The Effect of Adopting the Customization Focus System on Competitive Advantage: A Study on Industrial Companies in Jordan

Abstract

This study examines the effect of adopting the Customization Focus System, encompassing Product Customization, Service Customization, Customer Co-Creation, Customer Interaction, and Technological Capability, on Competitive Advantage in Jordanian Industrial Companies. The research employs a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze 334 data collected through structured questionnaires from employees of Industrial Companies in Jordan. The findings reveal a significant and positive relationship between the adoption of the Customization Focus System and Competitive Advantage. Specifically, Product Customization, Service Customization, Customer Co-Creation, Customer Interaction, and Technological Capability are identified as key drivers of Competitive Advantage in Jordanian industrial companies. These findings have practical implications, highlighting the importance of customization strategies, customer involvement, and technological capabilities for firms aiming to enhance their competitive position. However, the study has limitations in terms of its context-specific nature and the use of PLS-SEM. Future research should consider broader contexts and employ alternative analysis methods to validate and expand upon these findings.