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IDPRP paper (Dr.Farahmand& DabbaghiSadr) 910921

  • Wednesday, July 26, 2017
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Infrastructure Development as Public Relations Procedures for Public Limited Companies


Dr. Nasser Fegh-hi Farahmand

Department of Industrial Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran


Dr. Mohammad Dabbaghi Sadr[1]

D.B.A. Strategic Management, Tabriz, Iran




The research studies were based on literature review and field data and information. Information was gathered from Internet, international research paper data banks, interviews and finally survey questionnaire. Careful examination of a collection of research papers showed related theoretical proposals and interviews and related indices, the elements and variables of the research were identified. The resultant collection consists of 7 elements as internal human resources, External human resources, Empowerment and Protection, Laws and Regulations, Technology, Trade Relations and Innovation. The results of statistical analyses of the mentioned elements and indices for each element and test results presented a meaningful relation between the inter-organization human resources, supporting, technology, trade relations and innovation with development and performance of public limited companies. Moreover, there is the same relation between the law variables and external human resources with performance of public limited companies.

Keywords: development model, Infrastructure, Public limited companies


1. Introduction

In spite its main role in the macro economy of the country and even the region, however nowadays faces the problems such  as sever increase in price of domestic and foreign raw material prices, entering the similar foreign goods, losing the experienced human resources, insufficient working capital, economic depression, inflation and being far from global manufacturing trends. The pressure of such problems makes the friendly production process to an unknown work cycle that seems more dangerous day by day. The growth rate of livestock industry, skin and slaughterhouses is low and incomparable. Actualizing the considered values in public limited companies obtaining added value, creating employment and industrial development besides the need for balanced development of public limited companies has direct relation with development of livestock, skin, slaughterhouse and public limited companies to complete its value chain.  Since developing livestock, skin and public limited companies have faced different problems. The products of the mentioned fields not only could not open a way to global markets, but do not have the capability of competing in domestic market either and generally continues its life with governmental short term supports. In spite of the policy makers’ special attention, the development of these industries has not achieved the international standards.


2. Development of industry infrastructures

The active companies tolerate both domestic and external problems and it deviates their way of development. The main goal of all trading companies of the world is to achieve the global capabilities, or in other words, to globalize themselves. In order to achieve the aim, organizations must raise their abilities to accepted standards and qualities. Undoubtedly, present organizations face widespread international threats by the appearance of new technologies and the short lives and changes. Hence, continuing the life for organizations need to find solutions and new methods to solve the problems.

The bed of development or the space and environment in which infrastructural elements are able to grow are of the same importance in development and main engines of infrastructure could be active if there is correct information about this space. Preparing development bed necessarily needs a short-term period. In the mentioned period, focusing the policies and preparing necessary beds for creating the bases of development is of special importance and could accompany the future activities in order to achieve the goals of development with desired pace. Skin is the only product that has accompanied human from the start. These elements guarantee the successful performance in organization in response to the necessity of a balanced approach towards technology, processes and individuals. Moreover, we have evaluated these elements, the results show that they could be raised, analyzed and to be performed in different markets. We could conclude that the overall evaluation of the experts was positive and selecting the key elements is the starting point for evaluating the strategy of implementing the elements of success in organization considering the systematic standard. The goal of any organization is to create, find and keep the costumers. Therefore, successful performance in organizations and necessity of maintaining a long-term relation with costumers is important.


3. Influential elements on development of industry infrastructures

The main reason of this importance goes back to the goals of the organization that nowadays has changed the methods of doing their work. Organizations have different approaches for successful performance in relation to their customers and new condition remains under the support of the customers. Some phenomenon such as human and organizations never intend to die, they desire to have relations with environment for development and progress, and therefore they look for new relations. These relations are not based on confrontation with the environment; however, they welcome the changes by having a general idea. Thus, external environment never makes human or organization to change, but human and the organization looks for desired future in its internal relations. The changes happen in human, organization and environment all together. Considering the review of the literature in the present research, 7 elements are summarized in the Table 1.


Table 1: Summarizing the seven key elements in research method


Inter-organization human resources

Human resources, out of organization




Trade relations


Ajdar & Dehghannezhadi (2009)








Shafiei (2000)








Madhoushi & NIazi (2010)








Sarvari & Kezazi(2010)
















PAiman PAk(2008)
























StanleyE. Fawcett, Matthew A. Waller and Amydee M. Fawcett(2010)








Enrique Minarro-Viseras, Tim Baines and Mike Sweeney(2005)








Fernando Peris Bonet, Carlos Rueda Armengot ,and Miguel A ´ ngel Galindo Martı´n(2011)








Syed Awais Ahmad Tipu, and Faisal Manzoor Arain(2011)








Roger Moser, Daniel Kern, Sina Wohlfarth and Evi Hartmann(2011)








Hung M. Chu, Orhan Kara, Xiaowei Zhu , and Kubilay Gok(2011)








Michel Marchesnay(2011)








Raj Kumar, Dixit Garg, and T.K. Garg(2011)









The present research is a fundamental and practical one, since the goal of the research is to collect, describes, analyze and offer a model; therefore, the research method is descriptive and statistical. In any statistical analyses, the necessary elements are called society. In other words, society refers to all possible observations that could be obtained by a test. Statistical society of the present research is factories and sectors of leather production in East Azerbaijan province and respondents are directors of the factories and leather sector. Collecting data from a part of the society is called sampling.


4. Analyzing the results

The sampling method of the research is systematic random sampling. Since we could not have access to all producers, the present method was used. In order to determine the sample volume Cokran formula is used. The statistical sample volume is 169 persons and in order to facilitate the work questionnaires were sent to 170 factories. 140 of the factories answered the questionnaire and 20 were not usable due to incomplete answers. 120 questionnaires were used in the present research. Qualitative and quantitative method was used in the research; first, the qualitative method was used to find the variables and influential elements in developing the industry and in the second stage, quantitative method was used approve that weather these elements and variables are of necessary justifiably and durability. In the second stage, the influence of these variables was recognized in developing the public limited companies (their influence coefficient). The study method of the research is library and filed study. The data gathering devices include internet, databases, international papers, interview and questionnaire in the last stage. In the library methods all dissertations, domestic managerial papers, special papers of public limited companies and papers of other databases such as Emerald and Science Direct are used. The present research is studying the development method for infrastructures of public limited companies of Tabriz. the researchers has prepared a questionnaire for studying the development infrastructure of leather  industry in two parts that first part includes questions in relation to individual identity of the answerers and second part has considered 179 case as the influential elements after studying the available literature for developing and improving the function of leather  industry. The functions were divided to seven groups and were evaluated in seven choice scale of Likret as follows:

Internal-organization human resources, human resources out of organization, support, laws, technology, trade relations and innovation

The descriptive statistics of the data in the present chapter first studies the anthropological variables age, education, etc. The second part includes descriptive statistics of the questions in questionnaire and analytical statistics are given in the third part. In the present study, Klomogrov-Spirnov test is used to analyze the normality of the variables and determining the type of the test for studying the data that results present the normality of the variables. In order to test the given model and finding suitable model for research, multi-variable regression is used. The tests of comparing the mean and variance analyses are used to study the influence of the anthropological variables in response to related questions of the hypothesis. In order to determine the gender of the sample individuals, one of the questionnaire questions asks in this regard as Table 2.


Table 2: The gender abundance of sample population of the research

Relative  abundance










As it could be seen in the table, 118 (98/34 percent) of the statistical samples are man and 2 (1/66 percent) are woman and it shows that there are low number of women who work in public limited companies. It shows that unfortunately this industry do not employ woman. It could be related to culture or lack of education in this regard. In comparison with developed countries, mostly women work in the final stages of production (painting, sorting and packing) that influences the quality of the leather. Unfortunately women are not used as work force in this field.

From educational standpoint, the statistical samples are classified to 5 groups. The following table shows their education level as Table 3.


Table 3. The education level of the sample population

Relative abundance








High school diploma



Associate course











As it could be seen in the table, around 20.84 percent of the population (25) are uneducated or less than high school diploma, 37.5 percent (45) high school diploma, 16.67 percent (20) associate course,  15.48 percent (19) B.Sc, 6.66 percent (8) M.Sc and 2.5 percent (3) PhD. Most of the research population was of high school diploma education level.

Considering the work experience, the statistical sample were classified in 6 group, table 4 shows their level of experience as Table 4.



Table 4. The work experience of the sample population


Work experience

Relative abundance

1-3 year



4-7 year



8-10 year



11-15 year



16-20  year



more than 20 years




As it could be observed from the table, 120 of the statistical sample around 25 percent (30) have under 1-3 years of experience, 25 percent (30) 4-7 years, 12.5 percent  (15) experience of 8-10 years, 14.16 percent (17) experience of 11-15 years, 15 percent (18) 16-20 years and 8.33 percent (10) have more  than 20 years of experience.

Most of the companies in public limited companies have less than 20 workers that show the smallness of these units. According to previous studies, in developed countries there are more than 50 workers in factories of this field. The laws and regulations of the governmental organizations with tanneries do not create the necessary facilities for development of infrastructures. More attention of tanneries in buying raw materials would depend on the standards of the leather production, need for innovation, observing the trade principles and reviewing the annual function. After analyses, interviews and considering the records of the research, the suggested model of the researcher showed that according to the gathered information through library studies and interview with experts of the field, the influential elements on public limited companies were recognized and since after data collection through tests first elements were in acceptable condition, an analysis was carried out. Table 9 shows that the suggested model is valid for development of the public limited companies. Table 5 shows that R2 is 0.989 and it shows that independent variables in the model form 98.9 percent of the variable changes in public limited companies. Considering the available scales this model is acceptable. Considering ANOVAs table, α of the table is 0.000 and F of the table is 648.128 that show its acceptance.



Table 5. Model validity degree

(Summary of the model)



R Square

Adjusted R Square

Std. Error of the Estimate






a. Predictors: (Constant), TECH1, support and empowerment, human, buy and sell, rule, innovation, external


5. Conclusion

The structure and method of the research was designed according to the suitable methods and research questions and research model was offered. In this part, the infrastructure relation of public limited companies and function of the organizations was understood completely. After collecting the information and classifying them, the analyses were carried out and according to the results and after summarizing we offer our suggestions. The suggested model is offered for development of public limited companies infrastructures using the extracted elements from the theoretical bases and experimental records and elements of the questionnaire.

The aim of the present research is to find a suitable model for infrastructure of public limited companies for improving the function of the organizations.

Our research is the first suggested model for development of proper infrastructure in public limited companies of Iran, thus it is not comparable with other models. Considering the effective role of human resources in development of public limited companies, presence of experts in public limited companies and educated professional and committed workers and personnel and the high education of the directors in producing units and familiarity of authorities in leather  related sectors  and supports, there would be better way for development of public limited companies infrastructures.

Since this sector has remained traditional, it reduces the pace of development in East Azerbaijan. Lack of update technology, low utilization of scientific experiences of the world, lack  of R & D and equipped laboratories in tanneries, not adapting necessary standards for raw skin from slaughtering to start of tanning and necessary standards for preparing the chemicals, and the related problems has lend to struggles in public limited companies.

Ignoring the managerial issues specially paying attention to main elements of marketing’s and procurement is most important problem of the field, since most of the producers lack any knowledge with this regard.



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[1] - Correspondence Author 

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