Modeling the Factors Affecting the Development of Information Technology-Based Businesses in Iran Using the Structural Equation Method

Purpose: In recent decades, a significant number of information technology-based businesses have risen to the top of the world's leading companies list. Until the early years of the third millennium AD, large companies and owners of oil wells and mineral resources, along with industrial production complexes that are several decades and several hundred years old, have been the flagships of the list
of the largest and most successful companies in the world. However, this leadership has been astonishingly challenged by IT-based start-ups in the last two decades. The value of the production of information technology businesses from the total production of the world increased by about 29% in approximately 5 years, between 2015 and 2020, reaching $24.615 trillion. The share of the digital economy in the total world economy reached about 25%. In other words, the digital economy has absorbed two and a half percent of the traditional economy in just 5 years. These instances underscore the importance of considering the position of information technology-based businesses. According to the 2018 report of the Ministry of Information Technology, the share of the digital economy in the total gross domestic product of the country is approximately six and a half percent, while the global average of this index is around fifteen percent. This fact highlights the need to focus more on the development of these businesses in the country, which is the rationale for conducting the present research. This research was carried out with the aim of identifying the various dimensions influencing the formation and growth of these businesses and how these factors are interconnected in the country.
Method: The present research was conducted in two distinct stages, qualitative and quantitative. Initially, the problem was identified and defined, followed by a review of previous related studies to identify the main dimensions of the model. Subsequently, a total of 12 in-depth semi-structured interviews were conducted with managers, entrepreneurs, technology policy makers, and information technology experts. Additionally, archival sources were consulted. Through content analysis and the coding method, the research conceptual model was developed, comprising three main categories. In the quantitative phase, the model was refined to form the basis of the research questionnaire. After assessing the content validity, the questionnaire was distributed to three groups within the industry community: 1) managers and executives of relevant businesses, 2) entrepreneurs and business owners, and 3) academic and business experts. Data collected from these questionnaires were analyzed using various statistical tests, and the validity of the model and its structures were confirmed through structural equation modeling.
Findings: After conducting the systematic steps of the research and analyzing the data from the experiences of the participants in the qualitative part of the research, three categories were identified as the main ones: internal organizational characteristics, environmental drivers and obstacles, and political factors. Based on the obtained results, policy factors in this model are an exogenous and independent variable that plays a key role in the development of these businesses. This finding confirms the necessity of the government's presence and adoption of policies to support the development of these businesses. According to the results of this research, another crucial dimension directly affected by government policies is environmental factors. The third category of factors indirectly influenced by government policies includes organizational factors. These factors encompass having the right project team and access to expert human resources, the appropriate business model, a focus on innovation and marketing power, and market penetration power.
Conclusion: By identifying these factors, the path becomes clearer for the government and other policy-making institutions. The development of the digital economy in the country necessitates simultaneous attention to environmental and internal factors. The government, as a key policy maker, plays a crucial role in fostering digital businesses. Activists and entrepreneurs in this sector view financing as a significant bottleneck in business development. Therefore, it is imperative for relevant institutions to prioritize current policies that support these businesses and facilitate financing for them.