Competitive advantage of small and medium size enterprises in Palestine

Abstract

The main core of this study is to assess the current state of the Palestinian Small and Medium Size Enterprises (SMEs) sector and determine its potential and opportunities open to this sector for playing a central role in the development process, as well as to examine the reasons behind the limited presence of SMEs' in the Palestinian territory. This thesis explores and examines via qualitative and quantitative research methods, the competitive advantages and distinctive competencies that determine success in firms established in Palestine before and after the Oslo Agreement. The study embraces two case analyses, indepth interviews of successful and less-successful firms and an extensive survey interviewing the owner/manager of established firms in the West Bank and Gaza Strip (WBGS). The empirical analysis is based on survey data from 200 Textile and Garment ventures. Data was examined and analysed using multiple statistical analysis, results were summarised and presented in table and graph forms. In this study, relations between firms' basic resources, competitive positioning tools, and performance are analysed. Comparison is made between the performance of firms based in the West Bank and that of firms in Gaza Strip. Comparative analyses reveal similarities and differences between the two regions. Implications for firm owner-managers and policy makers are discussed. Finally, the study provides suggestions for future research.