Business Governance System in Iran: A Network Analysis for Identifying Challenges and Opportunities in Organizational Relationships

Document Type : Original Article

Authors

1 Department of Reclamation of Arid and Mountainous Regions, Faculty of Natural Resources, University of Tehran, Karaj, Iran.

2 Social Business Institute, University of Tehran, Tehran, Iran.

Abstract

Governance systems and policymaking in the business sector are key drivers of economic and social development. In this context, examining and analyzing Iran’s business governance system is particularly significant, especially given the country’s current economic challenges. This study investigates the business governance system in Iran and analyzes the challenges and opportunities in organizational relationships. The research focuses on three key laws: the Law on Continuous Improvement of the Business Environment, the Law on Support for Development and Sustainable Employment Creation in Rural and Nomadic Areas, and the Law on Organizing and Supporting Home-Based Businesses. The methodology involves extracting relationships from legal documents and utilizing network analysis to calculate various metrics, including density, centralization, transitivity, average geodesic distance, degree centrality, betweenness centrality, closeness centrality, and eigenvector centrality.The findings reveal that while the Law on Continuous Improvement of the Business Environment has succeeded in establishing communication among institutions, its low transitivity indicates a need for stronger interactions. Conversely, the Law on Support for Development and Sustainable Employment Creation has effectively formed an extensive communication network, demonstrating its capacity to connect various stakeholders. Additionally, despite its significant potential, the Law on Organizing and Supporting Home-Based Businesses has not yet been fully utilized. This study highlights the importance of strengthening institutional relationships to promote sustainable economic development in Iran. The findings can assist policymakers in identifying challenges and proposing effective strategies to improve business governance.

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History

  • Receive Date: 08 December 2024
  • Revise Date: 25 January 2025
  • Accept Date: 27 January 2025
  • Publish Date: 19 February 2025

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