The relationship between business models and the performance of active companies in the industrial towns of Gilan province

Academic thesis for obtaining a master's degree, field: business management, orientation: internal

Abstract:

Management research emphasizes the importance of the role of business models in improving organizational performance. In recent years, we have seen the business field become more competitive in various industries. According to business researchers, achieving a suitable competitive position for a company is only possible with the help of a suitable business model. A successful business model represents a better way than existing options that can offer more value to a specific group of customers and return more benefits to the company. Since very few theoretical and empirical studies have been conducted in the field of factors affecting the performance of companies in the manufacturing industry sector, in the present research, the relationship between innovation-oriented and efficiency-oriented business patterns and company performance has been investigated in companies active in the food and metal industries. The data were collected through a questionnaire from 151 companies active in the food and metal industries in the industrial towns of Gilan province. The research method used in this research is Pearson's correlation coefficient. The results of the research show that innovation-oriented and efficiency-oriented business models have a significant relationship with the company's performance, and it seems that in this regard, the change in the business model affects the performance to a high degree. Keywords: company performance, innovation-oriented business model, efficiency-oriented business model.  In the definition provided by Hu [2] (2008), the performance of the organization is an indicator to measure how the goals of the organization or institution are realized. Organizational performance [3] is considered one of the most important topics in management research. Most managers and organizational leaders seek to improve the performance of their organizations. Organizational performance is a complex phenomenon, for which perhaps the simplest interpretation can be considered as the set of activities related to achieving the organization's goals. In this way, the performance of organizations should be measured according to appropriate indicators. The indicators of employee satisfaction, customer satisfaction, efficiency, effectiveness of the organization and financial and market results are examples of performance indicators (Akbari, 2012, p. 68). An organization with a superior performance is an organization that achieves better results than comparable organizations in a long-term period of time through the ability to choose instructions appropriate to changes and quick response, create a coherent and purposeful management structure, continuously improve key capabilities, and treat employees as the main asset (Isa Khani, 2015, p. 25). Of course, organizations need to plan and implement structured programs in order to excel and improve their performance.  In other words, in order to cope with the turbulent world around them, organizations need a mechanism to direct their movement and guide them in the direction of the organization's vision.

Innovative business model [4] and efficiency-oriented [5] can improve the performance of the organization (Bertel, 2012, p. 87). Innovation is a conceptual process that has many definitions and its value is often neglected. Many business experts think that innovation is something that happens when a person is inspired. Others think that innovation requires a set of special skills and is available to a few people. Now, innovation is a process that everyone in an organization can understand. Innovation can and should occur at any organizational level. Today, organizations must understand the importance of innovation. If any of the factors and conditions for achieving the desired state are not found correctly or if one of the obstacles occurs, the desired result of the desired work will not be obtained (Isa Khani, 2015, p. 28). Efficiency is a quantitative concept and basically refers to the level of customer satisfaction or the level of achieving desired goals. Efficiency is actually a ratio that compares some aspects of units' performance with the costs incurred to perform that performance.  Efficiency means the least amount of time or energy consumed for the most work done. The level of efficiency increase is directly entrusted to the managers. Increasing efficiency will improve productivity and effectively help in achieving organizational goals (Abtahi, 1375, p. 22).The efficiency-oriented business model facilitates transaction conditions and reduces costs and makes the transaction transparent for partners. The innovation-oriented business model leads to the superiority of the first initiative through the acquisition of assets and the creation of variable buyer costs. If a company can use the innovation-oriented business model before its other competitors, it can attract new customers and become famous in the market (Bertel, 2012, p. 88).

) Statement of the problem

Companies are always in search of improving market share, increasing profits, and achieving a competitive advantage over their competitors. To achieve these goals, it is very important to pay attention to efficiency and effectiveness (productivity) as well as performance in any organization. As organizations increasingly turn to the use of new technologies and communication networks, they find ways to use information, provide better services and their production. These capabilities will lead to more effectiveness and profitability of the organization. At a glance, organizational performance indicates the extent to which the organization achieves market and financial goals (Rajabzadeh et al., 2019, p. 59). Many mistakenly believe that performance is the profitability of the organization.  The fact is that the performance of the company is evaluated depending on the type of organization, management thinking, existential philosophy and mission of the organization, environmental conditions and countless other things. Therefore, several indicators and criteria are used for this purpose (Kafashpour, 2018, p. 117).  Understanding the scientific concept of performance in this field is very important. Ho (2011) believes that organizational performance is a set of actions that enable the optimal use of resources and facilities to achieve goals in an economical and efficient manner. In this regard, metal and food industry companies of the statistical population of the research are studied. Companies that, despite having many facilities, still do not have the necessary speed and innovation in providing services and goods. This case becomes more serious when the managers of these companies know that, despite their activities, they must be accountable to their customers not only at the provincial level but also at the national level. Examining the performance results in the country's manufacturing companies has shown that, although performance and its results are important for managers, independent evaluation studies consider the performance variable in these companies problematic (Rahimi, 2015, p. 41).     

Roll Studs [6] (1998) states that the performance of the company is caused by the relationship of seven indicators, which are: Effectiveness: doing the right work at the right time - Efficiency: is related to the transformation process - Quality: represents a broader concept and includes supplier systems, input resources, transformation process, actual production and quality systems received by the customer - Productivity: the ratio between input and output flows is productivity - Work environment: the environment in which the organization It operates and is influenced by it and affects it - Innovation capacity: This capacity is a key element to ensure long-term competitiveness - Profitability: The optimal goal of business is profitability. Superior performance in the field of competition requires the effective combination of all internal elements of the organization. This combination enables the organization to adapt to rapidly changing customer preferences and dynamic market factors. Hamberg et al. [7] (1999) consider various aspects of performance measurement including profitability, market share, customer satisfaction and adaptability.  The results of various researches show that companies that are able to recognize market share and sales growth and improve their market profitability can achieve higher performance (Hajipour, 2011, p. 66). Company performance is a central phenomenon in business studies. However, it is also considered a complex and multidimensional phenomenon. Performance can be seen as a specification of the company's ability to create acceptable results and actions (Qarakhani, 2013, p. 37). In this research, the performance has been examined from 2 financial and market dimensions. Market performance focuses on two indicators of customer retention and new customer attraction, and financial performance focuses on market share and sales growth. Among the factors related to the company's performance are business models, which are studied in the current research from two dimensions: the innovation-oriented business model and the efficiency-oriented business model (Bertel [8], 2012, p. 87).