Creating shared value to enhance the competitiveness of the agricultural cluster in Qalqilya governorate

Abstract

Purpose The aim of this study is to provide an empirical investigation of the agricultural cluster’s economic, social and environmental values. By doing so, the authors aim to offer policymakers and decision-makers a strategic approach that promotes competitiveness and economic development through shared value. Design/methodology/approach The authors used AMOS software and applied structural equation modeling to achieve the study’s objectives. The study used this approach with path analysis through the Analysis of Moment Structures software. Findings The empirical results indicate that creating shared value (CSV) can enhance the agricultural sector’s competitiveness through clustering. Rather than enhancing competitiveness directly, CSV plays a crucial role in improving the relationship between clustering and competitiveness. The authors also examined Porter’s diamond of competitiveness and evaluated factors for creating a shared value strategy, such as factor conditions, demand conditions, related and supporting industries, strategy, structure, rivalry and the role of government. Research limitations/implications This study focuses solely on the agricultural cluster in Qalqilya governorate and cannot be applied to other regions without additional research. Practical implications Ensuring that stakeholders in the agricultural sector are kept informed about the activities of the cluster and the benefits of their participation is crucial. Empirical findings and conclusions have demonstrated that a shared value strategy can enhance the competitiveness of this sector. To achieve this, institutions involved in developing the agricultural cluster must increase their efficiency and capacity. Consulting experts in this field and drawing on experiences from other countries can aid in achieving this goal. Additionally, enhancing farmers’ productivity should be a priority, and the Ministry of Agriculture can provide training and workshops to improve their skills and expertise. Originality/value This study suggests that Palestinian policymakers should establish effective partnerships between the government and the agricultural sector’s firms in Qalqilya to reinforce the cluster’s competitiveness. This strategy can stimulate competitiveness and promote economic and social development in Palestine.