.09.002

Schmidt, R., Lyytinen, K., Keil, M., & Cule, P. (2001). Identifying software project risks: An international Delphi study. Journal of Management Information Systems, 17(4), 5-36. https://doi.org/10.1080/07421222.2001.11045662

Singh, R. K., Garg, S. K., & Deshmukh, S. G. (2008). Strategy development by SMEs for competitiveness: a review. Benchmarking: An International Journal, 15(5), 525-547. https://doi.org/10.1108/14635770810903132

Sirikrai, S. B., & Tang, J. C. (2006). Industrial competitiveness analysis: Using the analytic hierarchy process. The Journal of High Technology Management Research, 17(1), 71-83. https://doi.org/10.1016/j.hitech.2006.05.005

Siu, W. S., Fang, W., & Lin, T. (2004). Strategic marketing practices and the performance of Chinese small and medium-sized enterprises (SMEs) in Taiwan. Entrepreneurship & Regional Development, 16(2), 161-178. https://doi.org/10.1080/08985620410001677862

Song, Z. H. (2015). Organizational learning, absorptive capacity, imitation and innovation: Empirical analyses of 115 firms across China. Chinese Management Studies, 9(1), 97-113. https://doi.org/10.1108/CMS-05-2014-0092

Street, C. T., & Cameron, A. F. (2007). External relationships and the small business: A review of small business alliance and network research. Journal of Small Business Management, 45(2), 239-266. https://doi.org/10.1111/j.1540-627X.2007.00211.x

Sweeney, M.T., & Szwejczewski, M. (1996). The search for generic manufacturing strategies in the UK engineering industry. Manufacturing Strategy: Operations Strategy in a Global Context (pp. 659-664). London Business School, London.

Szerb, L., & Ulbert, J. (2009). The examination of the competitiveness in the Hungarian SME sector: A firm level analysis. Acta Polytechnica Hungarica, 6(3), 105-123.

Tian, Y., Jia, Y., & Malik, S. A. (2010). Taxonomy of manufacturing strategies: A worldwide perspective. International Conference on Management and Service Science (pp. 1-4). Wuhan. https://doi.org/10.1109/ICMSS.2010.5578443

Wang, R. C., & Chuu, S. J. (2004). Group decision-making using a fuzzy linguistic approach for evaluating the flexibility in a manufacturing system. European Journal of Operational Research, 154(3), 563-572. https://doi.org/10.1016/S0377-2217(02)00729-4

Wanto, H. S., & Suryasaputra, R. (2012). The effect of organizational culture and organizational learning towards the competitive strategy and company performance (case study of East Java SMEs in Indonesia: Food and beverage industry). Information Management and Business Review, 4(9), 467.

Wattanapruttipaisan, T. (2002). SME subcontracting as a bridgehead to competitiveness: An assessment of supply-side capabilities and demand-side requirements. Asia-Pacific Development Journal, 9(1), 65-87.

Wu, C. S., Lin, C. T., & Lee, C. (2010). Competitive marketing strategies decision-making based on marketing resources and capabilities: evidence from the hospitality industry in Taiwan. Journal of Quality Assurance in Hospitality & Tourism, 11(4), 219-238. https://doi.org/10.1080/1528008X.2010.504163

Wu, W. W., & Lee, Y. T. (2007). Developing global managers’ competencies using the fuzzy DEMATEL method. Expert Systems with Applications, 32(2), 499-507. https://doi.org/10.1016/j.eswa.2005.12.005

Yager, R. R., & Filev, D. P. (1994). Essentials of fuzzy modeling and control. New York.

Yamin, S., Mavondo, F., Gunasekaran, A., & Sarros, J. C. (1997). A study of competitive strategy, organisational innovation and organisational performance among Australian manufacturing companies. International Journal of Production Economics, 52(1-2), 161-172. https://doi.org/10.1016/S0925-5273(96)00104-1

Yeo, R. K. (2007). Identifying the competitive sword: Learning to be cutting-edge for organizational development. Business Strategy Series, 9(1), 30-36. https://doi.org/10.1108/17515630810850091

Zadeh, L. A. (1965). Fuzzy logic and its applications. New York, NY, USA.

Zadeh, L. A. (1975). The concept of a linguistic variable and its application to approximate reasoning – I. Information Sciences, 8(3), 199-249. https://doi.org/10.1016/0020-0255(75)90036-5

Ziegler, A., & Nogareda, J. S. (2009). Environmental management systems and technological environmental innovations: Exploring the causal relationship. Research Policy, 38(5), 885-893. https://doi.org/10.1016/j.respol.2009.01.020

Zhao, X., Sum, C. C., Qi, Y., Zhang, H., & Lee, T. S. (2006). A taxonomy of manufacturing strategies in China. Journal of Operations Management, 24(5), 621-636. https://doi.org/10.1016/j.jom.2005.07.003

Zhou, D., Kautonen, M., Wang, H., & Wang, L. (2017). How to interact with knowledge-intensive business services: A multiple case study of small and medium manufacturing enterprises in China. Journal of Management & Organization, 23(2), 297-318. https://doi.org/10.1017/jmo.2016.23

Zhou, Q., Huang, W., & Zhang, Y. (2011). Identifying critical success factors in emergency management using a fuzzy DEMATEL method. Safety Science, 49(2), 243-252. https://doi.org/10.1016/j.ssci.2010.08.005