Investigating factors affecting the rice export of Gilan province based on Porter's diamond model

Academic Thesis for Master's Degree in Business Management

Abstract

The main purpose of this research is to investigate the effect of identified factors on the rice export of Gilan province in 2011-2012. For this purpose, considering that the theoretical structure of this research is designed based on Porter's diamond model, it has been tried to perform the results and analyzes in such a way that practical concepts can be extracted from the results of factor analysis. The diamond model was presented and published by Porter in 1990 in the book Competitive Advantages of Nations to evaluate the competitive advantages of 10 countries. In the following years, criticisms and suggestions were raised about it. These proposals led to the presentation of double diamond models, multiple diamonds, Dunning model, 9 factor model and double diamond model. The factors of this model include; 1. Domestic demand conditions 2. Related and supporting factors 3. Strategy, structure and competition 4. Government role 5. Chance (unforeseen events), 6. Internal factors which are all influential factors. This research is applied in terms of its importance and goals, and descriptive-survey in terms of data collection. Its statistical community is all the experts, managers and those involved in the rice export of Gilan province. After preparing the questionnaire and checking its validity-reliability, the raw data obtained from the collection of 181 questionnaires were tested by LISREL and SPSS software. In the final ranking, the results indicate the importance of the factors "government role", "related and supporting industries", "luck or unforeseen events" in the first three positions, and the other factors are "internal factors", "internal demand conditions" and finally "strategy, competition and structure". According to the results obtained and the importance of the export of the agricultural sector, at the end, suggestions are presented to improve the rice export situation of Gilan province.

Key words: competitiveness, rice export, Almas Porter model, Gilan province.

Introduction

The process of globalization, the emergence of the World Trade Organization and the integration of world markets, rapid changes in consumption and demand patterns, rapid technological advances, conservation of energy resources, environmental pollution control, lack of resources and high costs. They are the challenges faced by various companies and industries at this point in time, which inevitably try to identify factors affecting competitiveness and strengthen them in order to survive.  In today's era, with the rapid advancement of technology and the existence of tight global competition, dynamic and dynamic short-term programs are considered as a fundamental advantage in the growth and development of any country. In this regard, one of the most important axes of the economic sector is achieving the first economic, scientific and technological position in the region, improving the quality of production, acquiring technology and promoting new technologies, attracting foreign investments and so on. is Therefore, in order to achieve sustainable development, the synchronized development of sectors and regions in the whole country is inevitable. The geography of the country is completely diverse in terms of climate and regional life, and therefore the need to investigate different regions of the country independently is inevitable. Considering the existing potentials in the northern parts of the country, including Gilan province, developing a codified plan within the province with a holistic view in this province is one of the tools for the development of the province and as a result of the country.  On the other hand, the optimal growth and development of agricultural products and the increase in the export of these products have made it possible to increase the standard of living of the people in different dimensions. Therefore, today the agricultural sector has become a leading sector in the economy compared to other economically productive sectors. The increase in the share of industry and the production of factory products in the society, the increase in the share of employment in the industry sector, the industrialization of the agricultural sector, the increase in the share of the service sector and the share of employment in this sector, and finally, the significant increase in the added value of the industry sector in the gross domestic product, along with many developments and significant changes in the political, social and cultural fields, are all considered among the most significant achievements of the industrial development strategy with a partial view of attention to agricultural products. On the other hand, as mentioned in the previous lines, one of the most important aspects of the growth of any country is having a competitive advantage in the world markets. is Creating such an advantage is not possible except by developing and empowering the existing sub-sectors. Therefore, Porter's diamond model was discussed in this research. This model deals with the issue of competitive advantage and is useful for a better understanding of the competitive position of a nation in the global competitive environment, and it can also be used for other geographical positions such as provinces.. Therefore, this research has evaluated the diamond model as a holistic model of the export of agricultural products - rice with a regional perspective and tries to identify effective factors from a different perspective.

Statement of the research problem

Exports are: "The sale or external supply of goods and services of a country to other countries in exchange for receiving goods, services, currency, gold, settlement of debts for the purpose of grants, repair, completion or participation in Exhibitions. Countries allocate their domestic resources to exports because through international exchanges, they receive more goods and services than the direct allocation of the same resources to domestic production (Hosni, 2016). One of the most important reasons for exporting goods is to improve the quality of manufactured goods, produce on an economic scale, increase the level of employment, provide foreign exchange income and, as a result, economic growth and development. Exports are the most common way to enter international markets, and the development of exports leads to an increase in foreign exchange earnings, increasing the country's level of expertise, creating a standard of living, and preparing a suitable platform for new investments. On the other hand, the development of non-oil exports covers the failure of oil exports, such as oil price fluctuations, the exhaustion of these resources, and population growth. In addition, ending dependence on oil revenues depends on finding potential talents and using them properly. On the other hand, export development is not possible without identifying competitive advantage. Philip Selznick was the first person to use the term "competitive advantage" [1] in 1957. Competitive advantage is a set of unique abilities of an economic unit that allows it to penetrate the desired markets and provide superiority over competitors. Historically, there have been different approaches related to the competitive advantages of nations. In 1990, the scientists' view of the competitive advantage of nations changed to the presentation of the diamond model by Porter, a professor at Harvard Business University. For the first time, Porter presented a model to evaluate the competitive advantages of nations. He studied the commercial performance of 10 countries for 4 years in order to investigate how to gain the competitive advantage of nations in various industries and apply the strategy of factories for national economies in a government project. The factors of the diamond model are a self-stimulating and interactive system and create an environment where innovation in the country is repeated quickly and regularly and each sector affects the other sector.  Porter's hierarchical view of factors within the diamond includes resources, industries, demand, competition and government (Porter, 1990). Porter states that there is an equality in the present age and nations are similar, and that is the capacities of nations (Dong-Sung Cho, 2007). Due to the importance of the subject of Porter's research and the model he presented, diamonds received worldwide attention. Diamond consists of 4 interrelated internal components which are 1. internal factors 2. internal demand conditions 3. related and coordinating industries 4. strategy, structure and competition and two external parameters: government and luck (Chang Moon, 1998). On the other hand, Porter also points out that the difference between nations in national values, culture, economic structures, institutions and history plays a significant role in competitive success. In other words, there are outstanding differences in the competitiveness patterns of countries: no nation can compete in all areas and industries (Porter, 1990). Based on this, the diamond model is useful for a better understanding of the competitive position of a nation in the global competitive environment, and it can also be used for other geographical positions such as provinces.

The importance and necessity of conducting research

Given that the country's geography is quite diverse in terms of climate and regional life, and the need to independently examine different regions of the country is inevitable, as well as the potentials in the northern parts of the country, including Gilan province. A province with a holistic view in this province is one of the tools for the development of Gilan province and as a result of the country.  On the other hand, the issue of competitiveness is one of the most important concerns of business and activity in today's dynamic and competitive environment. A theory that can answer most of the above needs and conditions is Michael Porter's "diamond national competitive advantage" model.