Diagnosing the Practice of Strategic Cluster Dimensions Using Cluster Analysis/ An Applied Research in a Number of Iraqi Private Commercial Banks

Abstract

The research aims to diagnose the extent to which the dimensions of strategic clusters namely (cooperation, competition, regulative procedures, specialized knowledge, logistics support, and mobilizing governmental support) are practiced in Iraqi private commercial banks, including (Baghdad of Bank, Middle East Iraqi Investment Bank, Iraqi Investment Bank, National Bank of Iraq, Sumer Commercial Bank, Gulf Commercial Bank, Iraqi Union Bank, Ashur International Bank for Investment, AL-Mansour Investment Bank, Trans Iraq Bank for Investment, and International Development Bank for Investment and Finance). Furthermore, the research seeks to classify banks into homogeneous groups based on the degree of similarity or dissimilarity among them, and to uncover the underlying structure of organizational and strategic relationships between banks by identifying convergent patterns in the adoption of strategic cluster practices. The research adopts a descriptive approach using a questionnaire distributed to a sample of (356) respondents drawn from a total population of (517) individuals, representing managerial levels (top, middle, and executive). Statistical analysis was conducted using a statistical software package to calculate the wei/ghted mean, standard deviation, and coefficient of variation. Additionally, the squared Euclidean distance matrix was employed to measure the distances between banks, along with the application of the (Ward Linkage) method to form strategic clusters and identify banks with similar characteristics. This was based on the arithmetic means of respondents’ answers for each dimension of strategic clusters for each bank individually. The research reached several key findings, most notably that the highest degree of similarity was observed among (Ashur International Bank for Investment, International Development Bank for Investment and Finance, Iraqi Investment Bank, Al-Mansour Investment Bank, and Middle East Iraqi Investment Bank), reflecting a clear convergence in adopting strategic cluster practices. In contrast, Sumer Bank exhibited the greatest divergence from the other bank.