designing marketing innovation model of date business

12
21 Designing Marketing Innovation Model of date Business Cluster in Iran (Case study: Khuzestan Province) Masoud Hekmat Department of Agricultural Development, Science and Research Branch, Islamic Azad University, Tehran, Iran Seyed Mehdi Mirdamadi: Corresponding Author Associate Professor, Department of Agricultural Development, Science and Research Branch, Islamic Azad University, Tehran, Iran Seyed Jamal Farajollah Hosseini Associate Professor, Department of Agricultural Extension and Education, Science and Research Branch, Islamic Azad University, Tehran, Iran Davood Samari Associate Professor, Islamic Azad University, Karaj Branch, Karaj, Iran Mohsen Ebrahimpour Institute of Planning and Agricultural Economics Research, Tehran, Iran Abstract: The aim of the research is to design marketing innovation model of date business cluster in Khuzestan, Iran. Regarding the nature of the subject, this study is quantitative and regarding the purpose, it is applied. In terms of methodology, it is descriptive-correlational and analytical, and causal-relational type regarding controlling the variables, and in terms of time, it is a review study. The study population includes all executives, assistants, and marketing staff of date production and processing workshops that are members of the date business cluster of Khuzestan. They are totally 67 workshops in which 392 people are employed in marketing. In this study, to determine the study population, random sampling method was used and the number of sample was selected in proportion to the village population. Using the table provided by Krejcie and Morgan (1970) and according to the number of people and volume of the study sample size, the study population was estimated as n=190. Dependent variable is marketing innovation aspects in date business cluster and independent variables are individual characteristics, policy factors, infrastructure factors, economic factors, social factors, management factors and educational factors. The results obtained using structural equation modeling indicated that "education-promoting" factor with factor loadings (0.87) has the highest and "policymaking" factor with factor loadings (0.79) has the lowest correlation with latent variable “Marketing innovation dimensions of date business clusters." In addition, "innovation management" with factor loadings (2.28) has the most and "innovative activities" with factor loadings (-0.2) has the lowest correlation with the latent variable. Keywords: Business cluster, Khuzestan Province, Dates, Marketing, Innovation

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21

Designing Marketing Innovation Model of date

Business Cluster in Iran (Case study: Khuzestan

Province)

Masoud Hekmat Department of Agricultural Development, Science and Research Branch, Islamic

Azad University, Tehran, Iran

Seyed Mehdi Mirdamadi: Corresponding Author Associate Professor, Department of Agricultural Development, Science and Research

Branch, Islamic Azad University, Tehran, Iran

Seyed Jamal Farajollah Hosseini Associate Professor, Department of Agricultural Extension and Education, Science

and Research Branch, Islamic Azad University, Tehran, Iran

Davood Samari Associate Professor, Islamic Azad University, Karaj Branch, Karaj, Iran

Mohsen Ebrahimpour Institute of Planning and Agricultural Economics Research, Tehran, Iran

Abstract: The aim of the research is to design marketing innovation model of date business cluster in

Khuzestan, Iran. Regarding the nature of the subject, this study is quantitative and regarding the

purpose, it is applied. In terms of methodology, it is descriptive-correlational and analytical, and

causal-relational type regarding controlling the variables, and in terms of time, it is a review study.

The study population includes all executives, assistants, and marketing staff of date production and

processing workshops that are members of the date business cluster of Khuzestan. They are totally

67 workshops in which 392 people are employed in marketing. In this study, to determine the study

population, random sampling method was used and the number of sample was selected in proportion

to the village population. Using the table provided by Krejcie and Morgan (1970) and according to

the number of people and volume of the study sample size, the study population was estimated as

n=190. Dependent variable is marketing innovation aspects in date business cluster and

independent variables are individual characteristics, policy factors, infrastructure factors, economic

factors, social factors, management factors and educational factors. The results obtained using

structural equation modeling indicated that "education-promoting" factor with factor loadings (0.87)

has the highest and "policymaking" factor with factor loadings (0.79) has the lowest correlation with

latent variable “Marketing innovation dimensions of date business clusters." In addition, "innovation

management" with factor loadings (2.28) has the most and "innovative activities" with factor

loadings (-0.2) has the lowest correlation with the latent variable.

Keywords: Business cluster, Khuzestan Province, Dates, Marketing, Innovation

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

22

1- Introduction

Reduced economic efficiency, misallocation of resources and unfavorable income

distribution with reduction of incentives to invest in the long term will negatively affect the

economic growth of communities, especially Third World countries. In recent decades, some

developing countries have reached considerable success in economic development and trade,

especially non-oil exports (Hosseini and Hosseini, 2009). In past decades, Iran has had

abundant oil revenues, but physical capital infrastructure has not been in good conditions.

Legal and Cognitive institutions required for the country's economic growth do not exist,

and unproductive sector has dominated the economy and affected the allocation of

resources. All these factors combine to make such a difficult status of growth and prosperity

to the country (Mehregan and Mohseni, 2012).

One of the major factors that lead to failure to achieve the objectives of agricultural

development and increased production and income of farmers in developing countries is the

agricultural marketing system failure. Today, in most advanced countries, marketing of

agricultural products is considered as one of the major sectors of the economy. Given the

current world situation, the production has gotten away from traditional form and

production for sale on the market is one of the main targets of manufacturers. Market is the

embodiment of all activities of producers to get a profit from production. Thus, marketing

campaign does not start from the beginning of harvest time but from the decision to

produce. In this regard, the marketing of agricultural products gets special importance due

to the particular characteristics of these products including corruptibility, seasonality and

demand for all-season. One of the things that have always been in the marketing of

agricultural products in less developed countries including Iran is the difference in price of

the producer that is the price he gets with the price the consumer pays. However, it should

not be assumed that this difference in price is only in developing countries, but it is also

seen in developed countries. However, here the higher price differences are due to services

such as packing, grading and converting the product whereas in less developed countries

little service is done on the product. One of the factors blamed for this difference in prices is

mediating factor called speculators. This mediating factor has a decisive role in prices and

thereby becomes the owner of huge profits due to the monopoly control of the market

(Mirzajani, 2011).

Population growth, growth of urbanization, food security and food security crisis, the

instability of the environment, the move from traditional agriculture to commercial

agriculture have caused enhancing living standards and improving the income of producers

to be the subject of agribusiness and providing innovative patterns to be important. This is

such that marketing concepts in the current circumstances have assumed broader

dimensions and instead of concentrating only on consumers, it includes all stages from

planning stage to stages later after consumption. Therefore, it makes the importance of

innovation in marketing of agricultural products and the need to review the current

situation and the structure of the market and marketing of agricultural products inevitable

(Kazemnejad, et al., 2004).

Today, with the increasing number of domestic and foreign producers, competition for

granting consumer satisfaction is an important goal of any market. Improved packaging,

grading, storage and timely delivery of product, reducing the sale prices by reducing costs,

reducing intermediation margin are of the factors that play an important role is satisfying

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

23

producers and consumers and lead to increase of product marketing and internal and

external market boom (Rajai Nasiri, 2011).

Increasing unemployment alongside increasing degradation of resources is of economic-

cultural challenges of many developing countries including Iran. These problems have more

depth and complexity in rural areas. One of the basic economic problems of the agricultural

sector in Iran in the past and now is the low average income of agricultural producers. Low

income is the cause of many problems including poverty, inequality, and migration and so

on. Low-income of farmers and producers have several reasons, one of the most important

one is hidden and seen unemployment in the agricultural sector, which is due to the

inability to create jobs in this sector.

Agribusiness business clusters due to the nature of their activities and the focus on

different areas can greatly reduce unemployment in their performance areas and prevent

possible social damage in these areas. Thus, identifying and access to new markets and

offering innovative models in the field of marketing of these clusters can play a significant

role in reducing these problems (Mollashahi, 2012).

Business clusters of agriculture could be the working engine of national and regional

economy, and the development of agricultural enterprises and production units in the form

of cluster development will be more efficient due to increased output of cooperation and

collaborative activities. On the other hand, attention to marketing of agricultural business

clusters and creating and deploying an innovative marketing system could increase the

number of production units in the region, improve the employment, boost exports, create

links with other areas, and identifying and access to new markets.

Iran is considered as a major producer of dates in the world, so that in 2007, with

production of more than 16% of world date, after Egypt won the second place in the world,

but because of problems in the field of marketing, packaging and fulfillment of export

promotion programs, it could not compete with other producers and exporters (Karimifard

et al., 2011).

This research seeks to explain and design the pattern of innovation in marketing of date

business cluster in Khuzestan, to make it possible to offer the produced product with a

simpler way to consumer markets and on the other hand significantly increase the income

of the producers through decreasing the role of intermediaries and speculators. Obviously,

achieving these goals paves the way for the entry of other interested in producing. Thus,

improving the employment status in the region will not be away from reality that will bring

about the economic growth in the studied area.

Mousavi and colleagues (2014) conducted a study called social factors contributing to the

enhancement of innovation management in agriculture and rural cooperatives in Tehran.

The results showed that increasing cooperation and interaction between the managers and

members of co-operatives in the field of innovation, beliefs, and convictions of members of

the innovation in cooperatives and agricultural cooperatives with each other in exchanging

innovative experiences have explained 55.2% of the changes of improving management of

innovation in rural agricultural cooperatives.

Saafi sis et al (2014) conducted a study titled comparative analysis of the role of public and

private organizations in promoting the adoption of agricultural initiatives in Tarom,

Zanjan. The results of the regression analysis showed that social capital of public sector of

agricultural extension explains 31.5% of the and the changes in adoption of innovations,

this is while the private sector accounted for only 3.5% of the changes of adoption.

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

24

Mousavi and Farajollah Hosseini (2013) conducted a study titled “Effective educational

strategies to promote innovation management in agriculture and rural cooperatives in

Tehran.” The results of multiple stepwise regression analysis showed that the solutions of

visiting research-scientific centers active in the field of innovative technologies in

agriculture and holding educational courses of introduction to innovation management for

cooperative managers explained 45 percent of the change in promotion of innovation

management in agricultural and rural cooperatives.

Soltani et al (2012) carried out a study as the identification of factors affecting the

management of innovation in small rural food industry in Tehran. The results showed that

environmental factors and relationship with manufacturers’ factors have a positive impact

on the companies becoming innovative. Among innovative companies, factors affecting the

level of innovation management are the properties of company with negative impact contact

with consultant with a positive impact.

Moreira et al (2015) conducted a study called (Drivers of marketing innovation in

companies in Portugal.” The results showed that the financial support of the research and

development of research activities within the company: the acquisition of machinery,

software, and equipment, acquisition of foreign knowledge and performance of other

producers affect marketing activities towards the tendency of companies to innovate in the

marketing process.

Omani (2015) conducted a study entitled “Analyzing the innovation management prediction

model in management of process industries of livestock. The results showed that the level of

innovation management in the processing and finishing industries of livestock products in

Khuzestan is not in a good condition. Income, competitiveness, responsibility, risk-taking,

the desire to creativity, education and attitude towards innovation play a positive and

effective role in improving the management of innovation.

Mumtaz Baloch and Gopal Thapa (2014) conducted a study titled “Agricultural Extension

in Pakistan: access and content of date owners.” Logistic regression analysis identified 5

variables out of 6 variables that had a significant effect on date owners access to extension

services including age of household head, education of household head, number of palms

owned by the household head, the trees inherited and the percentage of dead trees. The

majority of farmers were not satisfied with three main ways to promote public extension

services provided by the authorities. In order to overcome this shortcoming, reviewing

policy and advocacy planning largely eliminates the problem of agriculture.

Ghanee (2014) conducted a study titled “Status of Iranian date market and its ability to

enter the EU market. The results showed that Europe date imports has allocated 10% of

world imports to itself while its value is 30% of the total value of world exports. The results

reflect the fact that any country wishing to enter EU market to export date to Europe, at

first must be removed from their traditional state. However, with ups and downs in the

export, Iran does not have a permanent and stable overseas market, but Iran has the

opportunity to match its date in line with international standards in terms of quality and

packaging and in this way achieve widespread markets.

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

25

2- Research Methodology

Regarding the nature of the subject, this study is quantitative and regarding the purpose, it

is applied. In terms of methodology, it is descriptive-correlational and analytical, and

causal-relational type regarding controlling the variables, and in terms of time, it is a

review study.

The study population includes all executives, assistants, and marketing staff of date

production and processing workshops that are members of the date business cluster of

Khuzestan. They are totally 67 workshops in which 392 people are employed in marketing.

In this study, to determine the study population, random sampling method was used and

the number of sample was selected in proportion to the village population. Using the table

provided by Krejcie and Morgan (1970) and according to the number of people and volume

of the study sample size, the study population was estimated as n=190.

Dependent variable is marketing innovation aspects in date business cluster, which

includes three aspects: innovation activities, innovation management, and Cognitive

factors.

Independent variables in this study are in the following groups:

Individual characteristics (age, sex, level of education, experience in the production and

marketing of dates, marital status), policy factors, infrastructure factors, economic factors,

social factors, management factors, and educational factors. To identify latent variables of

the research and their extent of effect, structural equation modeling using LISREL

software was used.

3- Results

The results obtained showed that 79.5% of the respondents with frequency of 151 were men

and 20.5 were women with frequency of 39. In studying the marital status, it was found

that 27.9% of the study population with 53 frequency were single and 72.1% with a

frequency of 137 were married.

The data showed that of the total of 190 staff members of the date business cluster

associated with marketing activities regarding the age groups, 5.9% with a frequency of 11

subjects are less than 20 years, 35.3% with a frequency of 67 people in the group of 21-35

years, 43.6% with frequency of 83 are in 36-50 age group, 11.6% with a frequency of 22

people in the 51-65 group and 3.7% with a frequency of 7 persons are in 66 years and over

group.

The results showed that 4.7% of subjects with a frequency of 9 people in terms of education

are illiterate, 10.5 percent with a frequency of 20 have elementary level studies, 17.4% with

a frequency of 33 people have guidance school education, 20 percent with a frequency of 38

subjects have high school education, 25.3 percent with a frequency of 48 have a diploma,

and 22.1% with a frequency of 42 have higher than diploma level of education.

The results showed that 60% of subjects with a frequency of 114 in terms of experience in

date production are in 1 to 5 years’ experience, 19.5 percent with a frequency of 37 people

are in group of 6 to 10 years, 8.4 percent with a frequency of 16 people are in from 11 to 15

years, 3.2% with a frequency of 6 people from 16 to 20 years, 7.3 percent with a frequency

of 14 persons at 21 to 25 years of experience and 1.6% with a frequency of 3 subjects are in

the group of 26 to 30 years of experience.

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

26

The results showed that 76.8% of subjects with a frequency of 146 in terms of marketing

experience of date are in group 1 to 10 years, 11.6% with a frequency of 22 are in the group

of 11 to 20 years of experience, 10% with a frequency of 19 people in the group from 21 to 30

years and 1.6%, with a frequency of 3 subjects are in 31 to 40 years (table 1).

Table 1. Distribution of individuals according to personal characteristics

Variables frequency (n) Percent The cumulative percentage

Gender

Man 151 79.5

Women 39 20.5

Marital status

Single 53 27.9

Married 137 72.1

Age Groups

Less than 20 11 5.8 5.8

35 to 21 67 35.3 41.1

50 to 36 83 43.6 84.7

65 to 51 22 11.6 96.3

66 and over 7 3.7 100

Education

Illiterate 46 13.1 13.1

Elementary 97 27.6 40.6

Guidance 85 24.1 64.8

High school 37 10.5 75.3

Diploma 62 17.6 92.9

Higher than diploma 25 7.1 100

The record in date production

5 to 1 114 60 60

10 to 6 37 19.5 79.5

15 to 11 16 8.4 87.9

to 20 16 6 3.2 91.1

21 to 25 14 7.3 98.4

26 to 30 3 1.6 100

Marketing experience

1 to 10 146 76.8 76.8

11 to 20 22 11.6 88.4

21 to 30 19 10 98.4

31 to 40 3 1.6 100

Modeling of structural equation Due to the inclusion of SEM measurement errors in the model, structural equation model

provides more accurate estimates of the causal relationship. Weighted least squares

estimation model with data correlation and covariance matrix asymptotic Couric were used

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

27

to analyze the data. Weighted least squares method was preferred because the data were

stratified in five classes and Couric solidarity should be calculated instead of Pearson

correlation.

Chi-Square=739.34 df=428 P-value=0.12 RMSEA=0.044

Figure 1: Structural Equation Model of the Research

COG= Cognitive Factors Man= Managerial Factors Policy= Policy Making Factors

IM= Innovation Management Edu= Educational Factors Social= Social Factors

IA= Innovation Activity INNO MAR= Innovation

Marketing

Eco= Economical Factors

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

28

Table 2: Studying the values of the structural equation

Structures Symbol Standard rate value T Significance

Cogn

itiv

e

Fact

ors

C1 0.66 - Insignificant

C2 0.70 6.54 Significant

C3 0.67 6.37 Significant

C4 0.71 6.65 Significant

C5 0.69 6.49 Significant

C6 0.66 6.27 Significant

C6 0.58 5.70 Significant

Inn

ovati

on

Man

agem

en

t

I M1 0.60 - Insignificant

I M2 0.70 8.41 Significant

I M3 0.67 8.19 Significant

I M4 0.65 8.01 Significant

I M5 0.64 7.90 Significant

I M6 0.60 7.53 Significant

I M7 0.60 8.21 Significant

I M8 0.63 7.80 Significant

I M9 0.61 7.57 Significant

I M10 0.09 7.28 Significant

Inn

ovati

ve A

ctiv

ity

I A1 0.67 - Insignificant

I A2 0.66 7.75 Significant

I A3 0.62 7.33 Significant

I A4 0.64 7.55 Significant

I A5 0.62 7.37 Significant

I A6 0.61 7.22 Significant

I A7 0.75 8.61 Significant

I A8 0.75 8.65 Significant

I A9 0.55 6.61 Significant

According to the results obtained from this analysis, each of the options according to their

special are placed in a special place. In cognitive factors, "the interaction between managers

and employees" with the highest factor loadings (0.70) is the first priority, and "the

importance of marketing and identifying new markets" with (0.58) factor loadings is in the

last priority (Table 2).

In innovative activities “improvement of distribution network” with the highest factor

loadings (0.85) is in the first priority, and “improving the quality of services” with factor

loadings (0.55) has the last priority (Table 2).

In “management of innovation” the factor of “investment in research and development” with

highest factor loadings (0.70) is in the first priority, and elements of “marketing innovation

must be accompanied by spending cuts” with factor loadings (0.09) is in the last priority

(Table 2). Table 3: Overview of structural equation modeling

Latent variable Observed variables Standard rate value T Significance

Mark

et

ing

Mech

an

ism

s

social factors 0.81 13.39 Significant

Economic factors 0.87 14.91 Significant

Management factors 0.82 13.72

Significant

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

29

Educational factors

- extension 0.87 14.95

Significant

Policy making

factors 0.79 13.00

Significant

Dim

en

sion

s o

f

Mark

eti

ng

Inn

ovati

on

Innovation

Management

2.28 2.05 Significant

Innovative activities -0.2 -1.08

Significant

Cognitive factors 0.82 7.96 Significant

The results obtained using structural equation modeling indicated that "education-

promoting" elements with factor loadings (0.87) has the highest and "policymaking" with

factor loadings (0.79) has the lowest correlation with latent variables "Dimensions of

marketing innovation." Moreover, “innovation management" with factor loadings (2.28) has

the highest and “innovative activities" with factor loadings (-0.2) has the lowest correlation

with hidden variable “marketing innovation." Table 4: Measures to assess overall fit of the structural model

Row Index Value Desirable level status

1 X2 739.34 - -

2 Df 428 - -

3 P 0.12 0.05> Desirable

4 X2/df 1.72 3> Desirable

5 RMSEA 0.044 0.05< Desirable

6 GFI 0.8 0.9< Relatively desirable

7 AGFI 0.77 0.9< Relatively desirable

8 NFI 0.95 0.9< Desirable

9 CFI 0.98 0.9< Desirable

10 RMR 0.053 Closer to Zero Desirable

A total of 10 indicators to measure the structural model, 8 are in good condition and only 2

indices AGFI and GFI are in relatively good condition. According to the results, it can be

stated that the overall fit of the structural model is in good condition. In other words, the

quality of the overall fit of the structural model estimated is as appropriate.

4- Discussion and conclusion

Management factors have an impact on marketing innovation of date business clusters.

This result is consistent with many studies such as Mousavi et al (2015), Soltani et al

(2013) and Mumtaz Baloch and Gopal Thapa (2014). It seems that the development of a

strategic plan by the manager, getting advice from marketing experts by the manager and

using specialists can pave the ground for marketing innovation in marketing innovation of

date business clusters.

Social factors have an impact on marketing innovation of date business clusters. This result

is consistent with studies such as Moreira et al (2015), Ommani (2015), Mumtaz Baloch and

Gopal Thapa (2014). It seems that the improvement of date consumption Cognitive in the

community and considering the need of the consumer can provide the grounds for

marketing innovation in date business clusters.

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

30

Economic factors have an impact on marketing innovation of date business clusters. This

result is consistent with different studies such as Moreira et al (2015), Saafi Sis et al (2014)

and Ghane (2014). It seems that regulating the pricing of date, narrowing the gap between

wholesale and retail prices, and creating financial incentives, price adjustment, and

processing industry on the market could pave the ground for the creation of marketing

innovation in dates business clusters.

Policy making factors have an impact on marketing innovation of date business clusters.

This result is consistent with different studies such Mousavi and Farajollah Hosseini(2014),

Soltani et al(2013) and Moreira et al (2015). This result suggests that the adjustment of the

agricultural sector in relation to the date and manner of its exports, improving marketing

research and complementary industries and increasing the capacity of the Union of date in

protecting the rights of its members can lead to innovation in date business clusters.

Participating in educational-promotion courses has an impact on marketing innovation of

date business clusters. This result is consistent with different studies such as Moreira et al

(2015), Saafi Sis et al (2014) and Mumtaz Baloch and Gopal Thapa (2014). This result

suggests that holding educational courses for managers for familiarity with marketing

firms, and specialized training programs for managers of enterprises, increasing

advertising and marketing courses in innovative thinking can lead to innovation in date

business clusters.

Findings of structural equation modeling showed that cognitive factors have a significant

positive correlation with latent variable "aspects of marketing innovation." Several studies

such as Moreira et al (2015), and Mumtaz Baloch and Gopal Thapa (2014), Ommani (2015)

support these findings. This result suggests that creating a comprehensive and holistic view

towards creating new markets and to deal with strategic inertia (attachment to the

previous strategies) could be the way to develop innovative marketing programs for

managers and owners to attend workshops in competitive markets.

Findings of structural equation modeling showed that the management of innovation has a

significant positive correlation with latent variable "aspects of marketing innovation."

Various studies such as Mousavi and Farajollah Hosseini (2014), Soltani et al (2013) and

Mumtaz Baloch and Gopal Thapa (2014) support these findings. Based on these findings, it

appears that investment in research and development, the relationship between managers

and owners of manufacturing firms and research centers, implementation, development

and enhancement of the quality management system in the company increase the

production capacity of the firm through knowledge management.

Suggestions

From delving into research, especially its analytical results, some recommendations can be

given especially with regards to policy making, promotion-education, and infrastructure,

social, economic and administrative issues as follows to promote innovation in the field of

date business marketing innovation clusters. Achieving some of these goals and improving

educational programs to encourage authority in business workshops in the field of

marketing innovation of date business cluster should be paid attention to by the authorities

and other stakeholders in the agricultural sector so that the managers who are members of

date business cluster could improve work situation in the field of marketing innovation

boost it from lower and average levels to higher ones.

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

31

Since 84.7 per cent of producers are less than 50 years old, and on the other hand over 60

per cent of producers have less than 5 years' experience of manufacturing dates, it is

recommended that Dried Fruits and Dates Union take advantage of people with experience

and expertise in date production as the advisers of the workshops. Moreover, as 92.9

percent of producers have secondary level and lower in terms of education, it is

recommended that higher education institutions (such as Scientific-Applied University and

agriculture training centers and Agricultural Jihad), like other courses that have been

required for the regional market and have also been established in these centers, try to

create date production and marketing major, because date is the most strategic garden

product of Khuzestan and has always brought good exchange for the country.

The results showed that there is a significant positive correlation between management

and innovation dimensions of marketing of date business cluster, so it is recommended

that by developing a proper strategic planning and marketing strategy, along with the

acquisition of advice from the experts and using specialists forces, they should enhance

their innovation capacity and while reducing production costs, create new demand for

production units.

Instability of marketing policies, illiteracy and lack of information of business owners about

legal and business issues have caused date production workshop managers of Khuzestan to

act weakly in the field of date marketing research and complementary industries and not be

able to use modern methods of marketing. Accordingly, it is recommended that Dried Fruits

and Dates Union act more strongly in support of its members rights and by creation of

active marketing units to monitor and educate about harvesting, packaging, grading, and

transport to improve product exports for producers and producers be able to brand their

products.

Due to the instability of export earnings from dates because of the fluctuations in the

demand for this product in Iran, by taking measures such as holding training-promoting

classes in various stages of production (planting, maintaining and harvesting) for managers

of workshops and date growers and by providing the required inputs such as pesticides and

fertilizers by Agricultural Jihad pave the ground for the production of higher quality

product so as it can compete in new competitive markets and obtain appropriate market

favor, and thus increase the demand for it.

With regard to the fact that in the present system of marketing the most interests is

obtained by dealers (wholesale-retail and reseller) resulting in less revenue and profit for

manufacturers that causes reduction of the incentive among producers and on the other

hand, the date price increases much higher than the marketing costs on it, government and

policy making organizations can establish marketing and distribution cooperatives of dates

business clusters with the cooperation of member producers in Khuzestan and thus reduce

the retail price and the marketing margin. Moreover, timely announcement of guaranteed

purchase rate and cash funds for date producers can create the ground for the removal of

profiteers and speculators and avoid the drop in prices at the farm.

Iran dates due to the variety and uniqueness of different species and some of its types in

world-class, which from the experts' perspective is of high quality, after processing and

export marketing, due to the failure of the distribution tool and shortcomings in

presentation, packaging and advertising, marketing efficiency is low. Thus, rival countries

in the region that are major producers of palm get the upper hand in exports and gaining

Designing Marketing Innovation Model of date Business Cluster in Iran

Hekmat et al / Argos Special Issue, 2016 part 2/pp. 21-32

32

higher advantages, and to survive in the global and international markets, Iran has to

lower the prices to preserves the possibility of export for manufacturers.

References

1) Ghane, S. (2014). Resume of Iran Date Market And Its Potential To Enter The

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