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Title: Design of the competitiveness model in leather tanning industry
Authors: Dzikron Muhamad
Primiana Ina
Kaltum Umi
Wibisono Dermawan
Keywords: competitiveness model
manufacturing strategy
operational process
the leather tanning industry
Issue Date: 2020
Publisher: ХНЕУ ім. С. Кузнеця
Citation: Dzikron Muhamad Design of the competitiveness model in leather tanning industry / Muhamad Dzikron, Ina Primiana, Umi Kaltum [etc.] // Управління розвитком. – Т. 18. – № 2. – С. 1-8.
Abstract: 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 construct 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 processes, 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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