Optimizing weaving industry clusters: strategic logistics and growth solutions for competitive regional development

This research explores the clustering potential of the weaving industry in South Central Timor District, a sector deeply embedded in cultural heritage with significant economic potential. A qualitative descriptive approach, complemented by spatial analysis using the Average Nearest Neighbor method in ArcGIS 10.5, was employed to identify clustering patterns and assess the feasibility of cluster formation. Of the 1,013 weaving SMEs analyzed, 78 agglomeration centers were identified, encompassing 795 SMEs, with a spatial ratio of 0.060856 and a Z-score of 57.295888, indicating a strong potential for industrial clustering. The paper examines both the opportunities and challenges associated with clustering, particularly in terms of infrastructure development and the need for enhanced collaboration among key stakeholders. It presents a cluster-based development strategy focused on sustainability, cooperation, and market expansion to improve the competitiveness of the weaving industry at local and global levels. The study highlights the critical need for strengthening institutional support, enhancing access to financial resources, and implementing capacity-building programs to improve the entrepreneurial and technical capabilities of artisans. Additionally, fostering partnerships between government bodies, private enterprises, and academic institutions is essential to encourage innovation and knowledge sharing. By adopting an inclusive and well-coordinated cluster development model, the weaving industry in South Central Timor has the potential to achieve sustainable growth while preserving its cultural heritage.