Village and Development

Village and Development

The Model of Value Creation in Rural Businesses Based on Strategic Sensemaking: A Case Study of Agricultural and Handicraft Businesses of West Azerbaijan, Iran

Document Type : Original Article

Authors
A. Arabiun 1
Y. Mohammadkarimi 2
M. Yazdanparast 3
1 Associate Professor, Department of Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.
2 Assistance Professor, Department of Business Management, Faculty of Management and Accounting, Payame Noor University of Tehran, Tehran, Iran
3 Master of Entrepreneurship, Department of Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.
10.30490/rvt.2021.354546.1359
Abstract
T
The purpose of this study is to provide a value creation model in rural businesses based on strategic sensemaking. This research is a descriptive-survey method and applicable in terms of nature. Statistical population was of rural business owners active in the rural sector of South West Azerbaijan in the field of industrial animal husbandry, industrial greenhouses, handicrafts and semi-industrial Rug weaving in 2020, of which 265 were identified and 155 were selected by the sample size of Georgian-Morgan. The research instrument included the strategic significance questionnaire of Neil et al. and to measure the value creation of businesses, their classification information was used according to the method of calculating the approximate return. Multivariate linear regression analysis and quadratic structural equation model were used to analyze the data. Findings showed that four components of strategic meaning including internal communication, external communication and data collection and information classification predict 43.4% of the value creation variable. As a result, a business that is aware of its environment and, on the other hand, the transfer of information and communication within the business flows smoothly, therefore, is in a better position to create value.
Keywords
Entrepreneurship
Strategic Sensemaking
Value Creation
Business
Rural Development
West Azerbaijan (Province)
  1. Ayre, C. and Scally, A.J. (2014). Critical values for Lawshe’s content validity ratio: Revisiting the original methods of calculation. Measurement and Evaluation in Counseling and Development, 47(1): 79-86.
  2. Bafandeh Zendeh A., Norouzi, D. and Aali, S. (2010). The study of managers problems of eastern Azerbaijan small and medium sized enterprises (SMES). Journal Of Industrial Management, 5(13): 41-54. (Persian)
  3. Collis, D.J. and Montgomery, C.A. (1998). Creating corporate advantage: Harvard Business Review, 7(3): 70-83.
  4. Das, D.Ch. (2014). Prospects and challenges of rural entrepreneurship development in NER-A study. International Journal Of Humanities and Social Science Studies, 1(3): 178-182.
  5. Dervin, B. (1999). On studying information seeking methodologically: The implications of connecting metatheory to method. Information Processing and Management, 35(6): 727-750.
  6. Farahani, H. and Hajihosseini, S. (2014). An evaluation about potentials of rural areas for entrepreneurship and developing empowerment in villagers, case: Shawl district in Buin Zahra township. Journal of Rural Research, 4(4): 715-7 (Persian)
  7. Fornell, C. and Larcker, D.F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1): 39-50.
  8. .Hosseini, S.F., Khodadad Hosseini, S.H., Kordnaiej, A. and Ahmadi, P. (2014). Designing a Model for Successful strategy implementation in Iran's automotive companies. Iranian journal of management sciences, 9(36): 1-24. (Persian)
  9. Hosseininia, Gh. and Fallahi, H. (2017). Factors affecting the development of rural entrepreneurship: A case study on the rural areas of Manoojan county. Journal of Rural Research, 8(1): 22-37. (Persian)
  10. Jansen, J.J.P., Vera, D. and Crossan, M. (2009). Strategic leadership for exploration and exploitation: The moderating role of environmental dynamism. The Leadership Quarterly, 14(1): 5-18.
  11. Karami, M., Agahi, H. and Salehi, L. (2020). The effect of agricultural bank credits on the quality of life in rural regions (Case study: Zanjan township). Journal of Rural Research, 10(4): 614-633. (Persian)
  12. Karimzadeh, H. and Majnouni Toutakhaneh, A. (2019). Modeling the development of rural entrepreneurship based on local capacities: A case study of rural settlements in Bonab county of Iran. Village and Development, 22(85): 87-110. (Persian)
  13. Khorrambakht, A. (2018). Investigating the Process of digestion of peri-urban villages in Tehran's development; Using GIS. Research and Urban Development, 9(34): 217-228. (Persian)
  14. Lambert, S.C. and Davidson, R.A. (2013). Applications of the business model in studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010. European management journal, 31(6): 668-681.
  15. Maitlis, S. and Christianson, M.K. (2014). Sensemaking in organizations: Taking stock and moving forward. Academy of Management Annals, 8(1): 57-125.
  16. Maitlis, S. and Sonenshein, S. (2010). Sensemaking in crisis and change: Inspiration and insights from Weick (1988). Journal of management studies, 47(3): 551-580.
  17. Martins, L.L., Rindova, V.P. and Greenbaum, B.E. (2015). Unlocking the hidden value of concepts: A cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1): 99-117.
  18. Massoud, M.A., Issa, S., El-Fadel, M. and Jamali, I. (2016). Sustainable livelihood approach towards enhanced management of rural resources. International Journal of Sustainable Society, 8(1): 54-72.
  19. Matemilola, B.T., Bany-Ariffin, A.N. and Azman-Saini, W.N.W. (2013). Impact of leverage and managerial skills on shareholders’ return. Procedia Economics and Finance, 7: 103-115.
  20. Neill, S., McKee, D. and Rose, G.M. (2007). Developing the organization's sensemaking capability: Precursor to an adaptive strategic marketing response. Industrial Marketing Management, 36(6): 731-744.
  21. Pulles, N.J., Veldman, J. and Schiele, H. (2014). Identifying innovative suppliers in business networks: An empirical study. Industrial Marketing Management, 43(3): 409-418.
  22. Rahmani, A., Gholami Gakieh, F. and Pakizeh, K. (2013). The impact of financial flexibility on investment ability and firm’s value enhancing. Journal of Accounting Advances, 4(2): 53-76. (Persian)
  23. Ricciardi, F., Zardini, A. and Rossignoli, C. (2016). Organizational dynamism and adaptive business model innovation: The triple paradox configuration. Journal of Business Research, 69(11): 5487-5493.
  24. Sandberg, J. and Tsoukas, H. (2015). Making sense of the sensemaking perspective: Its constituents, limitations, and opportunities for further development. Journal of Organizational Behavior, 36(S1): S6-S32.
  25. Schilke, O. (2014). On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism. Strategic management journal, 35(2): 179-203.
  26. Taleshi , M., Shaterian, M. and Ganjianpour, M. (2020). State investment and empowerment of local communities, an approach to sustainable rural development (Experience of Kashan rural area in Central Iran). Journal of Sustainable Rural Development, 4(2): 229-242.
  27. Teece, D.J. (2010). Business models, business strategy and innovation. Long range planning, 43(2-3): 172-194.
  28. Vares, H., Heidari, A. and Akbari, M. (2018). Investigating the relationship between strategic sensemaking and business model innovation. Journal of Business Management, 10(2): 487-507. (Persian)
  29. Waldner, F., Poetz, M.K., Grimpe, Ch. and Eurich, M. (2015). Antecedents and consequences of business model innovation: The role of industry structure. Business models and modelling, 33: 347-386.
  30. Weick, K.E. (1995). Sensemaking in organization. University of Michigan: Sage
  31. Zandieh, Sh., Sarafizadeh Ghazvini, A., Aalam Tabriz, A. and Sakhdari, K. (2020). Rural entrepreneurship development model based on cognitive empowerment and explaining the role of institutional environment in it: A case study of rural businesses. Journal of Village and Development, 23(90): 63-87. (Persian).