ANALYSIS OF COMPETITIVENESS OF TURKISH TEXTILE SECTOR BASED ON THE PORTER’S DIAMOND MODEL

Abstract

Textiles industries are among the most strategic sectors of the Turkish economy and foreign trade. Through the last three decades, the textile industry in Turkey has evolved rapidly, shifting from a low-value-added to a high-value-added industry that keeps pace with rapid changes in material, manufacturing methods and fashion (Kutluksaman et al, 2012). This paper, analysis of Competitiveness of the Turkish textile sector based on the Porter diamond. The Textile companies can use the Porter diamond model to establish how they can translate national advantages in this sector into international advantages. The Porter diamond model suggests that the national home base of an organization plays an important role in the creation of advantages on a global scale (Porter, 1990). The research methodology is the descriptive-analytical approach. Paper sources are based on scientific studies and reports related to competitiveness (textile sector reports), as well as the use of the Global Competitiveness Report data in Turkey.The paper analyzed the textile sector and the factors affecting it using Porter's Diamond and showed there are strong points such as labor force availability, average labor costs, raw materials, and geographical location, and weak indicators related to research and innovation. Research showed that Turkey has a large local market and attractive to competitors. It is a strong point to strengthen its future competitiveness and needs more effort to meet its needs. This sector ranks ninth in the world in the volume of textile imports. The competitiveness report showed the weakness of some indicators in Turkey which affect the Turkish economy in general, including the textile sector, such as indicators related to the legal framework and the independence of the judiciary, while ranking among best countries in the index of investor protection and the intensity of local competition.