A Sustainable Development Strategy for the Uzbekistan Textile Industry: The Results of a SWOT-AHP Analysis
Round 1
Reviewer 1 Report
This paper aims to better understand the Uzbekistan textile industry using a SWOT (Strengths, Weaknesses, Opportunities and Threats)-AHP (Analytic Hierarchy Process) model. The literature is generally comprehensive in justifying reasons why the authors used a SWOT-AHP analysis, but it would have been better if a deeper evaluation of the strengths and limitations of past research in the Uzbekistan textile industry could have been more explicitly articulated. There are some missing citations and I am unsure of where the information came from. (E.g. page 2, line 44-46 and line 75-76).
The methodology appears sound and the paper lays out the various stages of the research process using SWOT AHP model. This could lead to potential methodological contributions in the business research area. However, the sampling techniques and data collection processes could be better articulated to show how the 75 textile companies were selected and what types of textile companies agreed to take part in the survey. Page 6, line 236 indicates "meeting the experts directly and collecting survey data” - The interviewing procedure and questionnaire design could be indicated more evidently. Authors stated that respondents are all “experts from Uzbekistan textile companies” but this is not sufficient information to identify their specific roles in the textile companies (e.g. A CEO of the business? or Supply Chain managers? Cotton producers? Yarn producers? Weavers? etc.)
Authors categorized three company types as Foreign Company, Joint Venture and Local Company, but it will be beneficial for readers to understand more detailed information about the categories of textile companies. The findings of the results are slightly generic. The findings could be further examined to show how three groups of textile companies face different situations and discuss what major factors influence each group and discuss how different geographical regions of each company has different strengths, weaknesses, opportunities and threats.
The findings of results and conclusions can be critically written, supporting existing study by connecting it with previously published literature. This can help the authors’ present points of similarity and differences in the results in context of prior research to outline the contributions and originality of the study.
Author Response
[Comment 1]
This paper aims to better understand the Uzbekistan textile industry using a SWOT (Strengths, Weaknesses, Opportunities and Threats)-AHP (Analytic Hierarchy Process) model. The literature is generally comprehensive in justifying reasons why the authors used a SWOT-AHP analysis, but it would have been better if a deeper evaluation of the strengths and limitations of past research in the Uzbekistan textile industry could have been more explicitly articulated. There are some missing citations and I am unsure of where the information came from. (E.g. page 2, line 44-46 and line 75-76). [Response]
As for this comment, we agree that a deeper evaluation of the previous relevant research in the Uzbekistan textile industry could be more explicitly articulated. So, we reviewed the relevant literatures again to the best of our ability, but only a few SWOT analysis was conducted for the textile industry in Uzbekistan, and this research attempted to include all published data as much as possible. As mentioned in the paper, this paper took a look at the SWOT-analysis-based research that had been carried out in broadly examining the textile industry in Uzbekistan, and then established a SWOT matrix. Considering the reviewer’s comments, we revised the “Introduction” section by emphasizing the main advantage and difference from the relevant research. The specific revisions are as follows.
In the 4th and 5th paragraphs of Section 1, we emphasized the advantage and difference from the relevant research, as follows:
“As pointed out in Kurttila et al. [7], SWOT analysis provides no means of analytically determining the importance of factors or of assessing the fit between factors and decision alternatives, and it is regarded as a limitation of SWOT analysis application. In other words, the conventional studies on general textile industry trends and investment strategies for Uzbekistan using SWOT analysis are primary approaches for establishing strategies based on the strategic factors and do not provide the qualitative examinations such as priority and importance among strategy factors.”
“The main advantage of the proposed approach and the difference from the other relevant research lies in the quantitative examination of the SWOT factors by applying AHP in SWOT analysis and the inclusion of the preferences of the decision-maker in planning and implementing the development strategies.”
In the 1st and 3th paragraphs of Section 1, we noted the citations, as follows:
“In addition, Uzbekistan is the 6th largest cotton producer and the 5th largest cotton exporter in the world, showing a well-developed structure concentrated on cotton, which gives it its high percentage of the international cotton market [21].”
“Specifically, as of 2016, the textile industry produces 550,000 tons of cotton, about 480 million s/m of fabric, about 100,000 tons of stockinet, 411 million garments, and 85 million pairs of hosiery [21].”
In the References, we added the reference information, as follows:
Kotra news. Available online: http://news.kotra.or.kr/user/globalBbs/kotranews/784/globalBbsDataView.do?setIdx=403&dataIdx=1773365 (02 May 2019)
[Comment 2]
The methodology appears sound and the paper lays out the various stages of the research process using SWOT AHP model. This could lead to potential methodological contributions in the business research area. However, the sampling techniques and data collection processes could be better articulated to show how the 75 textile companies were selected and what types of textile companies agreed to take part in the survey. Page 6, line 236 indicates "meeting the experts directly and collecting survey data” - The interviewing procedure and questionnaire design could be indicated more evidently. Authors stated that respondents are all “experts from Uzbekistan textile companies” but this is not sufficient information to identify their specific roles in the textile companies (e.g. A CEO of the business? or Supply Chain managers? Cotton producers? Yarn producers? Weavers? etc.)
[Response]
Considering the reviewer’s comments, we revised the manuscript to articulate the survey method, respondent target selection and procedures. The specific revisions are as follows:
In the 1st paragraph of Section 4.2, we clarified the survey method, respondent target selection and procedures by including the consistency test results and types of survey respondent companies, as follows:
“Most of the survey respondents had more than 20 years’ experience in the textile industry. Seventy-five (75) out of the 100 questionnaires were collected, and 73 with a consistency ratio of 0.1 or less were used for the survey analysis to maintain logical consistency. The consistency test results and types of survey respondent companies are summarized in Table C.1 and C.2 of Appendix C.”
[Comment 3]
Authors categorized three company types as Foreign Company, Joint Venture and Local Company, but it will be beneficial for readers to understand more detailed information about the categories of textile companies. The findings of the results are slightly generic. The findings could be further examined to show how three groups of textile companies face different situations and discuss what major factors influence each group and discuss how different geographical regions of each company has different strengths, weaknesses, opportunities and threats.
[Response]
We also agree with the necessity for an in-depth study of what the reviewer comments. However, the initial purpose of this study is to present a priority and importance-based sustainable strategy for the economic development of the Uzbekistan textile industry. In this regard, this study does not take into account the type and regional characteristics of the firms. Nevertheless, the reviewer’s comment will be a very important and necessary study for the concrete formulation of Uzbekistan’s textile industry development strategy. To achieve the reviewer’s comment, it will be necessary to newly conduct environmental analysis that meets the characteristics of each company type and establish strategic priorities based on the composition of the SWOT matrix. Therefore, in consideration of the reviewer’s comment, it is advisable to conduct further research that provides specific development strategies in consideration of Uzbekistan company types and regional characteristics based on the results of this study. It is emphasizing that this study focuses on complementing the previous SWOT analysis-based research that failed to prioritize strategic elements. But, the reviewer’s comment will be carried out in future studies, and we hope the reviewer’s generous understanding. We revised the conclusion by adding the main difference of these results from the relevant research and the future research plan, as follows.
In the 1st paragraphs of Section 5, we mentioned the main difference of the findings of this research, as follows:
“The main difference of the findings of this research from the other relevant research was in that it conducted the quantitative examination of the SWOT and provided the preferences of the decision-maker in planning and implementing the development strategies for Uzbekistan. Specifically, we took a look at the SWOT-analysis-based research that had been carried out in broadly examining the textile industry in Uzbekistan. Then, a SWOT matrix for an Uzbekistan textile industry development strategy was established by integrating, classifying and adjusting the SWOT analysis results derived from the previous studies. AHP analysis was utilized to quantify the importances and priorities of the components of the SWOT analysis. On that basis, this research provided concrete, effective and sustainable strategy directions reflective of rational selection and prioritization within a context of limited resources. This research might be meaningful in suggesting the basis of the establishment of a viable strategy for the development of the textile industry in Uzbekistan.”
In the 1st paragraphs of Section 5, we mentioned the limitation and future research plan, as follows:
“The limitations of this study were its examination of various components of SWOT attributes through a literature review. Also, the AHP analysis limits the number of components per attribute to four, taking into account the fact that the greater the number of components to be evaluated, the more difficult it is to maintain logical consistency of responses. Future research will be more meaningful in analyzing the importances and priorities of the AHP and in further studying, with a structured model, the causal relationships among the key factors impacting on the development of Uzbekistan’s textile industry. And Future research will be conducted to show how three groups (Foreign Company, Joint Venture, Local Company) of textile companies face different situations and discuss what major factors influence each group and how different geographical regions of each company has different strengths, weakness, opportunities and threats.”
[Comment 4]
The findings of results and conclusions can be critically written, supporting the existing study by connecting it with previously published literature. This can help the authors’ present points of similarity and differences in the results in the context of prior research to outline the contributions and originality of the study.
[Response]
Same as the response from Comment 3, we revised the conclusion by adding the advantage and main difference of this results from the relevant research, as follows.
In the 1st paragraphs of Section 5, we mentioned the main difference of the findings of this research, as follows:
“The main difference of the findings of this research from the other relevant research was in that it conducted the quantitative examination of the SWOT and provided the preferences of the decision-maker in planning and implementing the development strategies for Uzbekistan. Specifically, we took a look at the SWOT-analysis-based research that had been carried out in broadly examining the textile industry in Uzbekistan. Then, a SWOT matrix for an Uzbekistan textile industry development strategy was established by integrating, classifying and adjusting the SWOT analysis results derived from the previous studies. AHP analysis was utilized to quantify the importances and priorities of the components of the SWOT analysis. On that basis, this research provided concrete, effective and sustainable strategy directions reflective of rational selection and prioritization within a context of limited resources. This research might be meaningful in suggesting the basis of the establishment of a viable strategy for the development of the textile industry in Uzbekistan.”
Finally, we greatly appreciate the efficient, professional and rapid processing of our paper. If there is anything else we should do, please do not hesitate to let us know.
Yours sincerely,
The authors
Corresponding author:
Name: Jaehun Park, Ph. D.
Email: [email protected], Tel.:+82-53-819-7723
Reviewer 2 Report
The textile industry is changing. As the USA uses ever increasing technology, it will put pressure on developing countries.
Author Response
[Comment 1]
The textile industry is changing. As the USA uses ever increasing technology, it will put pressure on developing countries.
[Response]
We really appreciate the positive and constructive comments and suggestions on our manuscript. We have studied reviewers’ comments carefully and strove to incorporate each comment into our manuscript as explained in the following page
Finally, we greatly appreciate the efficient, professional and rapid processing of our paper. If there is anything else we should do, please do not hesitate to let us know.
Yours sincerely,
The authors
Corresponding author:
Name: Jaehun Park, Ph. D.
Email: [email protected], Tel.:+82-53-819-7723
Reviewer 3 Report
This is an interesting study. Overall, this paper is clearly written. There are some issues that require the authors to address through responses or revision.
The analytic hierarchy process (AHP) needs to be clearly explained when it was firstly mentioned in the paper. The more detailed discussion on AHP may be included in literature review.
Literature review needs to be reorganized in the way clearly explain the Uzbekistan textile industry development, SWOT analysis, the SWOT-AHP analysis. Subheadings are suggested. Some information in the introduction could be moved to literature review.
The justification for applying AHP (currently this content is included in research design section) needs to be supported by relevant literature.
The proposed SWOT matrix for Uzbekistan textile industry needs to be better justified by the relevant literature. Why only these factors in the present SWOT matrix are included?
I suggest the authors to have a conclusions and implications section to conclude the major findings and contributions of their study while providing the specific implications for the academics, the policy makers and industrial practitioners
The limitations and future studies should be presented in a section separate from the conclusions and implications section.
Author Response
[Comment 1]
This is an interesting study. Overall, this paper is clearly written. There are some issues that require the authors to address through responses or revision.
The analytic hierarchy process (AHP) needs to be clearly explained when it was firstly mentioned in the paper. The more detailed discussion on AHP may be included in the literature review.
Literature review needs to be reorganized in the way clearly explain the Uzbekistan textile industry development, SWOT analysis, the SWOT-AHP analysis. Subheadings are suggested. Some information in the introduction could be moved to the literature review.
[Response]
Considering the reviewer’s comments, we reorganized the chapter 2 by separating as “literature review and SWOT matrix composition” and “concept of AHP analysis and outline for applying AHP in SWOT analysis” to detail the concept of AHP and application of AHP in SWOT analysis. The specific revisions are as follows.
In Section 2.1, the literature review consisted of two parts as “general studies on the textile industry in Uzbekistan” and “SWOT analysis based development strategies for Uzbekistan’s textile industry” as follows.
“2.1 Literature review and SWOT matrix composition
The literature review consists of two parts: general studies on the textile industry in Uzbekistan and SWOT analysis based development strategies for Uzbekistan’s textile industry. Several studies on the textile industry in Uzbekistan have been conducted. Davronov [9] and Nargiza [10] examined the export and market potential of the Uzbek textile industry. ………”
In Section 2.2, we added sub-chapter to detail the concept of AHP and application of AHP in SWOT analysis as follows.
“2.2 Concept of AHP analysis and Outline for applying AHP in SWOT analysis
AHP is the decision-making methodology which reflects the experiences and intuition of respondents through pairwise comparison of the factors forming the hierarchical structure in decision making. It creates a pairwise comparison matrix, utilizes the eigenvalue method from its matrix, and estimates priority vector per a hierarchy. Numerical techniques are used to derive quantitative values from verbal comparisons. The advantages of AHP include its ability to make both qualitative and quantitative decision attributes commensurable, and its flexibility with regard to the setting of objectives. Subjective preferences, expert knowledge and objective information can all be included in the one and the same decision analysis. To solve the matters concerning the decision makings and judgment of importance of the experts, the AHP analysis has to go through 4 steps of process; 1) establishing the hierarchical model with factors, 2) conducting pairwise comparison among factors, 3) calculating the relative weighted value of factors, and 4) integrating the relative weighted value in evaluating factors. In the first step, a matrix with pairwise comparison sub-hierarchy factors related to achieve the purpose of top using 9 scales is established. If the number of components in the hierarchy is n, the number of pairs occurred in the pairwise comparison is n(n-1)/2. If the importance is defined as by pairwise comparison of n factors composed in one hierarchy, and in the pairwise comparison matrix are calculated as . Only the most important concepts of the AHP theory are presented here. For more details on the AHP analysis, readers are referred to [19, 20].
Basically, the results of an AHP analysis are the overall priorities of decision alternatives. The basic concept in utilizing AHP within a SWOT analysis is to systematically evaluate SWOT factors and commensurate their intensities. AHPs advantages, i.e. systematic approach to decision problems and commensurateness, can be regarded to be valuable characteristics in SWOT analysis. Additional value from a SWOT analysis can be achieved by performing pairwise comparisons between SWOT factors and analyzing them by means of the eigenvalue technique as applied in AHP. This offers a good basis for examining the present or anticipated situation, or a new strategy alternative, more comprehensively. After carrying out these comparisons, decision-makers will have new quantitative information about the decision-making situation; for example, whether there is a specific weakness requiring all the attention, or if the company is expected to be faced with future threats exceeding the company’s combined opportunities.”
[Comment 2]
The justification for applying AHP (currently this content is included in the research design section) needs to be supported by relevant literature.
[Response]
Considering the reviewer’s comments, we revised the manuscript to justify the application of AHP to SWOT analysis. The specific revisions are as follows.
In the 4th paragraphs of Section 1, we added a brief definition of AHP with reference as follows.
“The AHP enables decision-makers to represent the simultaneous interaction of many factors in a complex, unstructured situation. It helps them to identify and set priorities on the basis of their objective and their knowledge and experience of each problem [20].”
In Section 2.2, we added sub-chapter in Section 2 to justify the application of AHP in SWOT analysis as follows.
“Basically, the results of an AHP analysis are the overall priorities of decision alternatives. The basic concept in utilizing AHP within a SWOT analysis is to systematically evaluate SWOT factors and commensurate their intensities. AHPs advantages, i.e. systematic approach to decision problems and commensurateness, can be regarded to be valuable characteristics in SWOT analysis. Additional value from a SWOT analysis can be achieved by performing pairwise comparisons between SWOT factors and analyzing them by means of the eigenvalue technique as applied in AHP. This offers a good basis for examining the present or anticipated situation, or a new strategy alternative, more comprehensively. After carrying out these comparisons, decision-makers will have new quantitative information about the decision-making situation; for example, whether there is a specific weakness requiring all the attention, or if the company is expected to be faced with future threats exceeding the company’s combined opportunities.”
[Comment 3]
The proposed SWOT matrix for Uzbekistan textile industry needs to be better justified by the relevant literature. Why only these factors in the present SWOT matrix are included?
[Response]
The SWOT matrix proposed in this paper was established by integrating, classifying and adjusting the SWOT analysis results derived from four reputable institutions and papers among previous studies on textile industry of Uzbekistan. Specifically, the SWOT matrix was derived from the SWOT analysis results established by KOTRA, Korea Development Institute (KDI), Tursunov (Tursunov, N. N. 2008. Study on Development Strategy for Uzbekistan Clothing Industry. Master Thesis, School of Public Policy and Management, KDI), and Tillyakhodjaev (Tillyakhodjaev, A. 2016. Marketing Strategic Planning for the Textile and Clothing Supply Chain, Voice of Research 5(3): 32-34). In addition, the more factors that need to be analyzed, the more difficult it is to maintain the logical consistency of the response in the AHP analysis, so this paper limited the number of factors in SWOT matrix to four.
Considering the reviewer’s comments, we revised Sector 2.1 with a brief description of the SWOT analysis results from the relevant literature, and added the details to Appendix B. The specific revisions are as follows.
In Section 2.1, we described the SWOT analysis results from the relevant literature as follows.
“Especially, in Knowledge Sharing Programs held in 2016 and 2017, SWOT analysis and comparative analysis were utilized to suggest development strategies for Uzbekistan`s textile industry [4]. The strengths of Uzbekistan’s textile industry lie in its rich materials (raw cotton and cotton yarns), cheap labor, low-cost energy sources such as electricity and gas, a large domestic market (32 million consumers), access to the CIS and European markets, duty exemptions and tax benefits for raw materials, and an organization that can implement strong textile policies. The drawbacks of Uzbekistan’s textile industry include its weak basis for chemical fibers, which are essential given the recent trend toward functional textiles in the global market, and its relatively low-tech and obsolescent manufacturing base focusing on the exportation of cheap, general-purpose articles. Other issues include weaknesses in the logistics environment in terms of duration and cost due to its inland location, government control and lack of cooperation among branches, lack of water and low mechanization rate in the cotton industry, and dependency on importation of materials due to the unavailability of local materials for apparel production. Opportunity factors include expansion of new fashion trends through global sourcing, production with buyer compliance, possible growth of the high-potential CIS market, entry to the Eurasia Economic Cooperation, and the USA’s regulations on Chinese exports. Threats include environmental policies and CSR reinforcement in advanced countries, technical subordination by advanced countries and mid-to-low-price market encroachment from China and Vietnam. Tursunov [16] investigated a development strategy for the textile industry by means of a SWOT analysis. The textile industry in Uzbekistan has a high but thus-far-unrealized potential. It has considerable competitive advantages both in the domestic and international markets through the possessing of local raw materials. The high potential of textile industry development, in fact, could be one of the “growth points” for the entire national economy. However, government policy prioritizing exportation of cotton fiber along with minimization of its processing and exportation of ready-made products leads to considerable risk for the national economy due to the instability of world prices for cotton fiber, especially during periods of their sharply falling prices. Textile and garment suppliers from Uzbekistan have advantages as well as disadvantages in the market. Their main advantage is the existence of a raw material base in Uzbekistan, especially high-quality cotton, which gives an opportunity for further development and expansion of textile manufacturing. Uzbekistan produces more than 1 million tons of cotton fiber per year, but only a fraction of that is used by domestic textile enterprises. The proximity of raw materials sharply reduces transport costs and time for delivery to enterprises. A no less important advantage is Uzbekistan’s labor cost, which is cheaper than in rival countries. The literacy rate in Uzbekistan is almost universal at 98 percent, and workers are generally well educated and trained. Even though most local technical and managerial training does not meet international business standards, foreign companies engaged in production report that Uzbek workers learn quickly and work effectively. Besides, as Uzbekistan has leased crude oil and natural gas, it has some advantage in resource costs over rival countries such as China and Turkey. As for the cost of water in Uzbekistan, while water use in the textile industry is not so extensive, the relatively low water price affords some additional competitive advantages to the industry. Tillyakhodjaev [17] provided marketing strategic planning for an Uzbek textile and clothing supply chain by SWOT analysis. The author recommended that the textile and clothing supply chain be segmented into high and low-profit steps: retailers and brands should keep high-profit steps such as innovation, marketing and retailing, while low-profit steps, such as sourcing raw materials, production and assembly, finishing and packing, should be outsourced to mid-chain suppliers and low-cost producers worldwide. Indeed, global supply chains have established labor-intensive exports from low-cost locations, especially Far-east regions. The result has been enormous growth in the number of producers, and, thus, increasing competition.”
[Comment 4]
I suggest the authors have conclusions and implications section to conclude the major findings and contributions of their study while providing the specific implications for the academics, the policy makers and industrial practitioners
The limitations and future studies should be presented in a section separate from the conclusions and implications section.
[Response]
Considering the reviewer’s comments, we revised the concluding remarks section with the major findings, contributions, and limitations and future research plans. The specific revisions are as follows.
In the 1st paragraphs of Section 5, we emphasized the main difference of the findings of this paper from the other relevant research as follows.
“…. The main difference of the findings of this research from the other relevant research was in that it conducted the quantitative examination of the SWOT and provided the preferences of the decision-maker in planning and implementing the development strategies for Uzbekistan. Specifically, we took a look at the SWOT-analysis-based research that had been carried out in broadly examining the textile industry in Uzbekistan. Then, a SWOT matrix for an Uzbekistan textile industry development strategy was established by integrating, classifying and adjusting the SWOT analysis results derived from the previous studies. AHP analysis was utilized to quantify the importances and priorities of the components of the SWOT analysis. On that basis, this research provided concrete, effective and sustainable strategy directions reflective of rational selection and prioritization within a context of limited resources. This research might be meaningful in suggesting the basis of the establishment of a viable strategy for the development of the textile industry in Uzbekistan.”
In the 2nd paragraphs of Section 5, we added the future research plan to cover the limitations of this research as follows.
“The limitations of this study were its examination of various components of SWOT attributes through a literature review. Also, the AHP analysis limits the number of components per attribute to four, taking into account the fact that the greater the number of components to be evaluated, the more difficult it is to maintain logical consistency of responses. Future research will be more meaningful in analyzing the importances and priorities of the AHP and in further studying, with a structured model, the causal relationships among the key factors impacting on the development of Uzbekistan’s textile industry. And Future research will be conducted to show how three groups (Foreign Company, Joint Venture, Local Company) of textile companies face different situations and discuss what major factors influence each group and how different geographical regions of each company has different strengths, weakness, opportunities and threats.
Finally, we greatly appreciate the efficient, professional and rapid processing of our paper. If there is anything else we should do, please do not hesitate to let us know.
Yours sincerely,
The authors
Corresponding author:
Name: Jaehun Park, Ph. D.
Email: [email protected], Tel.:+82-53-819-7723
Round 2
Reviewer 1 Report
The current version of the manuscript looks much better than the earlier one. The revised version has been improved considerably and the authors have done a great job in revising the paper. I found the authors have addressed all my comments carefully by providing a more detailed research method, revising references in the text and strengthening the implications of the study. As a result, I now recommend that the current form can be accepted for publication without further modification.
