Study and Standardization of Factors Affecting Decision-Making in Small Industries Investment
Subject Areas :
1 - Department of Management, Comprehensive University of Applied Sciences, Ardabil Branch, Ardabil. Iran
Keywords: Investment decision-making small industries confirmatory factor analysis economic and behavioral factors ,
Abstract :
Investment in small industries constitutes a critical pillar for national economic development and employment generation. This study aims to examine and standardize the factors influencing investment decision-making within small industries. Employing a descriptive-analytical research design and utilizing confirmatory factor analysis (CFA), data were collected from a sample of 280 investors in small industries through a standardized questionnaire. The CFA results identified four primary factors—market conditions, environmental pressure and competition (influx), human capital knowledge and skills, and macroeconomic conditions—that significantly impact investment decisions. Furthermore, the model fit indices demonstrated satisfactory validity and consistency of the proposed factor structure with the observed data. The findings underscore the importance of enhancing market accessibility, reinforcing infrastructural capabilities, advancing the financial literacy and managerial competencies of decision-makers, and establishing economic stability as essential strategies to augment motivation and improve the quality of investment decisions in this sector. Additionally, networking and effective information dissemination were highlighted as key facilitators strengthening investors’ decision-making processes. This study offers a practical and scientific framework that can assist managers, policymakers, and investors in small industries to optimize investment decision-making, thereby contributing to sustainable growth and increased competitiveness in the broader economic context.
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