Presenting a sustainable market framework for electronic business and rural products (REB) using PESTEL and ISM methods (Case study: Semnan province )
Subject Areas : Environmental EconomicsMohammad Mehdi Karimi 1 , Rasoul Sanavifard 2 , Aliasghar Eyvazi 3 , Mostafa Khajeh 4
1 - P.h.D Candidate, Department of industrial Management, Qom Branch, Islamic Azad University, Qom, Iran.
2 - Associate Professor, Department of Business Management, Qom Branch, Islamic Azad University, Qom, Iran. * (Corresponding Author)
3 - Assistant Professor, Department of Management, Payame Noor University, Tehran, Iran.
4 - Associate Professor, Department of Business Management, Qom Branch, Islamic Azad University, Qom, Iran.
Keywords: Rural Electronic Business, Rural Product Market, PESTEL Method, ISM Technique. ,
Abstract :
Background and Objective: This research was conducted with the aim of providing a framework for sustainable market and rural electronic business (REB) in Semnan province. Material and Methodology: The research method of the present study is a survey-interpretation in which data were collected using a questionnaire and its analysis was performed using SPSS and excel and MICMAC software. The statistical population of the study included 10 producers of agricultural and livestock products as well as experts in the field of rural businesses. For this purpose, first, by reviewing previous studies, a set of factors affecting rural e-businesses were collected and then the factors were categorized by PESTEL method. Findings: The results showed that the legal factor is the most important underlying factor in achieving the design of rural e-business framework. Economic, political and technological factors are in the next rank and are related factors. Environmental and social factors are dependent factors. Discussion and Conclusion: According to the more effective role of the legal factors in developing rural E-commerce marketplace and the emphasis of the researchers on the role of governments in law enactment and law implementation in developing E-commerce, it can be expected that the governments help to the stability of the rural E-commerce through enacting laws proportionate to the country's business environment.
1. Schallbruch, M., Schweitzer, H., & Wambach, A. (2019). A new competition framework for the digital economy. The Antitrust Chronicle, 3(2), 33-38.
2. Mohammadian, A. (2017).Electronic Commerce Business Models Implementation: A Holistic and System Approach, Tehran, Adibane Rooz pub. (In Persian)
3. Xia, H., He, T., Li, F., & Long, J. (2017). A Framework of Rural E-commerce in Context of Big Data in China. In Wuhan International Conference on e-Business, Association For Information Systems. WHICEB 2017 Proceedings. 52.
4. Zeng, Y., Jia, F., Wan, L., & Guo, H. (2017). E-commerce in agri-food sector: a systematic literature review, International Food and Agribusiness Management Review, 20(4): 439-459. https://doi.org/10.22434/IFAMR2016.0156
5. Movahedi, R. (2015). Starting- up Agricultural E-Businesses, Journal of Entrepreneurship in Agriculture, 2(3): 23-42. (In Persian)
6. Safari Ali Akbari, M., Manouchehri, F., Sadeghi, H. (2018). Analysis of the use of online stores to Supply of rural products, Spatial Planning, 8(1): 89-110. (In Persian)
7. Raju, C. (2016). A study on Technological impact on rural markets in India, International Journal of Research and Development - A Management Review, 5(3): 80-84.
8. Ismaili Aval, M., Mahboobi, M.R., Shahbazi, E. & Karami Dehkordi, E. (2014). Internet Marketing and Agricultural Web-Services; step to entrepreneurship in agriculture, Journal of Entrepreneurship in Agriculture, 1(2): 31-42. (In Persian)
9. Zapata, S. D., Isengildina-Massa, O., Carpio, C. E., & Lamie, R. D. (2016). Does E-Commerce Help Farmers’ Markets? Measuring the Impact of MarketMaker, Journal of Food Distribution Research, 47(2): 1-18. https://doi.org/10.22004/ag.econ.240766
10. Mohammadi, R., Lashgarara, F., Omidi Najafabadi, M., & Dinpanah, R. (2018). Designing Model of Using Information and Communication Technologies in Rural Marketing Mix of Garmsar County, Iran. Journal of Agricultural Science and Technology, 20(3): 435-443.
11. Asadihkoob, H. & Ebrahimi, M. S. (2014). Challenges and strategies of e-commerce in iran’s agriculture. Agricultural Communications, 2(1): 80-88.
12. Zhao, G. (2018). On the Rural E-commerce Synergy Distribution System: Strategic Alliance, Basic Structure and Main Functions. Advances in Economics, Business and Management Research, 56: 206-210.
13. Fahey, L. & Narayanan V.K. (1986). Macro Environmental Analysis for Strategic Management (The West Series in Strategic Management). St. Paul, MN: West Publishing Company.
14. Song, J., Sun, Y. & Jiu, L. (2017). PESTEL analysis of the development of the waste-to-energy incineration industry in China, Renewable and Sustainable Energy Reviews, 80: 276-289. https://doi.org/10.1016/j.rser.2017.05.066
15. Kremer, P.D. & Symmons, M.A. (2015). Mass timber construction as an alternative to concrete and steel in the Australia building industry: a PESTEL evaluation of the potential, International Wood Products Journal, 6(3): 138–147. https://doi.org/10.1179/2042645315Y.0000000010
16. Sandberg, A.B., Klementsen, E., Muller, G., De Andres, A. & Maillet, J. (2016). Critical Factors Influencing Viability of Wave Energy Converters in Off-Grid Luxury Resorts and Small Utilities, Sustainability, 8: 1-22. https://doi.org/10.3390/su8121274
17. Stuiver, M., Soma, K., Koundouri, P., van den Burg, S., Gerritsen, A., Harkamp, T., Dalsgaard, N., 857 Zagonari, F., Guanche, R., Schouten, J. J., Hommes, S., Giannouli, A., Söderqvist, T., Rosen, L., 858 Garção, R., Norrman, J., Röckmann, C., de Bel, M., Zanuttigh, B., Petersen, O., and Møhlenberg, F. (2016). The governance of Multi-Use Platforms at Sea for energy production and aquaculture: challenges for policy makers in European seas, Sustainability, 8(4): 1-19. https://doi.org/10.3390/su8040333
18. Lynch, R.L. (2009) Strategic Management, Prentice Hall / Financial Times, 5. ed., Harlow, England.
19. Attri, R., Grover, S., Dev, N., & Kumar, D. (2013). An ISM approach for modelling the enablers in the implementation of Total Productive Maintenance (TPM), International Journal of System Assurance Engineering and Management, 4: 313-326. https://DOI:10.1007/s13198-012-0088-7
20. Georgakopoulos, A. (2009). Teacher effectiveness examined as a system: interpretive modelling and facilitation sessions with U.S. and Japanese students, International Education Studies, 2(3): 60–76. https://DOI:10.5539/ies.v2n3p60
21. Warfield, J.W. (1974). Developing interconnected matrices in structural modelling. in IEEE Transactions on Systems, Man, and Cybernetics, 4(1): 51–81. https://doi: 10.1109/TSMC.1974.5408524.
22. Sage, A.P. (1977). Interpretive structural modeling: methodology for large scale systems. McGraw-Hill, New York.
23. Raj, T., Shankar, R. Suhaib, M. (2008) An ISM approach for modelling the enablers of flexible manufacturing system: the case for India, International Journal of Production Research, 46 (24): 6883-6912. https://DOI: 10.1080/00207540701429926
24. Singh, M.D., Shankar, R., Narain, R. and Agarwal, A. (2003). An interpretive structural modeling ofknowledge management in engineering students, Journal of Advances in Management Research, 1(1): 28-40. https://doi.org/10.1108/97279810380000356
25. Ravi, V. & Shankar, R. (2005). Analysis of interactions among the barriers of reverse logistics, Technological Forecasting and Social Change,72: 1011–1029. https://doi.org/10.1016/j.techfore.2004.07.002
26. Azevado, S., Carvalho, H., & Cruz-Machado, V. (2013). Using Interpretive Structural Modelling to Identify and Rank Performance Measures: An Application in the Automotive Supply Chain, Baltic Journal of Management, 8(2): 208-230. https://doi.org/10.1108/17465261311310027
27. Jharkharia, S. & Shankar, .R. (2005). IT-enablement of supply chains: understanding the barriers. Journal of Enterprise Information Management, 18(1): 11–27. https://doi.org/10.1108/17410390510571466
28. Khaki, G. (1999). Research method with a viewpoint to thesis writing, first Ed., Tehran, Scientific Research Institute and Derayat pub. (In Persian)
29. Turner, B. (1983). The use of grounded theory for the qualitative analysis of organizational behaviour, Journal of Management Studies, 20: 333-348. https://doi.org/10.1111/j.1467-6486.1983.tb00211.x
30. Alavion, S. J., & Taghdisi, A. (2020). Rural E-marketing in Iran; Modeling villagers' intention and clustering rural regions. Information Processing in Agriculture. 8: 105-133. https://doi.org/10.1016/j.inpa.2020.02.008
31. Huang, L., Yang, W., Zou, C., Huang, X., & Zhao, W. (2015). E-commerce innovative development in rural China. WHICEB 2015 Proceedings, 16.
32. Li, B., Yin, Z., Ding, J., Xu, S., Zhang, B., Ma, Y., & Zhang, L. (2020). Key influencing factors of consumers’ vegetable e-commerce adoption willingness, behavior, and willingness-behavior consistency in Beijing. China. British Food Journal, 122(12), 3741-3756. https://doi.org/10.1108/BFJ-11-2019-0834
33. Liu, Y., Ma, W., Renwick, A., & Fu, X. (2019). The role of agricultural cooperatives in serving as a marketing channel: evidence from low-income regions of Sichuan province in China, International Food and Agribusiness Management Review, 22(2): 265-282. https://doi.org/10.22434/IFAMR2018.0058
34. Ma, W., & Wang, X. (2020). Internet use, sustainable agricultural practices and rural incomes: evidence from China. Australian Journal of Agricultural and Resource Economics, 64(4), 1087-1112. https://doi.org/10.1111/1467-8489.12390
35. Zhang, S., Sun, Z., Ma, W., & Valentinov, V. (2020). The effect of cooperative membership on agricultural technology adoption in Sichuan, China. China Economic Review, 62, 101334. https://doi.org/10.1016/j.chieco.2019.101334
36. Markelova, H., Meinzen-Dick, R., Hellin, J., Dohrn, S., 2009. Collective action for smallholder market access. Food Policy, 34(1): 1–7. https://doi.org/10.1016/j.foodpol.2008.10.001
37. Li, X., Guo, H., Jin, S., Ma, W., & Zeng, Y. (2021). Do farmers gain internet dividends from E-commerce adoption? Evidence from China. Food Policy, 102024. https://doi.org/10.1016/j.foodpol.2021.102024
38. Hamad, H., Elbeltagi, I., & El‐Gohary, H. (2018). An empirical investigation of business‐to‐business e‐commerce adoption and its impact on SMEs competitive advantage: The case of Egyptian manufacturing SMEs. Strategic Change, 27(3): 209-229.
39. Jamaluddin, N. (2013). Adoption of e-commerce practices among the indian farmers, a survey of Trichy District in the State of Tamilnadu, India. Procedia economics and finance, 7: 140-149. https://doi.org/10.1016/S2212-5671(13)00228-1
40. Ma, W., Zhou, X., & Liu, M. (2020). What drives farmers’ willingness to adopt e‐commerce in rural China? The role of Internet use. Agribusiness, 36(1): 159-163. https://doi.org/10.1002/agr.21624
41. Okoli, C., Mbarika, V. W., & McCoy, S. (2010). The effects of infrastructure and policy on e-business in Latin America and Sub-Saharan Africa. European Journal of Information Systems, 19(1): 5-20. https://doi.org/10.1057/ejis.2009.48
42. Rahayu, R., & Day, J. (2017). E-commerce adoption by SMEs in developing countries: evidence from Indonesia. Eurasian Business Review, 7(1): 25-41. https://doi.org/10.1007/s40821-016-0044-6
43. Yu, H., & Cui, L. (2019). China's e-commerce: empowering rural women?. The China Quarterly, 238, 418-437. https://doi.org/10.1017/S0305741018001819
44. Cristobal-Fransi, E., Montegut-Salla, Y., Ferrer-Rosell, B., & Daries, N. (2020). Rural cooperatives in the digital age: An analysis of the Internet presence and degree of maturity of agri-food cooperatives'e-commerce. Journal of Rural Studies, 74: 55-66. https://doi.org/10.1016/j.jrurstud.2019.11.011
45. Luo, X., & Niu, C. (2019). E-Commerce participation and household income growth in Taobao Villages. World Bank Policy Research Working Paper, 8811. http://hdl.handle.net/10986/31540
46. Zhang, Y., Long, H., Ma, L., Tu, S., Li, Y., & Ge, D. (2018). Analysis of rural economic restructuring driven by e-commerce based on the space of flows: The case of Xiaying village in central China. Journal of Rural Studies. https://doi.org/10.1016/j.jrurstud.2018.12.001
47. Long, H., & Liu, Y. (2016). Rural restructuring in China. Journal of Rural Studies, 47: 387-391. https://doi.org/10.1016/j.jrurstud.2016.07.028
48. Tu, S., Long, H., Zhang, Y., Ge, D., & Qu, Y. (2018). Rural restructuring at village level under rapid urbanization in metropolitan suburbs of China and its implications for innovations in land use policy. Habitat International, 77: 143-152. https://doi.org/10.1016/j.habitatint.2017.12.001
49. Ge, D., Long, H., Zhang, Y., & Tu, S. (2018). Analysis of the coupled relationship between grain yields and agricultural labor changes in China. Journal of Geographical Sciences, 28(1): 93-108. https://doi.org/10.1007/s11442-018-1461-5
50. Oncescu, J. (2016). Rural restructuring: the impact of a pulp and paper mill closure on rural community recreation services and amenities. World Leisure Journal, 58(3): 207-224. https://DOI: 10.1080/16078055.2016.1161662
51. Tu, S., & Long, H. (2017). Rural restructuring in China: Theory, approaches and research prospect. Journal of Geographical Sciences, 27(10): 1169-1184. https://doi.org/10.1007/s11442-017-1429-x
52. Islamic Parliament Research Center. (2000) law of the fifth development plan. (In Persian)
53. Jalali, A. A., Okhovvat, M. R., & Okhovvat, M. (2011). A new applicable model of Iran rural e-commerce development. Procedia Computer Science, 3, 1157-1163. https://doi.org/10.1016/j.procs.2010.12.187
54. Tang, W., & Zhu, J. (2020). Informality and rural industry: Rethinking the impacts of E-Commerce on rural development in China. Journal of Rural Studies, 75, 20-29. https://doi.org/10.1016/j.jrurstud.2020.02.010
55. Soriano, C. R. R. (2007). Exploring the ICT and rural poverty reduction link: Community telecenters and rural livelihoods in Wu'an, China. The Electronic Journal of Information Systems in Developing Countries, 32(1), 1-15. https://doi.org/10.1002/j.1681-4835.2007.tb00220.x
56. Lertwongsatien, C. & Wongpinunwatana, N. (2003). E-Commerce Adoption in Thailand: An Empirical Study of Small and Medium Enterprises (SMEs). Journal of Global Information Technology Management, 6(3): 67-83. https://DOI: 10.1080/1097198X.2003.10856356
57. Sparling, L., Toleman, M., & Cater-Steel, A. (2007). SME adoption of e-Commerce in the Central Okanagan region of Canada. ACIS 2007 Proceedings, 95.
58. Xu, S., Zhu, K., & Gibbs, J. (2004). Global technology, local adoption: A Cross‐Country investigation of internet adoption by companies in the united states and china. Electronic markets, 14(1): 13-24. https://DOI: 10.1080/1019678042000175261
59. Zhu, K., & Kraemer, K. L. (2005). Post-adoption variations in usage and value of e-business by organizations: cross-country evidence from the retail industry. Information systems research, 16(1): 61-84. https://doi.org/10.1287/isre.1050.0045
60. Al-Somali, S., Gholami, R., & Clegg, B. (2010). An investigation into the adoption of electronic business in Saudi Arabia using technology-organisation-environment framework. In UK Academy for Information Systems Conference Proceedings 2010.
61. Oliveira, T., & Martins, M. F. (2010). Understanding e‐business adoption across industries in European countries. Industrial Management & Data Systems, 110(9): 1337–1354. https://doi.org/10.1108/02635571011087428