The Impact of Research and Development on the Organizational Agility and Productivity of Production Factors Using Structural Equations and Dynamical System Approach

Subject Areas : Industrial Management

Seyyed mohammad Zargar ¹ (Assistant Professor, Department of Industrial Management, Semnan Branch, Islamic Azad University, Semnan, Iran)
Seyyed Abdollah Heydariyeh ² (Assistant Professor, Department of Industrial Management, Semnan Branch, Islamic Azad University, Semnan, Iran)
Seyyed Majid Taheri ³ (Master of Industrial Management, Semnan Branch, Islamic Azad University, Semnan, Iran)

Received: 2021-04-10 Accepted : 2022-04-05 Published : 2022-06-22

Keywords: Productivity, System Dynamics, Structural Equations, Research and Development, Organizational Agility,

Abstract :

Research and development (R & D) play an important role in the development of societies and the country's economic growth and developed and industrialized countries have put a considerable investment on these issues. The aim of this study was to investigate the effects of research and development on the organizational agility and productivity of the manufacturing companies in the industrial town of Semnan. In this research, after reviewing theoretical foundations and previous studies, a model of the effects of research and development on organizational agility and productivity was presented and validated using structural equation method. Then, based on the obtained results and using experts' opinions, a dynamic model was designed to show the dynamics of the variables over time.  The validity of the model was evaluated and validated using system dynamic approach. The results in the first section indicate the positive significant impact of research and development activities on the agility and productivity. Additionally, the results of different simulations in the model revealed that an increase in research and development budget through a self-reinforcing loop after the twelfth month from the twelfth month after can make an increase in the agility and productivity in the form of exponential growth.

References:

Alborzi, M., Dadras, K., Gharakhany, D. (2016). Iranian Designing a System Dynamic Model for Corporate Cash Management. Journal of Development & Evolution Management, 23, 53-62, [in Persian].

Ahuja, I. P. S. (2011). Managing Research and Development for Core Competence Building in an Organization. Journal of Technology Management & Innovation. 6 (1): 58-65.

Ansari, R., Abedi Sharabiani, A., Khayyat khoshdooz, M. (2016). Impact of Technology Management on Agility Capabilities, Case Study in Kashan Steel Factory. Journal of Production and Operations Management, 7(1), 191-214, [in Persian].

Anoshe, Sh. (2011), The effect of R & D expenditures on economic growth by investor segments (A case study of OIC member countries). Practical Economy, 2 (7): 59-78, [in Persian].

Archibugi, D., Coco, A., 2005. Is Europe becoming the most dynamic knowledge economy in the world? Journal of Common Market Studies. 43 (3), 433–459.

Bavarsad, B., Nis, A., Darabian, P., (2016). Investigate the effect of strategic agility and operational responsiveness on company performance. International Conference on Humanities and behavioral sciences. Tehran. Iran, [in Persian].

Chan, F. T. S., kumar n. (2017). global supplier development considering risk factor using fuzzy extended AHP – based approach. Omega 35(4), 417-431.

Cheratian, I., Goltabar, S., (2016). Testing the effects of research and development on the growth of labor productivity in small and entrepreneurial industries, international conference on industrial Engineering & Management, Tehran, Iran, [in Persian].

Christopher, M., & Towill, D. (2001). An Integrated Model for the Design of Agile Supply Chains. International Journal of Physical Distribution & Logistics Management, 31(4), 235-246.

Davari, A., Rezazadeh, A., (2013). Structural Equation Modeling with PLS. Academic center for Education, Culture and Research Publishing. First Edition, [in Persian].

Heidari H, Farrokhnahad P, Mohammadzadeh Y. (2016), The role of research and development and absorption capacity in the total factor productivity of selected developing countries. IRPHE. 22 (3) :37-62, [in Persian].

Hosseininia, Gh. H., Yaghoubi Farani, A., Irani, M., (2016). Factors Affecting Research and Development’ Success in Food Industries. Journal of Entrepreneurship in Agriculture. 2 (4): 113-130, [in Persian].

Iranzadeh, S., Mesbahi, N., Shokri, A., Ebrahimi, R. (2016). 'A study of the relation between organizational agility dimensions and the productivity of Dana insurance company employees in East Azarbaijan province', Quarterly journal of productivity management, 10(38), pp. 117-146. [in Persian].

Iranzadeh, S., Fattahi Sarand, V., Tahoni, A. (2013). Evaluating the Agile Manufacturing in Small and Medium Industries of East Azerbaijan Province based on Agility Capabilities: A Fuzzy Topsis Method. Quarterly journal of productivity management, 7(26), 15-42 [in Persian].

khorshid, S., Mahfouzi Mousavi, S. (2010). Measuring and analyzing model of manufacturing organizations need to be agile by using MADM techniques and fuzzy approach. Industrial Management Journal, 2(4), 37-56. [in Persian].

Máñez, J. A., Rochina‐Barrachina, M. E., & Sanchis‐Llopis, J. A. (2015). The dynamic linkages among exports, R&D and productivity. The World Economy, 38(4), 583-612.

 

Masodifar, S., Dehghani, A., (2016). Investigating the Impact of Investment in R & D on Export in Iran's Industrial Industries. 5th international conference on accounting & Management and 2th international conference on entrepreneurship & open innovation. Tehran. Iran. [in Persian].

Mehregan, N., soltani sehat, L. (2014). R&D costs and total factor productivity of industrial sector. The Macro and strategic policies, 2(Vol 2- No5), 1-24, [in Persian].

Mohammadzadeh Asl, N., Seifi Pour, R., Mehrabian, A. (2017). The Impact of the Return of Research and Development on Economic Growth (Using Regression Quintiles Model)., 8(15), 1-14, [in Persian].

Pan, F. & Nagi, P. (2013). Multi-echelon supply chain network design in agile manufacturing. Omega, 41(6), 969–983.

Pieri, F., Vecchi, M., Venturini, F. (2018). Modelling the joint impact of R&D and ICT on productivity: A frontier analysis approach. Research Policy. 47 (9): 1842- 1852.

Pour taherian, E., Khan mohammadi, E., (2016). Strategic management of research and development activities. 2th International Conference on management' Economic & Development. Tehran. Iran, [in Persian].

Radfar, R., Khamseh, A., (2008). Investigating the Impact of R & D Globalization on Technology Development and Innovation. Technology Growth, 4(16): 33-46. [in Persian].

Rahnavard, F., Alijani, Z. (2016). The Effect of Information Technology on Organizational Agility in The Light of Organizational Culture. Journal of Development & Evolution Management, 24, 45-55.  [in Persian].

Rajabzadeh, A., Seyyed Hosseini, S. M., Alborzi, M., Razavi, M., Ramezani, A. (2012).Design Business Agility Dynamic Model in manufacturing organization with dynamic systems approach Case study: The automobile trading companies. ORMR. 2 (1) :45-66, [in Persian].

Randhawa, J. S., Sethi, A., S. (2017). An Empirical Study to Examine the Role Smart Manufacturing in

Improving Productivity and Accelerating Innovation. International Journal of Engineering and Management Research. 7 (3): 607- 615.

shekarchi zadeh, A. R., Haji Esmaeili, S., (2015). A review of human resource productivity models and their relationship with the quality of services in service and government organizations, First national conference on services strategic Management. Esfahan. Iran. [in Persian].

Shin, H. Lee, JN DS Kim, H. (2015). Strategic agility of Korean small and medium enterprises and its influence on operational and firm performance. International Journal of Production- Elsevier. 168:181- 196.

Shiri, M., Zolfi gol, M. A. (2010). R & D Centers: Successful bridge between university and industry, Science Cultivation Journal, 1 (1): 30- 35. [in Persian].

Solomon, E. M., Ugur, M., Guidi, F., & Trushin, E. (2015). Variations in the effect of R&D investment on firm productivity: UK evidence.

Sterman, J. (2000), Business Dynamics: Systems Thinking and Modeling for a Complex World, McGraw-Hill, Maidenhead, 1-1008.

Taher, B., (2015). Investigating Factors Affecting Human Resource Efficiency. Work & Society. 190: 71-58. [in Persian].

Vali eydi, H., Khoda moradi, M., Koshesh, A., (2016). Provide a model for the alignment of research and development strategies with the organization's large strategies: Case study in the water and electricity industry. 1th international conference Business & organizational Intelligence, Tehran, Iran.

Valipour Khatir M, Mohammadpour Omran M, Akbarzadeh Z. Evaluating Indicators of Organizational Agility by Fuzzy Multi Criteria Decision Making: (Iran Power Development Organization). 3. 2015; 3 (7) :1-18, [in Persian].

Wageeh, N. (2016). Organization Agility: The Key to organizational success. International Journal of Business and Management. 11 (5): 296-309.

Yazdan bakhsh, M., (2016). R & D: an essential necessity for globalization, international conference on industrial engineering & Management. Tehran, Iran. [in Persian].

Yeganegi, K., & Azar, M. (2012). The Effect of IT on Organizational Agility. Proceedings of the 2012 International Conference on Industrial Engineering and Operations Management, Istanbul, Turkey.