An-Najah National University 

Faculty of Graduate Studies 

 
EXAMINING THE READINESS OF THE 

PALESTINIAN LOCAL MARKET TO ADAPT TO 

THE EXTENDED REALITY TECHNOLOGY VIA 

ACADEMIC-INDUSTRIAL PARTNERSHIP 

 

 

By 

Mohammad Atawneh 

 

 

 

Supervisor 

Prof. Allam Mousa 

 

 

This Thesis is Submitted in Partial Fulfillment of the Requirements for the Degree of 

Master of Engineering Management, Faculty of Graduate Studies, An-Najah National 

University, Nablus - Palestine. 

2024 



26/6/2024



III 

 

Dedication 

Thank God for this achievement 

I dedicate this work to my parents 

My brothers 

All my family 

All my friends and colleagues 

  



IV 

 

Acknowledgements 

 

I am happy to thank everyone who contributed to it, even in a simple way, and I am happy 

to thank Professor Allam Mousa, who was greatly credited with illuminating the path of 

the search for me through his guidance and advice. Allah made it in the balance of his 

good deeds. 

I would like to thank all my teachers in the engineering management program at An-

Najah National University who facilitated my ability to complete and apply this study. 

I would like to thank everyone who cooperated with me to complete this study and 

allowed me to interview them, including managers, teachers, and company owners. 

I would like to thank all the people who have devoted part of their time to filling out the 

questionnaires. 

I would like to thank everyone who helped me with this study. 

  





VI 

 

Table of Contents 

Dedication ..................................................................................................................... III 

Acknowledgements ..................................................................................................... IV 

Declaration ..................................................................................................................... V 

Table of Contents ............................................................................................................ VI 

List of Tables ................................................................................................................ VIII 

List of Figures ................................................................................................................. IX 

Appendices ....................................................................................................................... X 

Abstract ........................................................................................................................... XI 

Chapter One: Introduction ................................................................................................ 1 

1.1 Overview ..................................................................................................................... 1 

1.2 Problem statement ....................................................................................................... 2 

1.3 Research questions ...................................................................................................... 4 

1.4 Importance of study .................................................................................................... 4 

1.5 Research objectives ..................................................................................................... 6 

1.6 The development of the theoretical model .................................................................. 6 

Chapter Two: Literature Review ....................................................................................... 8 

2.1 Overview ..................................................................................................................... 8 

2.2 Extended reality .......................................................................................................... 8 

2.2.2 Augmented reality .................................................................................................. 12 

2.2.3 Mixed reality .......................................................................................................... 13 

2.3 The role of extended reality in the development of industry in Palestine ................ 14 

2.4 Prospects for academic-industrial Partnership .......................................................... 19 

2.5 Model variables ......................................................................................................... 20 

2.5.1 Trainees .................................................................................................................. 20 

2.5.2 Training .................................................................................................................. 21 

2.5.3 Organizational Performance .................................................................................. 22 

2.5.4 Industrial –Academic Partnership .......................................................................... 22 

2.5.5 Innovation Readiness ............................................................................................. 24 

2.5.6 Strategic Readiness ................................................................................................ 25 

2.5.7 Resource Readiness ............................................................................................... 26 

2.5.8 Organizations' readiness to adapt ........................................................................... 26 

Chapter Three: Research Methodology .......................................................................... 28 



VII 

 

3.1 Hypothesis ................................................................................................................ 28 

3.2 Research Methodology Approach ............................................................................. 29 

3.2.1 Quantitative Approach ........................................................................................... 30 

3.2.2 Qualitative Approach ............................................................................................. 30 

3.3 The model operationalization ................................................................................... 31 

3.4 Population of the study ............................................................................................. 32 

3.5 Sample size ............................................................................................................... 32 

3.6 Data collection .......................................................................................................... 33 

3.7 Data Analysis ............................................................................................................ 33 

Chapter Four: Research Results and Analysis ................................................................ 35 

4.1 Descriptive Statistics ................................................................................................. 35 

4.1.1 Descriptive statistics for questioner respondents ................................................... 35 

4.2 Assessment of Measurement Model ......................................................................... 38 

4.2.1 Internal Consistency Reliability ............................................................................. 39 

4.2.2 Convergent validity (AVE and Individual indicator reliability) ............................ 40 

4.2.3 Discriminant validity ............................................................................................. 41 

4.3 Assessment of Structural Model ............................................................................... 43 

4.3.1 Assessing structural model for collinearity issues ................................................. 43 

4.3.2 Assessing significance and relevance of the structural model relationships ......... 43 

4.3.3 Assessing the level of R² (Coefficient of Determination) ...................................... 46 

4.3.4 Assess the level of f 2 ............................................................................................. 46 

4.4 Qualitative results ..................................................................................................... 47 

Chapter Five: Discussion and conclusion ....................................................................... 57 

5.1 Discussion ................................................................................................................. 57 

5.2 Quantitative conclusion ............................................................................................ 61 

5.3 Qualitative conclusion .............................................................................................. 62 

5.4 Limitations ................................................................................................................ 67 

5.5 Recommendations ..................................................................................................... 67 

List of Abbreviations ...................................................................................................... 69 

References ....................................................................................................................... 70 

Appendices ...................................................................................................................... 80 

 ب ............................................................................................................................... الملخص 

 



VIII 

 

List of Tables 

Table 3.1: Sample size recommendation in PLS-SEM for a statistical power of 80% (Hair 

Junior et al., 2014) ....................................................................................... 32 

Table 4.1: Descriptive results part 1 ............................................................................... 37 

Table 4.2: Descriptive results part 2 ............................................................................... 38 

Table 4.3: Cronbach's alpha, composite reliability (CR) and average variance extracted

 ...................................................................................................................... 41 

Table 4.4: Fornell-Larcker Criterion results ................................................................... 42 

Table 4.5: HTMT results ................................................................................................. 42 

Table 4.6: Inner -VIF values ........................................................................................... 43 

Table 4.7: Model path coefficients .................................................................................. 45 

Table 4.8: The level of R² ............................................................................................... 46 

Table 4.9:  f square (f2) ................................................................................................... 47 

 

 

 

 

 

 

 

 

 

 

 



IX 

 

List of Figures 

Figure 1.1: Proposed Research Model .............................................................................. 7 

Figure 2.1: Extended Reality Components ....................................................................... 8 

Figure 2.2: Real Environment to Virtual Reality ............................................................ 14 

Figure 3.1: Model of Readiness of the Palestinian Local Market to Adapt to Extended 

Reality Technology....................................................................................... 29 

Figure 4.1: Preliminary Results from The Model Analysis ............................................ 39 

Figure 4.2: The Model Result After Eliminating Some Indicators ................................. 39 

Figure 4.3: The Model Results........................................................................................ 44 

 

 

 

 

 

 

 

 

 

 

 

 

 



X 

 

Appendices  

Appendix A: Questionnaire ......................................................................................... 80 

Appendix B: Operationalization model ........................................................................ 88 

Appendix C: Links to videos on YouTube introducing extended reality technology ..... 91 

Appendix D: Interview Questions and interviewee answers ......................................... 92 

Appendix E: Institutions Interviewed ........................................................................ 103 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



XI 

 

EXAMINING THE READINESS OF THE PALESTINIAN LOCAL 

MARKET TO ADAPT TO THE EXTENDED REALITY 

TECHNOLOGY VIA ACADEMIC-INDUSTRIAL PARTNERSHIP 

By 

Mohammad Atawneh 

Supervisor 

Prof. Allam Mousa 

Abstract  

The rapid development of Extended Reality (XR) that consists of virtual reality (VR), 

augmented reality (AR), and mixed reality (MR) technology holds immense potential for 

various industries to revolutionize their operations. However, successful adoption of XR 

requires a market that is prepared to integrate this new technology. This thesis investigates 

the readiness of the Palestinian local market to embrace XR. 

This research proposes a model to assess the local market's readiness to adopt extended 

reality technology. The research utilized the questionnaire and interviews as quantitative 

and qualitative approaches, respectively. The study covered the research community, with 

80 samples representing the Palestinian government as well as private institutions and 

companies. The researcher distributed and analysed questionnaires using the SMART-

PLS program, as well as conducted manual analysis of 20 interviews with different 

institutions. 

The model consists of eight variables: training, trainees, innovation readiness, strategic 

readiness, and resource readiness, which are independent variables; organizational 

performance and industrial-academic partnership (IAP), which are intermediate 

variables; and the organization’s readiness to adapt to the technology of extended reality, 

which is a dependent variable. 

The study concluded that the Palestinian local market is already ready to adapt XR 

technology, and the interviews provided an insight into the opinions of Palestinian 

institutions with XR technology, the obstacles that exist, and how to overcome them 

through the industrial-academic partnership. The study revealed the local market's interest 

in XR technology across various sectors, particularly the engineering sector, despite the 



XII 

 

challenges faced by each sector, including material constraints and a shortage of qualified 

human resources. The study confirmed that the industrial-academic partnership will help 

overcome these barriers and challenges by providing training and addressing material 

obstacles. 

Accordingly, the researcher recommended establishing industrial academic partnerships, 

providing the necessary resources to adopt this technology in all sectors, and supporting 

start-up companies in this field.  

Keywords: Extended Reality, Readiness to Adapt, Industrial-Academic Partnership, 

Local Market. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



1 

 

Chapter One 

Introduction 

1.1 Overview 

Imagine a world where learning transcends textbooks, tourism transcends brochures, and 

businesses transcend physical limitations. This world is on the horizon, propelled by the 

transformative power of Extended Reality (XR) technology. However, for this potential 

to become reality, a critical question arises: is the Palestinian local market ready to adapt 

XR? 

Extended Reality (XR) is a cutting-edge technology that blends the real and virtual 

worlds. This term includes virtual reality (VR), augmented reality (AR), and mixed reality 

(MR), each offering distinct experiences ranging from fully virtual environments to 

additions to the real world. XR applications span diverse sectors, from entertainment and 

gaming to education and healthcare, where XR can power innovative solutions for 

training, education, design, and entertainment (Elias et al., 2019). 

Extended reality applications have transcended computer games and programmers’ 

imaginations. they are now a vivid reality in education and training, engineering, design, 

architecture, security, defense, medicine, entertainment, and other fields. It opens new 

worlds for humans’ ambition that allows them to overlook a hypothetical world in which 

to unleash their ideas, expand their horizons, and gain experiences that may be difficult 

or impossible to acquire in objective reality and to achieve goals as long as they have 

imagined. 

For example, would you like to explore the surface of a planet like Mars or Saturn? Would 

you like to fly a drone? Can you perform surgery before becoming a doctor? Also, do you 

want to build your designs, test them, and present them to others to express their opinion 

on them and even test and deal with them? (Pallavicini & Bouchard, 2019). 

Organizations are rushing to enter the world of extended reality and are looking for 

opportunities through which to achieve excellence (Roos et al., 2020). Exploiting these 

opportunities and using them does not come by chance but rather requires prior strategic 

planning for the institution's work and creating partnerships between organizations, such 



2 

 

as the academic-industrial partnership. Therefore, it is necessary to know the ability of 

the Palestinian local market to adapt to the extended technology.  

The use of virtual reality in the educational process has an effective and attractive effect 

because it provides the learner with a variety of virtual educational environments that are 

difficult to access in the real environment (Ahir et al., 2020). Medical students can look 

at very minute details in the human body, such as the heart. Students can see it virtually 

from all sides, from the inside and outside, and see the work of the valves and how blood 

flows in the heart and the human body (Pottle, 2019). 

Engineering students from all disciplines can use extended reality technology to solve 

engineering problems. Mechanical engineering students, for example, can learn about the 

parts of machines and how to use them through this technology. This technology also 

helps art students to facilitate their studies by simulating works of art and how to create 

them. It also assists students of the arts by providing three-dimensional lessons about 

geographic regions and simulating some historical events, among other things (Delgado 

et al., 2020). 

1.2 Problem statement  

The adoption of Extended Reality technology has the potential to revolutionize several 

different local industries in Palestine, including the healthcare, tourism, education, and 

entertainment sectors. However, integrating XR technology successfully requires 

overcoming several barriers and difficulties. There are many obstacles preventing the use 

of extended reality, such as the lack of qualified personnel for training in extended reality 

technology, the lack of extended reality devices, and the lack of training materials or 

strategic plans for adoption. 

The goal of this study is to determine whether the Palestinian local market is prepared to 

adopt XR technology and to pinpoint any barriers that might prevent its widespread 

adoption. The study will look into the potential advantages of encouraging academic-

industrial collaborations to help Palestine adopt and develop XR technology. This will 

make it possible to deal with the difficulties that have been raised. 

This study will provide insights and recommendations that can assist policymakers, 

businesses, and academic institutions in Palestine in developing effective strategies for 



3 

 

adopting extended reality technology. By leveraging academic-industrial partnerships, 

this study seeks to foster an ecosystem that facilitates the adoption of XR technology. 

Such an ecosystem would be responsible for driving innovation, economic growth, and 

enhanced experiences in a variety of Palestinian market sectors. 

Therefore, due to the spread of this technology and the possibility of employing it in many 

fields, it has become possible to exploit the extended reality technology in establishing 

businesses and working to invest in and through this technology, in addition to 

establishing companies that exploit such technologies (George et al., 2021). It can also be 

exploited in research and development, which will reflect on the development and 

prosperity of the economy. 

With the rapid development in the technological field, it was inevitable that the marketing 

plans of companies and their areas of interest would be affected. Chances of success will 

diminish if traditional thinking does not change, and yesterday's mentality does not work 

today. Therefore, today, this technology must be used to communicate an image of the 

product to the consumer in an effective manner (Melović et al., 2020). 

Extended reality technology represents a new challenge for companies not only in 

Palestine but in the whole world in their ability to deal positively with it and to know the 

extent of its impact on individuals and institutions (Dwivedi et al., 2022). Therefore, the 

use of this technology requires great effort, and investment in this technology must be 

accelerated to develop companies and do professional marketing. 

Virtual Reality and Augmented Reality are relatively new ideas that have just emerged at 

An-Najah National University (ANU), one of the first institutions in Palestine to establish 

some related centers. To get the most out of this technology and speed up development 

and learning in developing countries, it is important to understand its importance, how it 

can be used in education at all levels, and how it can be used in different industries. 

Therefore, this research will assess the readiness of the local Palestinian market to adapt 

to extended reality technology. 

 

 



4 

 

1.3 Research questions  

The primary focus of this thesis is on the following main research question: 

• Is the Palestinian local market ready to use extended reality technology?  

sub-questions follow the main research question, and they are:  

• To what extent can academic-industrial partnerships bridge the gap between existing 

XR technology and the needs of the Palestinian local market? 

• How can academic-industrial partnerships in Palestine promote the development of 

appropriate XR content and ensure global accessibility? 

Surveys and interviews will be conducted with companies, consumers, and academic 

institutions to measure their awareness and understanding of XR technology, show the 

relationship between the industry and the academic sector, and find out the possibility of 

adapting the local market to extended reality technology. In addition, the extent of 

stakeholder familiarity with the use cases of XR and the potential benefits in different 

sectors will be researched, and we will analyse the data to determine the level of 

awareness. Any knowledge gaps or misconceptions will be identified. The current 

technological infrastructure in the Palestinian local market will be assessed, and 

stakeholders will be interviewed to understand their views on collaboration and 

knowledge transfer. 

1.4 Importance of study  

In a time when technology is a big part of our lives, when the development of apps and 

technologies is speeding up, when smart devices like phones, iPads, and others make it 

easy to get any kind of information, and when our world is turning into virtual ones where 

each person lives, roams, travels, learns about things, and studies, it is necessary to make 

the best use of these technologies. 

Under such conditions, one of the most recent and most important technologies is 

Extended reality technology, which will take all sides of life (including education, health, 

trading manufacturing...) to a new and more advanced level. Extended reality 

technologies have come in many forms that we can use to help science, students, teachers, 

industrialists, farmers, traders, and more. Hence the importance of XR in our lives. 

Understanding the impact of XR technology on different categories of people, like 



5 

 

students, teachers, and industries, is an important factor in determining the readiness of 

Palestinian industries to adapt to extended reality technology. 

A clear benefit of incorporating XR into education is that it gives students access to 

educational environments that are otherwise out of reach. For example, students can look 

at volcanoes through XR headsets and can see planets and interact with them. Medical 

students can contemplate human organs and how to deal with them through XR 

technology(Pottle, 2019). 

The importance of XR in the industry is also evident, as many industries are already using 

XR in their day-to-day operations (Zabel & Telkmann, 2021). For example, the 

automotive sector uses advanced simulation and visualization tools in the manufacturing 

process. Simulation findings, such as in technical analysis, scientific visualisation of fluid 

dynamics, or crash analysis data, may be evaluated in a more realistic manner using XR 

technology in this subject. Also, as a driver-training tool, this technology is being utilised 

to simulate real-life situations and teach safe driving. This is a way to market and sell cars 

so that buyers can enjoy what it's like to drive different kinds of cars (Gardelis et al., 

2018). 

In marketing, it's always a good idea to keep up with the latest trends, so marketing 

through XR is very popular right now. Just seeing a XR headset will get people interested 

in what's on the screen, making it easy to reach more possible customers (Hamad & Jia, 

2022).  

The public and media interest in XR will give the marketing campaign a huge boost and 

give it more credibility, which will lead to more people joining (Bojic, 2022). 

People see many ads every day, but they don’t want to buy products because people are 

bored with ads like outplayed videos, etc., which can cause large ad campaigns to fail. 

So, the best way to make ads that people will remember is to combine advertising with 

entertainment. Because of this, marketing campaigns for brands that use XR will be more 

interesting, which will help them get more customers (de Regt et al., 2021). 

It is possible to simulate any kind of medical emergency by Using XR to put students in 

a realistic situation, and then providing them with feedback and debriefing so they can 

grow from their experiences (Pottle, 2019). Adaptable and extensive Through the use of 



6 

 

XR, doctors can see previously inaccessible parts of the human body. Medical students 

no longer must perform autopsies; instead, they can use XR to learn about human anatomy 

(Zhao et al., 2020). Thanks to advancements in computer graphics, it is now possible to 

accurately recreate any anatomical structure. Also, training can be provided through 

scenarios that accurately reflect real-world surgical conditions (Cooper et al., 2021). 

1.5 Research objectives  

To answer the research questions accomplished in a previous section, the following 

objectives should be achieved: 

• Examining the readiness of the Palestinian industries to adapt to an extended reality of 

technology 

• Demonstrating the role of the academic-industrial partnership in helping Palestinian 

institutions adapt to the technology of extended reality 

• Determine the importance of using extended reality for educational institutions in 

Palestine. 

• Determine the importance of using extended reality for industries in Palestine. 

• Knowing the community's awareness of the extended reality technology 

• Determine what the Palestinian local market has in terms of technological resources 

and infrastructure needed to support XR technology. 

• Identify barriers to XR adoption by businesses and consumers, and identify how to 

overcome these barriers. 

• Determine which Palestinian economic sectors have the potential to adopt XR 

1.6 The development of the theoretical model   

After defining the problem and collecting data, a model was built containing eight 

variables as shown in Fig 1.1. Five of the variables are independent variables, which are 

training, trainees, innovation readiness, strategic readiness, and recourse readiness; two 

mediating variables, which are organizational performance and industrial-academic 

partnership; and one dependent variable, which is organizations' readiness to adapt. 



7 

 

Figure 1.1 

Proposed Research Model 

 

Based on the literature, hypotheses were made to find out if the Palestinian industries are 

ready to adapt an extended reality technology, what role the academic-industrial 

partnership plays, and what other factors (innovation readiness, strategic readiness, and 

resource readiness) affect the adoption of an extended reality technology. Accordingly, 

the following hypotheses were developed: 

H1: There is no statistically significant positive effect of trainees on organizational 

performance. 

H2: There is no statistically significant effect of training on organizational performance. 

H3: There is no statistically significant association between organizational performance 

and the existence of an industrial-academic partnership. 

H4: There is no statistically significant effect of an industrial-academic partnership on the 

organization's readiness to adapt. 

H5: There is no statistically significant effect of innovation readiness on the organization's 

readiness to adapt. 

H6: There is no statistically significant effect of resource readiness on the organization's 

readiness to adapt. 

H7: There is no statistically significant effect of strategic readiness on the organization's 

readiness to adapt. 



8 

 

Chapter Two 

Literature Review 

2.1 Overview 

The present chapter will explain various forms of extended reality, namely virtual reality, 

augmented reality, and mixed reality. Additionally, it will examine the impact of extended 

reality on Palestinian industries and underscore the significance of strategic planning in 

harnessing this technology. Furthermore, the variables and hypotheses of the model will 

be explained. 

2.2 Extended reality  

The concept of extended reality encompasses augmented reality (AR), virtual reality 

(VR), and mixed reality (MR) as shown in Fig 2.1. This involves the integration of 

computer graphics and human interaction to create a seamless blend of real and virtual 

reality, utilizing virtual, augmented, and hybrid technologies (Kaplan et al., 2021). 

Figure 2.1 

Extended Reality Components 

 

 

The utilization of Extended Reality (XR) technology provides a secure and controlled 

virtual setting for individuals to acquire knowledge and skills, without exposing them to 

any potential harm. This technology also facilitates the simulation of high-risk scenarios 

for professionals such as medical practitioners, firefighters, and pilots, with minimal costs 

and losses in terms of resources and human life. The acquisition of experience proves 

beneficial in a multitude of exigent circumstances (Casini, 2022).  

Extended reality has been a big, important, and even useful part of how the education 

system has grown and changed (Hamilton et al., 2021). This is because modern learning 



9 

 

tools like screens, electronic glasses, and computers have been used to teach students in 

more advanced ways. 

Because of this, it is important to train both the teachers and the students how to use this 

technology in education and to put it to use when making educational plans. So, institutes 

must train a group of educators who can explain and make the modern curriculum easier 

to understand. This improves the performance of both students and teachers, who must 

also work on the system for evaluating students by using electronic files to evaluate the 

student and strengthen the relationship between the student and the teacher (Susilawati et 

al., 2022). Advanced open-source educational resources are important for the education 

system, and both students and teachers should be able to use them. 

The new world that uses modern technology in the industry should know that it's not just 

about creative ideas and smart software. It also needs a group of workers to monitor and 

run operations. Recently, (Rutkowski et al., 2021) said that video games improve hand-

eye coordination, which is a skill that hundreds of computer operators need. Those who 

run industrial operations now are in desperate need of it. So, to get the best results, the 

extended reality must be made to adapt to the industry.   

In the future, consumers will find great ease and comfort in making purchases with the 

help of extended reality technologies. These gadgets make it possible to attend events 

anywhere in the world from the comfort of your own home, via the Internet. 

Extended reality technology, for instance, might be used to display text that you could 

only see through your glasses on billboards along streets and buildings. There will be a 

fresh movement in the future years toward developing digital simulations for use in 

anticipating weather and climate change-related crises. Mentalists speculations a robot 

can hold a natural conversation with a person, respond to human commands, learn from 

past interactions, and display astonishing facial emotions. 

Extended reality aims to take advantage of human participation and interaction with 

computerized devices on the one hand and with human counterparts located in other 

places through visual and audio communications that bring together the two parties in a 

direct meeting that simulates the real meeting with high accuracy and makes those who 

watch the meeting feel as if they are in one place. 



10 

 

2.2.1.1 Virtual reality 

Given today's tremendous advancements in all facets of life, and as a result of the intense 

rivalry to find new products, scientists have succeeded in creating a new world, one that 

may be seen as a counterpart to the current one: the virtual reality world. Through a virtual 

reality environment, a person can interact with an environment produced by a computer 

using many technologies and techniques (Huang & Liaw, 2018). Virtual reality 

technology has become widely used in many industrial, educational, military, and even 

video game fields (Ahir et al., 2020).  

Many researchers defined virtual reality as a convincing portrayal of a world that doesn't 

exist, it is possible for the user to freely roam about a virtual world created by hardware 

and software components working together. It is now possible to interact with and "live" 

in virtual reality thanks to specialized VR viewers and peripherals. To the user's eyes, a 

three-dimensional virtual world appears real (El Beheiry et al., 2019). 

Gironacci, (2021) defined VR as a lifelike simulation of an alternate reality that does not 

exist, it is the result of a collaboration of hardware and software components that 

"collaborate" to create a virtual area in which the user can freely travel, Virtual reality 

viewers and accessories designed expressly for interacting and "living" in virtual reality 

enable access to this digital world. 

Kohli et al., (2022) say that in virtual reality, computer technology is used to simulate the 

environment, so viewers become integrated and able to interact with 3D science with ease 

without the screen in front of them. You can simulate the largest number of senses used, 

such as sight, touch, smell, and hearing, so the computer is now the gatekeeper to enter 

the artificial world. 

Virtual reality devices contain a lot of technology and features for example In virtual 

reality technology, components can be represented through the screen that is mounted 

above the head, so the display technology has a difference and is different from the 

traditional old user interfaces (Jin et al., 2022). And we can see data for virtual content 

on screens the size of the room. which is a great help for students in universities or 

workers in large laboratories.  

Virtual reality technology also contributes to many areas, if not all. Consider how much 

more interesting the class would be if they included a virtual reality tour in the lesson 



11 

 

bundle, such as teachers there are warming to the idea of using virtual reality and 

augmented reality tools to help teach their lessons, with more interest emerging from the 

fields of science (Chen & Liu, 2020), history, and engineering (Iatsyshyn et al., 2020). 

The devices of VR are now wearable and different types of virtual world glasses and 

advanced wearable devices can be worn (Pellas et al., 2021), and there are many 

applications for people with learning disabilities who might struggle in a typical 

classroom setting, A virtual reality headset allows struggling learners to get the 

environment they need to learn correctly (Bjekić et al., 2020). 

Using computer-generated visual and aural effects, virtual reality (VR) and augmented 

reality (AR) technologies create a whole new scenario that can't be touched but can be 

felt and heard. 

Although both VR and AR aim to simulate the real world, the resulting virtual realities 

are distinct. Virtual reality (VR) is a computer-generated simulation of a different world 

or reality, typically employed in three-dimensional media such as films and games.  

This technology allows users to immerse themselves in a 360-degree digital environment 

while blocking out all external stimuli using headphones (like the Oculus Rift) (Lee et al., 

2021). Users of virtual reality systems are immersed in the action. Users, rather than 

staring at a screen, are transported into this environment and can interact with it in three 

dimensions through the use of sensory simulations that include sight, sound, and smell. 

The goal of virtual reality is to "immerse" the user in a simulated environment by isolating 

them from their physical surroundings through the use of computers and sensory devices 

like headphones and gloves (Asaad, 2021). The most common virtual reality devices are 

the HTC Vive, Oculus Quest, Samsung Gear VR glasses, and Google Cardboard. 

In virtual reality, computer technology is used to simulate the environment despite the old 

interfaces, as it puts the user inside the experience, so the viewers become immersed and 

able to interact with the three-dimensional science with ease, without the screen being in 

front of them only (Challenor & Ma, 2019).  

Computer-generated virtual reality (VR) immerses the user in a synthetic three-

dimensional space that moves and reacts to physical reality. Displays are often worn on 



12 

 

the user's head, and gloves with touch-tracking technology are used to control the device 

(Gandhi & Patel, 2018). 

Czernuszenko et al., (1997) say Virtual Reality (VR) is a technology that allows the 

creation of an environment similar to reality using a computer, using a computer screen, 

stereo speakers, or glasses. It works by showing a picture that looks like reality in places 

where people can't go or make things. 

Talbot et al., (2012) say the use of virtual reality (VR) technology has expanded far 

beyond the realms of entertainment and gaming to include academic and medical settings. 

Surgeons utilize this tool for preoperative planning and surgical rehearsal, and the military 

has utilized it to replicate the effects of extreme weather on training exercises. 

2.2.2 Augmented reality  

Through the use of Augmented Reality (AR), digital information is superimposed on the 

real world, creating a new experience that combines the tangible and sensual with digital 

information. Asaad, (2021), and composed entirely of non-physical components that we 

can see, hear, and interact with, but not touch. It is among the most popular applications, 

filters for social media applications. 

Augmented reality is the use of a computer as a sensor and algorithms to determine the 

direction and position of the cameras (L. Chai et al., 2002). AR technology can show 

three-dimensional graphical interfaces through the camera, which causes images to be 

superimposed through the computer and shown to the user in a real-view image. 

Augmented reality (AR) is a technology that uses your surroundings and augments them 

with computer-generated or digitally-generated content to create an immersive, 

convincing virtual environment (Rauschnabel, 2021). When seen through a mobile 

device, it gives digital content (films, images, links, games, etc.) the appearance of being 

physically present. Also, (Petrov & Atanasova, 2020) define augmented reality as the 

process of adding digital layers to our perception of the physical environment. Just like 

what you saw in "Iron Man" in terms of how characters interacted. To superimpose virtual 

items onto the real world, devices equipped with cameras or sensors must first map and 

define the outside world. 



13 

 

Among the applications of augmented reality, the user can, for instance, look up nearby 

restaurants as they appear on a three-dimensional display of the user in real-time as he 

travels the roads, all thanks to the use of augmented reality to identify information or data 

through layers of scenes that appear to him in real reality (Parekh et al., 2020). 

2.2.3 Mixed reality 

Sometimes called "hybrid reality," this innovative technology combines the advantages 

of both virtual and augmented environments as shown in Fig 2.2. In this setting, you can 

interact with virtual things that have been placed in the real world. User interaction is 

maintained as digital elements are superimposed on the physical world. 

Mixed reality technology enables the preservation of the authentic physical environment 

while incorporating virtual elements within it. Mixed reality offers the capability to 

manipulate virtual elements within a given scene, enabling the user to adjust their 

dimensions and spatial location. This functionality expands upon the existing features of 

augmented reality, allowing for a more immersive experience (Venkatesan et al., 2021). 

Mixed reality technology facilitates the integration of diverse components, such as 

tracking head movements to simulate a person's presence in a realistic environment and 

utilizing sensors to survey the surfaces within a room. Furthermore, the surveillance of 

the luminosity and acoustic levels within the proximate milieu. The identification of 

objects and the determination of their location are also encompassed within the 

components of mixed reality. A genuine mixed reality encounter is established through 

the amalgamation of computer processing, human cognition, and the surrounding 

environment (Zhang et al., 2020). 



14 

 

Figure 2.2 

 Real Environment to Virtual Reality 

 

2.3 The role of extended reality in the development of industry in Palestine 

Many important things extended reality does to help the industry grow, such as better 

training and skill development, which gives employees training environments that are 

immersive and real, so they can practice and improve their skills in a place that is safe 

and under control. It also has the potential to make training programs more effective in 

many different areas, such as industrial simulations, medical procedures, and the use of 

complex machinery. This can then lead to more skilled workers and more work being 

done. 

Extended reality lets professionals in fields like architecture, engineering, and product 

design see and change their ideas in three dimensions. This will make design and 

visualization better and will let stakeholders try out virtual prototypes and give feedback 

on them. This improves teamwork, cuts down on design mistakes, and speeds up the 

development process as a whole (Taniguchi et al., 2022). 

XR has the potential to give customers interactive and personalized shopping and 

marketing experiences. AR applications, for example, let customers virtually "try on" 

products. This makes customers more interested and helps them make better buying 

decisions (Feng et al., 2019). 

in medicine XR is changing the way medical training is done, as well as how surgical 

procedures are planned and carried out and how patients are cared for. Surgeons can 



15 

 

practice complicated procedures in virtual environments, and other medical professionals 

can use augmented reality (AR) to add information about a patient while treating them. 

This leads to better results and a safer experience for the patient (Venkatesan et al., 2021). 

Also, XR is used to help workers follow assembly instructions and see data in real-time, 

which speeds up the manufacturing process. This lets XR help streamline the process of 

making and putting things together. This makes manufacturing industries more 

productive, reduces the number of mistakes, and improves quality control. 

One way that XR is changing education and makes it more accessible is by giving students 

learning experiences that are both interactive and interesting. By giving them tools like 

immersive historical simulations and digital field trips, XR helps students understand and 

remember hard topics better. 

In the research and development field, extended reality (XR) lets scientists and engineers 

do tests and simulations that might not be possible in the real world. This could speed up 

innovation and help scientists make progress in several different fields (Orr et al., 2021). 

In general, XR technologies can be used in a wide range of ways that can improve 

productivity, innovation, and customer experience in many different fields. As these 

technologies continue to improve and become easier to use, they will likely have a much 

bigger impact on the growth of different industries in the coming years. 

The industrial sector in Palestine faces a lot of problems that slow down development and 

make the growth process harder. So, the right priorities and steps need to be taken to make 

sure that all Palestinian cities have complete and sustainable industrial development. This 

is done by figuring out and improving each industry's competitive edge, highlighting 

production capabilities, and figuring out and evaluating the resources and needs in all 

sectors. 

To move the industrial sector forward, it is important to make industrial sectors and 

facilities more competitive, increase production and export capacities, develop 

Palestinian products and increase their share locally, promote them internationally, and 

reach global markets. In addition, investment in human capital will increase productivity 

and competitiveness. Also, the business environment can be improved and promoted. 



16 

 

Investing in the industrial sector and supporting innovation and creativity to advance the 

industrial sector 

The industrial sector also has a lot of strengths and opportunities, especially in making 

furniture, shoes, stone, traditional and craft foods, plastics, etc. In addition to 

infrastructure, which includes electricity, water, a road network, communications, and 

private centers for industrial services like maintenance, machinery manufacturing, and 

exhibitions, there is a large population with a wide range of specializations and interests. 

To get the most out of modern technology, such as extended reality technology, it needs 

to be used in training, design, development, and expanding production lines. Integration 

of this available modern technology and strengthening it with the necessary tools while 

providing the necessary training for operation are in addition to using this technology in 

marketing and strengthening the information technology industry sector, as well as 

integrating such technology in the industrial sectors to maximize performance and 

productivity levels through launching pilot programs (Cardenas-Robledo et al., 2022). 

So, centers for skill development and training should be set up so that extended reality 

technology can be used in manufacturing, design, product development, and marketing. 

For example, fashion design is one of the most prominent industries in Palestine. Through 

extended reality technology, we can continuously explore the latest international trends 

in fashion, thus determining other materials and additions through the Product 

Development Center.  

Labor development service centers should also be set up to train and certify people in 

management, planning, marketing, finance, production, and other services using extended 

reality technology and other technologies. 

It is also very important to develop specialized and modern vocational training, education, 

and qualification, as well as to set up specialized vocational training centers that use 

extended reality technology to improve the skills of workers in the sectors, provide 

qualified workers, and set up vocational programs through partnerships with universities. 

In addition to helping workers learn how to make plans, market their products, and sell 

them abroad, the industrial sector: 



17 

 

Also, vocational training centers should be set up with specialized and updated programs 

to qualify human resources for the necessary professional cadres, encourage leadership, 

and create a link between local universities and the local market to come up with new and 

useful ideas that fit the work and needs of all sectors. 

Another side is the tourism sector in Palestine which has a lot of unique characteristics. 

There are many archaeological tourist attractions in Palestine that many people are 

ignorant of, and these attractions occupy a religious place for people, such as the Al-Aqsa 

Mosque in Jerusalem, the Al-Ibrahimi Mosque in Hebron, and the Church of the Nativity 

in Bethlehem. These monuments, themselves are a national treasure if properly exploited. 

In addition to the many scenic landscapes that spread in Palestine from its north to its 

south and the presence of the oldest city in the world, the city of Jericho, which can be 

exploited through medical tourism. So, using the technology of extended reality in this 

sector to create virtual environments, explain their features and importance, and explain 

where they will help to get tourists from all over the world interested in traveling, which 

will increase the demand for tourism. This technology can also be used to promote the 

handicrafts that are typical in Palestine. This will help many professionals and skilled 

craftsmen in the community make more money. 

Extended reality technology can also be used to improve how well farmers do their jobs 

by helping them learn how to do their jobs better. For example, workers can use extended 

reality technology to learn how to use and set up aquaponic systems. This technology also 

helps promote agricultural products. This technology makes it possible to grow plants, 

determine how much water they need, and take care of them. 

Therefore, this technology will help promote farmers’ experiences in addition to their 

products, as well as their acquisition of high levels of experience in many agricultural 

fields. This technology will also help in educating the public about agricultural matters 

and how to take care of their crops without limiting them to certain varieties, so their 

desire to try new varieties will increase. 

Currently, extended reality technology has been used in several fields in Palestine, where 

it was widely used initially in the field of games and gained wide popularity as there were 

many models in many Palestinian governorates, such as the Virtual Reality Games Cafe 

in the Gaza Governorate, which constitutes a breather for the youth of the people of Gaza 



18 

 

under the siege imposed on them, and the "VR zone" hall in Ramallah Governorate, also 

the “family paradise" in Hebron Governorate, and others. 

Later, it was used in the tourism sector, such as the project of the Palestinian young 

woman Saja Abu Dalal, which was with a group of young people and was one of the first 

Palestinian projects in this field. They launched the "Pal VR" project, which works on 

photographing tourist places with 360-degree technology. This project aims to introduce 

tourist places in Palestine and link Palestinian cities separated by Israeli barriers. 

There was also a hackathon to encourage digital tourism in the Palestinian Technological 

Park in 2022, and one of the most prominent projects of these hackathons was to 

encourage astronomical tourism, archaeological tourism, and religious tourism using 

virtual reality and augmented reality technology. 

Then this technology spread to include higher education in Palestine in Palestinian 

universities such as An-Najah National University, which established a centre for training 

teachers and students alike on the use of this technique for optimal and effective 

exploitation; the Arab American University, which introduced this technology to train 

nursing students to learn basic skills in the field of nursing; and Palestine Polytechnic 

University, which is working to develop education with these technologies in the field of 

geographic information systems and topography and has used this technology to restore 

the old town in the city of Hebron in partnership with the local community. 

The use of this technology appeared in the modern school in Gaza City, where the 

students expressed their admiration for this technology, which helped them bring many 

concepts closer together. Also, one of the Palestinian companies called "InterTech" began 

working on the development, programming, and marketing of extended reality 

technologies. 

 

 

 



19 

 

2.4 Prospects for academic-industrial Partnership 

 The relationship of the private sector with universities is a mutual and continuous one, 

where the outputs of universities are inputs for the labor market and the private sector, as 

these inputs depend on the quality of the system of education in these universities and the 

quality of the outputs produced by the universities. 

The partnership between the private sector and universities in research and development 

is a strategic partnership that benefits both parties. Any economic progress does not arise 

from a vacuum but rather was originally an idea and an experiment studied and then 

appeared on the ground as a producer, so the capabilities of laboratories, research centers, 

and universities are the home of first experiences. So, it is not surprising that there is a 

partnership between universities and the private sector because research and development 

laboratories are universities and institutions of higher education. 

The higher the efficiency of higher education institutions, the higher the efficiency of the 

internal workforce in the private sector. And whenever you reduce it, it leads to weakness 

and remoteness; as the inputs become unsuitable for the private sector, the cost of re-

equipping them increases, and their contribution to the development of the private sector 

decreases. 

In addition, the universities' lack of understanding of the meaning of partnership 

necessitates holding meetings, seminars, and workshops, and activating communication 

largely throughout the year, away from the limelight, to activate this partnership. It is also 

supposed to be reserved for the private sector, which must have a say or a role in planning 

curricula because we still do not know what the private sector wants or the changes that 

are coming, brought about by partnerships with universities. Also, universities must 

attract the private sector and show them the importance of scientific research, and 

solutions must be presented to eliminate many of the problems. 

 

 

 



20 

 

2.5 Model variables 

To answer the main question in this research. It was necessary to create a model to identify 

the role of the academic-industrial partnership in adapting extended reality technology to 

the local market in Palestine. 

Following an analysis of the relevant published material, a model consisting of eight 

variables will be developed to determine the likelihood of Palestinian institutions 

adopting the technology of extended reality. These variables include trainees, training, 

organizational performance, industrial-academic partnership, innovation readiness, 

strategic readiness, recourse readiness, and organizations' readiness to adapt. 

2.5.1 Trainees 

Workers can help a company succeed, improve its performance, and foster more 

communication if they each do their part to maximize efficiency (Atmaja et al., 2023). 

Determining the needs of the organization and the individual, selecting or designing the 

most appropriate training to achieve these needs, and then transferring and assessing the 

effectiveness of this training may all necessitate the participation of multiple people 

throughout the training process. 

The employee's ability to perform his work and to avoid mistakes is greatly enhanced by 

in-service training because the employee gains new knowledge and skills necessary for 

his profession or because the employee is introduced to the best solutions to the problems 

he faces while practicing his profession. 

Modern technology provides the trainees with a degree of interaction with the virtual 

environment (Lokuge et al., 2019; Ortiz et al., 2019), helps them achieve training goals 

more quickly than normal training, and provides many opportunities for practical 

practice. It also provides the trainees with different environments for training, helps them 

obtain a lot of information and experience, and raises their motivation to work on the 

ground (Mulders et al., 2022). 

 

 



21 

 

2.5.2 Training 

Training refers to a systematic and deliberate endeavor aimed at equipping personnel in 

the educational system with specific knowledge, enhancing their skills and abilities, 

fostering their growth, and promoting positive and constructive changes in their behavior 

and attitudes. Therefore, training affects the organization's performance (Anwar & 

Abdullah, 2021; Saeed, 2011) 

Training can be defined as the process by which an employee or teacher performs tasks 

by the policies, procedures, and conditions of their educational institution. The training 

aims to acquire knowledge and experiences, as well as gather the information that may 

be lacking. This process also involves developing appropriate attitudes towards work and 

authority, adopting behavioral patterns, acquiring necessary skills, and forming habits 

that enhance one's efficiency in performance. 

Training is a comprehensive and ongoing systematic endeavor that seeks to enhance or 

cultivate an individual's knowledge, abilities, and conduct to execute their work with 

optimal efficiency and effectiveness. It is also characterized as a consistent and 

continuous undertaking throughout an individual's lifespan that aims to augment their 

capacity to attain a superior level of performance and professional advancement by 

imparting knowledge, skills, and attitudes relevant to their area of work or expertise.  

Also, the term training refers to a deliberate and structured initiative that seeks to enhance 

the competencies, technical aptitudes, and behavioral proficiencies of staff members, 

thereby enabling them to perform their duties with optimal effectiveness and productivity. 

This, in turn, facilitates the attainment of both individual and organizational objectives 

with maximum efficiency. So, in conclusion, training using modern technology such as 

extended reality will increase organizational performance  

Extended reality through training will allow people to design and assign tasks (Mulders 

et al., 2022), helps reduce errors during training (Papanikolaou et al., 2019), provides a 

large amount of information, is easy to use, gives appropriate evaluation to trainees, and 

helps support decision-making related to the training process (Fracaro et al., 2021). 

 

 



22 

 

2.5.3 Organizational Performance 

Organizational performance is affected by many factors, including training (Anwar & 

Abdullah, 2021), and is also affected by the quality of trainees or employees (Atmaja et 

al., 2023). 

Organizational performance is the outcome of all operations carried out by the 

organization, and it is a reflection of how the organization uses and invests its resources 

in a way that makes it able to achieve its goals. Organizational performance can be 

divided according to the criterion of inclusiveness into: 

1. Overall performance: It is embodied in the achievements that all the functions and sub-

systems of the organization contributed to achieving without a single part or element 

of a unit achieving them. Through overall performance, it is possible to judge the 

extent to which the organization has achieved its general goals, such as continuity, 

growth, and profitability (Yang et al., 2023). 

2. Partial Performance: It means the performance that is achieved at the level of the sub-

systems of the organization and its basic functions, as each sub-system seeks to achieve 

its own goals, not the goals of other systems (Yang et al., 2023).  

Technology helps to develop human resources in the organization and enables employees 

to cooperate, work together, and hold meetings. It also provides informal learning 

opportunities for individuals, groups, and organizations, as well as some learning needs 

in the organization. It also works to facilitate obtaining feedback and solving some 

problems (Khandelwal & Upadhyay, 2021). 

2.5.4 Industrial –Academic Partnership 

A partnership can be successful if it is well planned and beneficial to both academic and 

industrial organizations (Rast et al., 2015). This can therefore lead to better organizational 

performance in the long run. Both parties can benefit from this partnership. 

Industrial academic partnerships contribute to enhancing cooperation and innovation 

between the public and private sectors, which leads to economic and social benefits for 

both parties. Partnerships with companies provide opportunities to fund research that 

academic institutions may not be able to finance through their internal resources. These 

partnerships also allow universities to access resources and facilities that may not be 



23 

 

available to them, such as advanced equipment or specialised research laboratories. In 

addition, partnerships with companies can contribute to improving learning opportunities 

for students through internal training programmes, research, and collaborative 

opportunities. Industrial academic partnerships also help faculty members develop their 

research skills and update their knowledge about the latest developments in industrial 

fields. In addition, they promote entrepreneurship in universities through business 

incubation programmes and investment opportunities. 

Just as industrial academic partnerships have an important role in academic institutions, 

they also have a similar role in industrial institutions, where partnerships with universities 

provide companies with access to specialised knowledge and expertise in certain fields, 

such as extended reality. It can also help companies develop new products and services 

through collaborative research and development. It also improves their operations by 

applying the latest technologies and innovations, in addition to acquiring talent through 

employment programmes and internship opportunities. Partnerships with universities also 

help companies improve their public image by demonstrating their commitment to 

innovation and social responsibility. 

So, the academic sector should understand the needs of the industrial private sector and 

harness all education and learning inputs for students, curricula, academic researchers, 

and resources to achieve high productivity, which means high added value, continuous 

improvement, embedded sustainability, and adapting organizations to using new types of 

technology (Lokuge et al., 2019). 

The extended reality technology, through partnerships, also provides training at a lower 

price compared to regular courses. Also, extended reality through partnerships provides 

lessons on the detailed parts of machines or buildings, for example (Hernández-de-

Menéndez et al., 2019).  

In addition, the partnership increases the confidence of the workers because they will 

experience the systems without material or physical losses through the extended reality 

technology. The academic-industrial partnership opens new horizons for education 

through extended reality technology.  

The academic-industrial partnership helps solve the problems of institutions that do not 

rely on research and provides training at a lower price compared to regular courses 



24 

 

(Delgado et al., 2020; Hernández-de-Menéndez et al., 2019). The partnership also 

increases the confidence of workers because they will experience the systems without 

material or physical losses through extended reality technology. It also opens new 

horizons for teaching and learning (Zhang et al., 2020; Lokuge et al., 2019).  

The success of industrial-academic partnerships and their impact on the performance of 

organizations is dependent on several factors (Lahiri & Kedia, 2009). These factors 

include the level of commitment from both parties, effective communication, goal 

alignment, and mutual trust. Both the academic institution and the industry that is 

involved can reap numerous benefits from a well-structured and fruitful partnership, 

which can ultimately lead to improved organizational performance (Zandkarimi et al., 

2020). 

2.5.5 Innovation Readiness 

Innovation is doing something different to meet a need or a gap in the market. It does not 

mean doing something different for the sake of difference only, but rather to address a 

defect, avert a shortage, enhance a service, add a feature to a product, or improve the work 

of a machine. In general, innovation involves creative thinking that escapes from the 

traditional point of view, and given the importance of innovations in the lives of nations, 

peoples, individuals, and institutions, many techniques and mechanisms have developed 

to help innovators complete the innovation process with great results, so innovation 

readiness could lead organizations to adapt to new technology (Lokuge et al., 2019). 

Industry-sector work with academia fosters a culture of innovation within the 

organization so that exposure to research and new ideas can inspire creative problem 

solving and the development of new solutions to challenges (Lokuge & Sedera, 2020). 

Innovative readiness is a systematic process used to determine whether an organisation is 

ready to implement innovation. It also aims to know the organisation's capabilities and 

resources necessary to support innovation within the organization. It can also be used to 

identify any gaps in the current capabilities of the organisation. 

Innovation readiness is defined as an organisation's or individual's ability to innovate. It 

also assesses whether they have the resources, processes, and culture to develop and 

launch new ideas (AlMalki & Durugbo, 2023). It considers several factors, including 



25 

 

leadership support for innovation initiatives, access to the necessary resources (financial, 

technological, and human), and encouraging a creative and adaptable work environment. 

Innovation readiness is different from innovation valance. The innovation valance 

examines the attitude towards innovation, often at the individual level, as well as the 

willingness to embrace new ideas. 

Innovation through this technology requires a large amount of material and human 

resources (Swanson, 1994; Swanson, 2011), and the exploitation of extended reality 

technology will encourage innovation in the enterprise. The exploitation of extended 

reality technology in innovation is also necessary to meet the challenges facing the 

enterprise (Lokuge & Sedera, 2020). 

2.5.6 Strategic Readiness 

One of the primary tools of administration, strategic management, helps organizations 

function better. A set of policies and practices adopted by leaders and management to 

steer the organization in a strategic direction and establish clear performance goals. 

Strategic management is an administrative approach that aims to identify the strengths 

and weaknesses of institutions, the challenges and opportunities they face, their vision for 

the future, and how they will seek to achieve that vision, all while taking into account the 

internal and external conditions that affect the performance of the organizations. 

Strategic planning analyses the organisation's strengths and weaknesses and determines 

whether or not it is prepared to reach its objectives, also examines external factors that 

might have an impact on the company and pushes organisational development and 

modernization forward. How well a company's strategy is planned, addressed, and laid 

out in proper ways that lead to solutions for critical business challenges is a major factor 

in the company's success. Strategic planning is a method that establishes particular goals 

and objectives that can be adjusted in response to shifting market dynamics; therefore, it 

stands to reason that an organisation's strategic planning should reflect this assumption. 

An organization that wants to meet the demands of its workforce and keep up with the 

ever-accelerating changes in its industry should prioritize educating its employees. 

In-service training is extremely helpful for workers because it teaches them new 

information and skills that are essential to their profession or shows them the best ways 



26 

 

to solve problems that arise while they are working in that profession. ambitious in its 

pursuit of success. 

The clarity of the strategy helps in achieving the objectives of the organization and helps 

it adapt to new technology  (Swanson, 1994; Swanson, 2011; Lokuge et al., 2019). Also, 

the continuous development of technology among its partners helps it be strategically 

prepared for all changes (Lokuge et al., 2019) . 

2.5.7 Resource Readiness 

The growth of the organization's business management, particularly in times when its 

duties grow as a direct result of the challenging effects of globalization and the 

intensification of competition with other businesses, an increase in the duties of human 

resources management as well as its development into multiple contexts, such as legal, 

economic, technological, and social, can be inferred from the existence of relationships 

and dependency links between employees and the firm. Therefore, for the organization to 

be successful, it must prepare to supply an adequate quantity of resources, which can take 

the form of either financial or human resources. 

Organizations that demonstrate a readiness to adapt are more inclined to allocate 

resources, encompassing both financial and human capital, to facilitate collaborative 

projects and initiatives with academic counterparts. This level of dedication enhances the 

likelihood of achieving favorable results. 

finance resource It is a term that refers to the funds available to the company to spend in 

the form of cash, liquid securities, and credit lines. The availability of financial resources 

is necessary for the company's ability to operate effectively and sufficiently to promote 

success (Lokuge et al., 2019). 

2.5.8 Organizations' readiness to adapt 

The ability to adapt arises as a result of the experimentation process that early-stage 

startups undertake. It is embedded in the cumulative knowledge and beliefs of individuals. 

But there is another approach that puts people first, namely through effective strategic 

planning. Accordingly, managers have an important role to play because of the choices 

they make that affect motivating employees to experiment in the early stages, which 

affects their ability to adapt more. 



27 

 

Organizations that display a high level of readiness to adapt become attractive partners 

for academic institutions and are thus more likely to engage in fruitful collaboration 

because they have the potential to implement and scale innovative ideas and projects.  

Highly adaptive organizations can implement and commercialize research results or 

prototypes emerging from the partnership with high efficiency, thus strengthening the 

partnership and encouraging further academic-industry collaboration. 

There are different tools that managers can use to guide the discovery process, which in 

turn leads to different levels of coping. They can hire employees with different skills; 

some people are more explorers than others. They can also participate in certain 

initiatives, such as incentive programs that promote the need for discovery. 

There is a strategic trade-off between managers because they cannot be certain about 

future forms of technological change. Therefore, managers must do their best to anticipate 

what the situation may be in the future and then find a balance between performance in 

the short term and the ability to adapt in the long term. 

The organization must enhance knowledge and awareness of new technology (Bughin et 

al., 2017; Pivik et al., 2002), and the organization must adopt modern technology in its 

work because its adoption will greatly develop the company  (Davis, 1989; Venkatesh & 

Davis, 2000).  

 

 

 

 

 

 

 

 



28 

 

Chapter Three 

Research Methodology 

This research will use a mixed research methodology, which combines questionnaires 

distributed to different segments of Palestinian society to examine the local market's 

readiness to adapt to extended reality technology, along with interviews with stakeholders 

such as teachers, managers, developers, and project owners. The mixed methods approach 

enables the comparison of survey and interview findings where If both methods point 

towards similar conclusions, it strengthens the overall validity and reliability of the 

research (Gilchrist, 1992).  Also, by combining both quantitative and qualitative data, we 

can paint a more complete picture of the Palestinian market's readiness for XR. 

This study will provide a comprehensive picture of the potential of extended reality to 

bridge geographic gaps and promote education and development within the Palestinian 

local market. 

3.1 Hypothesis 

This study aims to investigate the main factors affecting the Palestinian local market's 

adoption of extended reality technology. There are many constructs in research that affect 

organizational adoption. Based on the literature, four constructs were chosen, which are: 

innovation readiness, resource readiness, strategic readiness, and academic-industrial 

partnerships, with a focus on this variable to achieve the goals of the thesis. Based on the 

literature, one of the most important things affecting the academic-industrial partnership 

is organizational performance. Also, after researching the literature, it was found that 

what affects organizational performance is training, in addition to trainees or employees. 

So based on existing knowledge, conducting a literature review, and considering the 

specific context of the Palestinian local market, this research formulates the proposed 

model of readiness of the Palestinian local market to adapt to extended reality technology, 

as illustrated in Figure 3.1. 



29 

 

Figure 3.1 

Model of Readiness of the Palestinian Local Market to Adapt to Extended Reality Technology 

 

Based on the proposed model, which includes eight variables and 37 indicators taken 

from the previous literature, the following hypotheses were formulated: 

H1: There is no statistically significant positive effect of trainees on organizational 

performance. 

H2: There is no statistically significant effect of training on organizational performance. 

H3: There is no statistically significant association between organizational performance 

and the existence of an industrial-academic partnership. 

H4: There is no statistically significant effect of an industrial-academic partnership on the 

organization's readiness to adapt. 

H5: There is no statistically significant effect of innovation readiness on the organization's 

readiness to adapt. 

H6: There is no statistically significant effect of resource readiness on the organization's 

readiness to adapt. 

H7: There is no statistically significant effect of strategic readiness on the organization's 

readiness to adapt. 

3.2 Research Methodology Approach 

Research will use both quantitative and qualitative data to find out if the Palestinian 

market is ready to adopt extended reality (XR) technology through academic-industrial 

partnerships. The mixed approach will include both questionnaires and interviews. This 

will help the researcher answer the research questions accurately and gain a better 

understanding of the model's variables and relationships. 



30 

 

3.2.1 Quantitative Approach 

The quantitative approach involves the systematic collection and analysis of numerical 

data to examine the relationships between variables and test the proposed hypotheses, 

thus finding out whether the local Palestinian market is ready for extended reality (XR) 

technology through a partnership between the academic and industrial sectors. 

The first step in creating the questionnaire was to select a sample of participants from the 

local Palestinian market. Therefore, the researcher made the sample diverse and 

representative of various industries and academic institutions in Palestine. 

A comprehensive questionnaire was designed based on the variables previously described 

in the proposed model. The questionnaire consists of many types of questions, such as 

closed questions, multiple-choice questions, open questions, binary questions such as yes 

and no, and Likert scale items. Closed questions collect demographic information, while 

Likert scale items will assess respondents' perceptions, attitudes, and levels of agreement 

on a numerical scale (Appendix A). 

The questionnaire covers many aspects, such as general information about the institutions 

and whether they have previous experience with extended reality technology, their 

readiness to make industrial academic partnerships, organizational performance 

indicators, and various other dimensions such as innovation readiness, strategic readiness, 

and resource readiness. 

3.2.2 Qualitative Approach 

A qualitative approach involves a systematic and in-depth exploration of participants' 

perspectives, experiences, and opinions for a deeper understanding of the research topic. 

To find out how ready the Palestinian local market is for extended reality (XR) technology 

through an academic-industrial partnership, the qualitative approach will focus on 

interviews with key stakeholders and focus groups. 

Key stakeholders, such as representatives from academic institutions, industry leaders, 

policymakers, technology providers, and local businesses, will be intentionally selected 

for interviews. These individuals must have a significant role or experience related to XR 

technology adoption, industry-academic partnerships, or organizational readiness. 



31 

 

Interviews will be developed so that interview questions are consistent while allowing 

flexibility for open and exploratory discussions. Interview questions will be based on the 

research goals and variables described in the proposed model, including industrial-

academic partnerships, readiness to adopt XR technology, and factors affecting 

organizational adaptation. 

Interview questions will be designed to elicit detailed answers, explore participants' views 

and experiences, and find out the differences between companies in adopting XR 

technology and academic-industrial collaboration in the Palestinian local market. 

Based on the multiple objectives of the research, the interviews will be with many 

stakeholders, and to achieve each objective of the research, it was necessary to conduct 

interviews with different people, such as representatives from academic institutions and 

industries, educators, administrators, and students; leaders, managers, and employees; 

conduct focus group discussions or interviews with members of the community to assess 

their awareness and understanding of XR technology; and conduct interviews with 

businesses, consumers, and relevant stakeholders to identify barriers hindering XR 

adoption. 

The qualitative approach allows for a more holistic understanding of the complexities 

surrounding XR technology adoption in Palestine and can help inform policymakers, 

educators, industry leaders, and other stakeholders to promote the successful integration 

of XR technology in various sectors. 

3.3 The model operationalization 

The purpose of using an operationalization model is to translate summary theoretical 

ideas into measurable and observable variables, or signs. In essence, it includes defining 

and specifying a way to quantify a concept or assemble it so that it can be empirically 

tested or analyzed. 

The use of an operationalization version is important to make sure that studies are 

rigorous, replicable, and present meaningful insights into the relationships between 

variables. It is a vital step in the research procedure that bridges the space between 

theoretical principles and empirical observations. Appendix B shows the 

operationalization model. 



32 

 

3.4 Population of the study 

A stratified purposive sample was chosen in this research, as the focus was on the 

decision-making group in Palestinian institutions. The study population includes all types 

of companies and industries that work in the Palestinian local market. It also includes 

academic institutions, like universities, colleges, and research centres, that work on 

research and development related to extended reality technology or take part in academic-

industrial partnerships. There are 12,2057 operating institutions in Palestine until 2023, 

of which 13.1% are industrial activities and 27.2% are service activities, according to the 

Palestinian Central Bureau of Statistics (2024) in Palestine. 

3.5 Sample size 

For the proposed model, there were four exogenous variables, which are industrial 

academic partnership, innovation readiness, strategic readiness, and resource readiness, 

to explain organizations' readiness to adapt. And according to the sample size 

recommendation in PLS-SEM for a statistical power of 80%, as shown in Table 3.1, we 

need 65 observations at a significance level of 5% and a minimum R2 of at least 0.25. 

Due to the small sample size, Bootstrapping tests were used by taking 5000 subsamples 

to verify the validity and reliability of the measurement model. 

Table 3.1 

Sample size recommendation in PLS-SEM for a statistical power of 80%  

Number of 

Independent 

Variables 

Significance Level 

5% 

Minimum R2 

0.10 0.25 0.50 0.75 

2 110 52 33 26 

3 124 59 38 30 

4 137 65 42 33 

5 147 70 45 36 

6 157 75 48 39 

7 166 80 51 41 

Source: Hair Junior et al., 2014 

 



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3.6 Data collection  

The data collection for this research will involve various methods: 

1. Questionnaire: The researcher developed a structured questionnaire to collect 

quantitative data from several participants to examine the readiness of the Palestinian 

industries to adapt to an extended reality of technology. In addition, the researcher 

used Likert-scale questions to measure the attitudes and perceptions of the respondents 

towards XR technology and academic-industrial partnerships. 

2. Interviews: The researcher talked in-depth with people from industries, academic 

institutions, and consumers to reach a number of goals, such as showing how the 

partnership between academia and industry can help Palestinian institutions adapt to 

the technology of extended reality, finding out how important it is for educational 

institutions in Palestine to use extended reality, and figuring out how important it is 

for consumers to use Determine what the Palestinian local market has in terms of 

technological resources and infrastructure needed to support XR technology, identify 

barriers to XR adoption by businesses and consumers, and identify how to overcome 

these barriers. where Interviews provided valuable qualitative data and allowed 

researchers to explore challenges and expectations regarding XR technology 

adoption.  

3.7 Data Analysis 

The researcher used the Smart PLS programme version 4 to analyse the quantitative data 

because it is suitable for small sample sizes and easy to use, like shown in Table 3.1, 

compared with other software like AMOS and Mplus, which need at least 200 samples. 

Smart PLS also utilises bootstrap resampling to assess the significance of the relationships 

between constructs, thus providing more accurate results, especially with smaller sample 

sizes. 

The researcher imported the data from the questionnaire responses into SMART PLS and 

ensured that the data were structured appropriately and that each question was assigned 

to a corresponding construct. 

The researcher then built the measurement model by assigning reflective indicators to 

constructs. After this, for each reflective construct, the researcher checked the loadings, 

Cronbach's alpha, and Average Variance Extracted (AVE) to assess the reliability and 



34 

 

validity of the indicators. Then researcher removed any indicators with low loadings or 

inadequate validity. 

Also, the researcher analyzed the interview questions manually. Although there are 

qualitative analysis programs such as MAX QDA, this is faster and allows for a deeper 

exploration of the participant's perspectives and experiences, providing rich insights. 

The researcher used a mixed-methods approach because it will help provide a more 

comprehensive view of readiness of the Palestinian local market to adapt to the extended 

reality technology via academic-industrial partnership. 

 

 

 

 

 

 

 

 

 

 

 

 



35 

 

Chapter Four 

Research Results and Analysis  

4.1 Descriptive Statistics 

Descriptive statistics summarize and describe the main features of a data set, allowing all 

of its characteristics to be identified. These statistics help researchers understand the 

principal components, variables, distributions, and basic patterns of the data 

4.1.1 Descriptive statistics for questioner respondents 

After developing the questionnaire and sending it via email to numerous Palestinian 

institutions in Palestine, which encompassed the majority of the operational sectors, the 

response rate was surprisingly low, barely surpassing 15%. That is, during the research, 

more than five hundred questionnaires were distributed to obtain a sufficient number of 

responses as required in Table 3.1, and sometimes researcher communicated with some 

of these sectors directly. The researcher received 80 responses, and the results are 

displayed as follows in Tables 4.1 and 4.2. 

45% (n = 36) of the responses were from the southern cities in Palestine, 38.7% (n = 31) 

from the central cities, and 16.3% (n = 13) from the northern cities. The establishments 

whose ages in the labor market ranged from 0 to 5 years amounted to 27.5% (n = 22), the 

establishments whose ages ranged from 6 to 10 years were 15% (n = 12), and the 

establishments whose ages ranged from 11 to 20 years were 25% (n = 20), while the 

establishments that were older than 20 years were 32.5% (n = 26). As for the income of 

institutions, the institutions whose income is less than 20,000 JD constituted 28.75% (n 

= 23) of the institutions, and the institutions whose income ranged between 20,000 and 

100,000 amounted to 12.5% (n = 10), while the institutions whose income ranged between 

100,000 and 200,000 dinars were 13.75% (n = 11). The percentage of companies whose 

income ranges from 200,000 to 1,000,000 was 7.5% (n = 6), while many companies 

preferred not to answer this question, which amounted to 37.5% (n = 30). The 

questionnaire is filled out by a variety of institutions. Industrial facilities are present in 

8.8% (n = 7) of the institutes. The largest portion is made up of educational institutions, 

with 20 institutions representing 25% of the institutes and 17 engineering firms 

representing about 21.2%. Medical facilities represented 3.7% (n = 3) of all the instances. 

Also, Professional craft businesses represent 15% (n = 12) of instances, associations 



36 

 

account for 6.3% (n = 5), service institutions represent 5% (n = 4), and there are four 

commercial corporations, which together make up about 5% of the institutions. A total of 

three software companies represents about 3.75% of the institutes. In the entire sample, 

there is only one instance of a governmental institution present (1.25%). A single 

agricultural business exists, making up about 1.25% of the total. There is only one 

instance, 1.25% of the total, that is associated with the printing sector. A research and 

study institute only appears once in 1.25% of all instances. and one chamber of commerce 

and industry contributes about 1.25 percent of the total.  

A number of questions related to the academic-industrial partnership and the use of 

extended reality technology in the institutions have been added to the questionnaire. 

When asked whether they have an academic-industrial partnership, 60% answered yes 

and 40% answered no. When asked whether you have used extended reality before, 21.3% 

(n = 17) answered yes, and 78.7% (n = 63) said no. Later, a number of links from 

YouTube were added to the questionnaire (Appendix C). When they were asked if they 

were interested in extended reality technology after watching the videos, 76.25% (n = 61) 

of them responded yes, and 23.75% (n = 19) said no. Also, 48.75% (n = 39) of the 

institutions have expressed their desire to establish an academic-industrial partnership, 

and 51.25% (n = 41) of the institutions have not expressed their desire. 

This percentage (48.75%) is relatively small if compared with more developed countries. 

According to the Association of American Universities, 90% of American universities 

have at least one program of cooperation with industry. In a survey of Research 

Professionals for 2022 in Britain, 72% of British universities have active partnerships 

with industry. If you compare this percentage globally or in the Arab region, this 

percentage is excellent, as in a 2020 World Bank study, it was found that the average 

percentage of industrial academic partnerships in Arab countries is 6%, compared to a 

global average of 12%. At the Palestinian level, this percentage indicates progress in the 

work of industrial academic partnerships, as in a survey conducted by the Business 

Development Centre at Birzeit University in 2018 found that 36% of Palestinian 

companies have partnerships with educational institutions. 

Table 4.1 on the next page contains a summary of the descriptive results for the 

institutions to which the questionnaire was distributed. 



37 

 

Table 4.1 

Descriptive results part 1 

Item Group Respondents Percentage % 

Age 5 

0-5 Years 22 27.50% 

6-10 Years 12 15% 

11-20 Years 20 25% 

More Than 20 Years 26 32.50% 

Total 80 100% 

Location 

Northern Cities 13 16.30% 

Central Cities 31 38.70% 

Southern Cities 36 45% 

Total 80 100% 

Income 

0-20,000 23 28.75% 

20,001-100,000 10 12.50% 

100,001-200,000 11 13.75% 

200,001-1,000,000 6 7.50% 

People Preferred Not to Answer. 30 37.50% 

Total 80 100% 

Type 

Industrial Facility 7 8.80% 

Educational Institution 20 25% 

Engineering Companies 17 21.20% 

Medical Facility 3 3.70% 

Professional Craft 12 15% 

Association 5 6.30% 

Service Institution 4 5% 

Commercial Corporation 4 5% 

Software Company 3 3.75% 

Governmental Institution 1 1.25% 

Agricultural Company 1 1.25% 

Printing Industry 1 1.25% 

Research And Studies Institute 1 1.25% 

Chamber Of Commerce and Industry 1 1.25% 

Total 80 100% 

 

In Table 4.2, there are questions about organizations’ use of extended reality and about 

academic-industrial partnerships that would enhance the research results, in addition to 

interview questions. 



38 

 

Table 4.2 

Descriptive results part 2 

 Responses 
Number of 

respondents 
Percentage % 

Institutions that have 

partnerships with the 

academic sector 

Yes 48 60% 

No 32 40% 

Institutions used extended 

reality 

Yes 17 21.30% 

No 63 78.70% 

Institutions that showed 

interest in extended reality 

after getting acquainted with 

this technology (Appendix C) 

Yes 61 76.25% 

No 19 23.75% 

The desire to make an 

academic-industrial 

partnership 

Yes 39 48.75% 

No 41 51.25% 

 

4.2 Assessment of Measurement Model  

Based on Hair Jr. et al. 's (2021) validation guidelines, when evaluating a measurement 

model using PLS-SEM, one must focus on internal consistency, convergent validity, and 

discriminant validity to compare the theoretical measurement with the actual model, 

which means determining how well the theory fits with the data.  

Before evaluating the management model, it is necessary to determine if the construct of 

the proposed model is reflective or formative. As shown in Fig. 3.1, all constructs in the 

proposed model were reflective, which helps consolidate knowledge in extended reality 

and makes it more meaningful and applicable. 

 

 

 

 



39 

 

4.2.1 Internal Consistency Reliability 

The measurement model concentrates on assessing the strength of the relationship 

between the latent variables and the indicators used for their evaluation. External loadings 

measure this, and their value must be greater than 0.7 as shown in Fig. 4.1.  

Figure 4.1 

 Preliminary Results from The Model Analysis 

 

A factor load that is less than 0.40 needs to be immediately eliminated from the model 

Hair Jr et al., (2021) so T-1 and OP-6 indicators were removed from the model as shown 

in Fig. 4.2. 

Figure 4.2 

The Model Result After Eliminating Some Indicators 

 

To determine internal consistency and reliability for the proposed model, Cronbach’s 

alpha values are considered in general, but it suggests that the scale's indicators are all 



40 

 

equally weighted and Cronbach’s alpha depend on the total number of indicators used in 

the construct, so it is considered conservative (Hair Jr et al., 2021).  

To avoid this limitation, we will examine composite reliability (CR) values, which is a 

different internal consistency reliability measure that account for the various outer 

loadings of the indicator and provides more accurate reliability estimates than Cronbach's 

alpha (Henseler et al., 2009). However, in this research, we will take Cronbach's alpha 

and composite reliability values because these are more reasonable. 

The reliability indicator should be taken into consideration before attempting to determine 

the internal consistency and reliability of the PLS structural equation model through the 

evaluation of Cronbach's alpha and CR results.  

Cronbach's alpha values are desired to be between 0.7 and 0.9 (Urbach & Ahlemann, 2010), 

and the average variance extracted (AVE) value is desired to be greater than 0.5 (Bagozzi 

& Yi, 1988). If any of the factors affect the composite reliability (Cronbach's alpha, 

average variance extracted), its range of 0.40 and 0.70 should be removed, so that RR-3 

and SR-3 are removed because they affect Cronbach's alpha and AVE as shown in Fig. 

4.2. 

4.2.2  Convergent validity (AVE and Individual indicator reliability) 

The degree to which a measure exhibits a favorable correlation with additional measures 

of the same construct is referred to as convergent validity (Hair Jr et al., 2021). To assess 

the presence of convergent validity, the examination of individual indicator reliability 

(outer loadings), which was mentioned previously, and average variance extracted (AVE) 

values is undertaken, whose values must be greater than 0.5 as shown in Table 4.3. 

 

 

 



41 

 

Table 4.3 

Cronbach's alpha, composite reliability (CR) and average variance extracted 

 
Cronbach’s 

alpha 

Composite 

reliability  

Average variance 

extracted  

Industrial Academic Partnership 0.798 0.802 0.553 

Innovation Readiness 0.753 0.770 0.569 

Organizational Performance 0.829 0.836 0.594 

Organizations readiness to adapt 0.699 0.725 0.624 

Resource Readiness 0.749 0.753 0.799 

Strategic readiness 0.816 0.820 0.844 

Trainees 0.867 0.871 0.601 

Training 0.854 0.855 0.579 

 

These measures helped the researcher ensure the strength and accuracy of the 

measurements, which will ultimately support the validity and credibility of the research 

results. 

4.2.3 Discriminant validity  

Each construct in the model must be substantively distinct from all others in order to 

satisfy the discriminant validity requirement. Therefore, it must be taken into 

consideration that a phenomenon that is measured by a specific construct shouldn’t be 

measured by another construct (Hair Jr et al., 2021). 

There are many approaches for measuring discriminant validity; one of the most common 

is the Fornell-Larcker criterion; there is a cross-loading approach; and there is a new 

approach, which is the heterotrait-monotrait ratio (HTMT). 

In Fornell-Larcker criterion the variance between a construct and its indicators must be 

greater than the variance between the same indicators and any other construct in the model 

(Urbach & Ahlemann, 2010). So, the diagonal factors (bold) in Table 4.4, which represent 

the square root of AVE for each construct, showed that the desired outcome was achieved. 

Diagonal factors also indicate that the variance between the construct and its indicators is 

greater than the rest of the constructs. 



42 

 

Table 4.4 

Fornell-Larcker Criterion results 

 IAP IR OP OR RR SR T TR 

IAP 0.744        

IR 0.475 0.754       

OP 0.710 0.368 0.771      

OR 0.615 0.431 0.457 0.790     

RR 0.634 0.519 0.510 0.624 0.894    

SR 0.620 0.542 0.604 0.479 0.691 0.919   

T 0.687 0.474 0.767 0.381 0.521 0.642 0.755  

TR 0.566 0.458 0.723 0.342 0.392 0.596 0.718 0.716 
 

In addition to the Fornell-Larcker criterion, the heterotrait-monotrait ratio (HTMT) is also 

a common method to assess discriminant validity and can eliminate deficiencies in the 

Fornell-Larcker criterion because the sensitivity of the Fornell-Larcker criterion is 

20.82%, but HTMT is 97% to 99% (Ab Hamid et al., 2017). 

‘The HTMT is an estimate for the factor correlation (more precisely, an upper boundary), 

(Henseler et al