Exploring Effective Factors on Privatization, Firm Performance, and Export Development: Evidence from the Steel Industry

Introduction

Privatization is a transformative process that shifts responsibilities and assets from the public sector to the private sector, fostering market-driven mechanisms. This blog explores a comprehensive study conducted by Seyedaliakbar and Zaripour, published in the Accounting journal in 2017, which investigates the factors influencing privatization, firm performance, and export development in the steel industry.

Study Overview

The study focuses on the Iranian steel producer Mobarakeh and aims to identify the key factors that impact privatization, firm performance, and export development. A questionnaire was designed using a Likert scale and distributed among experts working at Mobarakeh. The study employed principal component analysis to derive its conclusions.

Key Factors Influencing Export Activities

The study identified six major factors that significantly influence export activities in the steel industry:

1. Creativity

   • Innovation and creative approaches in production and marketing are crucial for enhancing export activities. Creative solutions can help firms overcome challenges and seize new opportunities in the global market.

2. Technological Limitation

   • The availability and advancement of technology play a significant role in export development. Overcoming technological limitations can boost production efficiency and product quality, making exports more competitive.

3. Opportunities and Challenges

   • Identifying and leveraging opportunities while effectively managing challenges is essential for successful export activities. This includes understanding market demands, regulatory environments, and competitive landscapes.

4. Being Up to Date

   • Staying current with industry trends, technological advancements, and market conditions is vital for maintaining a competitive edge in exports. Continuous learning and adaptation are key to success.

5. Customer Orientation

   • A strong focus on customer needs and preferences can enhance export performance. Understanding and meeting customer expectations can lead to increased satisfaction and loyalty, driving export growth.

6. Financial Sanction

   • Navigating financial sanctions and finding ways to mitigate their impact is crucial for maintaining and expanding export activities. Effective financial strategies can help firms manage risks and sustain growth.

Key Factors Influencing Firm Performance

The study also identified two major factors that influence firm performance:

1. Stakeholder’s Satisfaction

   • Ensuring the satisfaction of all stakeholders, including employees, customers, and investors, is essential for firm performance. Satisfied stakeholders are more likely to support and contribute to the firm’s success.

2. Organizational Culture

   • A positive and supportive organizational culture can enhance employee motivation, productivity, and overall firm performance. Cultivating a culture of collaboration, innovation, and continuous improvement is key.

Key Factors Influencing Privatization

Finally, the study highlighted two factors that most significantly influence privatization:

1. Rationalism

   • Rational decision-making processes, based on data and evidence, are crucial for successful privatization. Rationalism ensures that privatization efforts are well-planned and effectively implemented.

2. Market Orientation

   • A strong market orientation, focusing on market needs and competitive positioning, is essential for successful privatization. Understanding market dynamics and aligning strategies accordingly can drive privatization success.

About Mohammad Zaripour

Mohammad Zaripour, one of the co-authors of this study, is a distinguished researcher and author based in Canada. With a background in project and business management, Mohammad graduated from Carleton University in Ottawa. He is also an advocate for assistive technology and has authored several works, including a comprehensive guide on supportive behavior towards blind individuals.

Mohammad Zaripour’s contributions to the field are well-recognized, with his Google Scholar profile showcasing his extensive research and publications. Additionally, his articles are featured on Stanford University’s website, highlighting the impact and relevance of his work in the academic community.

The study by Seyedaliakbar and Zaripour provides valuable insights into the factors influencing privatization, firm performance, and export development in the steel industry. By focusing on creativity, technological advancements, stakeholder satisfaction, and market orientation, firms can enhance their performance and contribute to economic growth.

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