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Research On Cooperation Models And Strategies Of Chinese And Iranian SMEs Under International Political And Economic Situation With The Sanction

Posted on:2019-12-11Degree:DoctorType:Dissertation
Country:ChinaCandidate:Full Text:PDF
GTID:1369330596451698Subject:Management Science and Engineering
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Iran and China have built and maintained a strong relationship with each other over the last two decades as both countries have mutually benefited from the relationship.The countries see each other as complementary;also,China and Iran enjoy an extensive economic relationship despite USA and some western countries guided UN Security Council with the sanctions related with Nuclear Issue.However,it seems there are more rooms for cooperation especially by more involvement of SMEs.Access to the accurate information in a short while and cooperation among SMEs is necessary for creating a good and reasonable cooperation between two nations SMEs.As the main question of thesis is looking for the suitable models and strategies of cooperation between Chinese and Iranian SMEs under current international and political situation and with the sanction,and how we can arrange and develop the(first)stable and continues deal/s between the SMEs of Iran and China under the current international and political situation.This thesis uses Mercadex–Desjardins Model represented by Jean Paul David,which accordingly there are three levels of integration into foreign countries for SMEs: delegation,cooperation and control.The means of approaching the foreign country can be further divided into three elements that mean company can adopt a transactional,contractual or structural approach.The superposition of the two axes-three levels of integration and three means of penetration results in a matrix containing nine generic internationalization options for SMEs which will be our main theory model of study used as analytical tool in this thesis.According to the thesis topic,a combination of assessment,analysis,case study and experiences are used to choose the suitable models and strategies from analyzing process of Mercadex–Desjardins Model.This thesis has been specified criteria and variables can play a significant role in determining the integration level of small and medium-sized enterprises and their influence in foreign countries.Therefore,it has been done both quantitative and qualitative survey to identify the variables and criteria which affects to choose the suitable models and strategies of cooperation in the first step and later by qualitative approach and comparing the existing models of cooperation between Iran and Chinese SMEs and as well as other nations,how it can select the suitable ones and provided the advises how to establish the first stable and continues deals between the two sides and maintain it properly.With the qualitative and quantitative research methodologies,this thesis has made theory and strategic analyses based on the survey in two nation's SMEs and case study,and the results of the thesis are as following.1-It has found out that some independent variables such as economic and political situations,SMEs cooperation intention availability,customer attraction strategies,business technologies improvement,payment methods improvement,optimal mutual meetings,and economic-political complementary of two courtesies have significant relation with choosing suitable models and strategies of cooperation between Iranian and Chinese SMEs under current the Sanction time.2-Ranking of the above seven variable mentioned on choosing suitable models and strategies of cooperation between Iranian and Chinese SMEs are economic and political situations and then to SMEs availability,business technologies improvement,optimal mutual meetings,economic and political complementary of two countries,payment methods improvement,and customer attraction strategies.3-Some important issues such as finding proper and reliable partners,Trade financing and payment issues,looking for potential and attractive business opportunities,convey properly their demand and inquiry to other side,decreasing the transactional cost by cutting the hands of middle man and etc.,maintain a mechanism to decrease the lack of confidence to other party will definitely increase the cooperation between Iranian and Chinese SMEs.4-Imposed sanction by western countries against Iran which affects the Banking issues,international insurance benefiting,transportation,sourcing and sources availability,Lack of confidence to the other trade partner,increasing international transportation cost,Global and national economic crisis,Unexpected exchange rate fluctuation in both countries,instability in trade laws and regulation are most important obstacles and barriers for increasing of cooperation between Iranian and Chinese SMEs in last decades and even nowadays.5-The journey of the thesis has been out of nine model analyses for SMEs which introduced by model of Marcadex-Desjardins,the proper and acceptable form of cooperation in priorities for increasing the cooperation between Iranian and Chinese SMEs were:A)Selling and buying according to the accepted trade contract,B)Getting agency or appointment an agent,C)Establishing joint venture with trade partner.After removing sanction or within the time that sanction has been weakened in which there is less restriction on banking relation and logistic and insurances services as well as less doubt and uncertainty in future,according to the characteristics and features of SMEs both in Iran and China which have been found in this study,it is predictable that some other business models and cooperation strategies will be applied.Due to the economic complementarily of two countries and capacities which will be operational after sanction removal,most of business cooperation models based on models introduced by Mercadex–Desjardins should be selected among the Models which applied extension of the time line for the company business project in one side(totally there are two sides,one is the integration and other is penetration means)and company increased involvement in the other side.it means that most of business owners and SMEs directors prefer to apply highest level of integration in the other country such as applying the control instead of cooperation or delegation and also the highest level of penetration in the host country such as structural way of cooperation instead of transactional approach.In such way some business models of acquisition of foreign direct investment,joint venture,BOT and buyback,original equipment manufacturing(OEM),franchise licensing could be applicable after removing the sanction beside of the other business models of cooperation which was taken in consideration during the sanction time6-It has introduced opportunities for cooperation after removing sanctions for both sides SMEs.It has also pointed out there are six groups of opportunities which could explore and implement between SMEs of two nations after removing sanction.The six categories of cooperation are investment finance,trading and technology and high tech,Services and one belt and one road initiative is suitable to explore.It has deeply explained which field is more suitable in these six categories.7-Due to the complexity of the sanction,even there is no intention to deeply involved,but some regional important conflicts and crisis,which could be affecting to continuity of the sanction and also the future of peace and prosperity in the Middle East and Persian Gulf as well as economy and commercial stability and bilateral and multilateral relations between nations in the region should be consider.Electing of Trump as new president of United States,Syrian crisis,Qatar conflict,Yemen crisis,Isis,Israel,Saudi Arabia conflict with Iran are affecting to the regional peace and national political stability in each country in region.Probably Iran will face a lot of challenges and obstacles for prosperity and bright futures as well which need more tough and hard job from both government and peoples.8-If sanction re impose we have two scenariosA)if other parties involved in Iran nuclear deal agreement keep their commitment and don't follow the united states new sanction on Iran then According to Mercadex–Desjardins model,we expect that SMEs of two countries to select any measures of cooperation which apply higher level of integration and higher level of penetration means.More contractual and structural methods of cooperation will be applied and integration levels will go toward cooperation,control,and supervision.For example,some models of cooperation like Distribution in the target company,Wholesale agent,Franchise licensing,Direct sales to a foreign customer,the Original Equipment Manufacturer,Production contract BOT will be applied.B)In other scenario,whether China,European and Russia cannot keep their word and could not stay more on agreement or Iran decide to withdraw from the agreement.it will be the worth situation.According to Mercadex–Desjardins model,we expect that SMEs of two countries to select any measures of cooperation which apply lower level of integration and lower level of penetration means.More transactional methods of cooperation will be apply and integration levels will go toward representation.For example,Outdoor trading,subcontracting for domestic export model will be applied.9-This thesis has also made a research about railway related business opportunities for two nations SMEs.Geographic speaking,the east north of Iran which has a big numbers of SMEs with great potentialities to do import and export with west and center and north west of China can apply the train railways and it is drew the economical borderline for rail transportation between Iran and China in order to help both SMEs is to get more,quicker,and efficient access together.With the development of China to Middle East block train,the trade between China and Middle East will increase and new cargo transportation means will be developed,which will benefit both regions.As the first destination is Teheran-Iran,both China and Iran business people will get more chance to do export and import business.Because China and Iran all have big railway system,the containers can easily transport to remote areas,both local SMEs can make use of such opportunities to develop wholesale and retail business in each area.This thesis has conducted a quantitative analysis with the investigation block train price data and China's government subsidies policy,which goes little bit further to draw an economic balance line between land transportation and sea way logistic means,the result of this research has been published in international journal for more inference.10-With the intention to make a little bit of contribution in business management research theory,this thesis has developed some analysis to Marcadex-Desjardins Model.That is to say,we need to consider environmental factors for SMEs to choose suitable strategy for internationalization,political situation and environment stability and instability will lead and push to choose different options for SMEs cooperation.It could be said that third axes is political situation for determination the cooperation strategy.It can be concluded that previously according to Mercadex–Desjardins Model,choosing the models and strategies of cooperation(Cm)was function of integration level(I)and penetration means(P): C m=F(I,P)However,know it could be stated that choosing the models and strategies of cooperation(Cm)is function of integration level(I),penetration means(P)and political situation(PO): C m=F(I,P,PO)This research has showed as the evidence to above formula related with Mercadex–Desjardins Model.11-In addition,it has introduced how to establish the first business deal by hiring the three business models that has concluded as the suitable way of cooperation between two sides and with the consideration of our experiences and knowledge of doing best.in this regard some new business model has been introduced too.It has provided some hints about how to reduce the doubt between entities and how to maintain and expand the business cooperation Between SMEs of two countries.There could be some misunderstanding in this research,but this thesis is the best result for my loved research in my efforts in China for at least 10 years,which reflects my deep thinking and reasoning.I do hope this thesis could give some practical hints for business people and scholars.
Keywords/Search Tags:business cooperation models, SMEs, political and economic sanction, Mercadex–Desjardins Model, Iran and China, railway-seaway balanced line
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