The role of primary value chain in enhancing the competitive advantage of shopping malls in Ramallah and Al-Bireh Governorate

Abstract

This study aimed to analyze the role of the primary value chain in enhancing the competitive advantage of major shopping malls in Ramallah and Al-Bireh Governorate, in light of the increasing challenges facing the Palestinian retail sector, including intense competition, cost pressures, and changing consumer preferences. The study was guided by a central research question regarding the extent to which shopping malls employ the components of the primary value chain and whether such employment influences the achievement of various dimensions of competitive advantage, namely cost, quality, flexibility, differentiation, and customer experience. To achieve its objectives, the researcher adopted a descriptive-analytical methodology and utilized a structured questionnaire to collect data from a representative sample of employees working in senior management and retail units within three major shopping malls. In-depth interviews were also conducted with several executive managers to support and interpret the quantitative results in light of practical realities. The study focused on five core activities of the primary value chain—namely inbound logistics, operations, outbound logistics, marketing and sales, and supporting services—as key inputs for building competitive advantage, which was measured across five dimensions: cost, quality, flexibility, differentiation, and customer experience. The findings revealed a statistically significant relationship between the effective utilization of the value chain and the level of competitive advantage across its dimensions. Additionally, the study identified statistically significant differences in the activation of value chain components based on shopping mall characteristics, particularly location, size, and the number of stores, underscoring the importance of institutional context in shaping value strategies. The post-survey interviews further affirmed that integration among value chain activities, rather than treating them as isolated components, constitutes a cornerstone for building sustainable competitive advantage. In light of these findings, the study recommends that shopping malls in Palestine adopt an integrated model for analyzing the primary value chain, emphasizing service innovation, technology investment, and customer experience enhancement as strategic tools to ensure excellence and adaptability within both local and regional market dynamics.