Identification And Prioritizing Cultural Factors Affecting The Realization Of The Knowledge Based Economy In Kermanshah Province

Document Type : Original Article

Authors

• ZeInab Siahpoosh ¹
• Sayed Mohammad Bagher Najafi ²
• Jamal Fathollahi ²
• yosef mohamadifar ³

¹ Master of Economics, Razi University

² Assistant Professor of Economic Department, Razi University

³ Assistant Professor of Management and Entrepreneurship, Razi University

https://doi.org/10.22067/erd.2021.18822.0

Abstract

1- Introduction
The realization of a knowledge-based economy requires appropriate cultural prerequisites. According to Stiglitz (Stiglit, 1999(, one of the first and most important issues is to provide cultural prerequisites and realize the effective cultural factors in this regard . In fact, cultural factors are one of the most crucial factors and prerequisites for transforming the economy of Iran and Kermanshah province into a knowledge-based, dynamic, persistent, capable, and competitive economy in the country. Therefore, this study used an institutional theoretical framework to identify and prioritize cultural factors affecting the realization of a knowledge-based economy.
2- Theoretical framework
 It is of high importance to have an appropriate institutional regime framework to facilitate interactions between different parts of the knowledge-based economy (Schiliro, 2012). The institutional regime consists of formal rules, informal (institutions) restrictions, and their executive characteristics (North,1996b). Informal institutions are the informal behavioral rules of society that are part of the culture.
3- Methodology
The most important cultural indicators affecting the realization of the knowledge economy were investigated and selected by referring to the previous literature and upstream documents and interviews with 14 experts in the field. Then, pairwise comparison questionnaires were completed by 20 experts, and indicators were extracted by Expert Choice. Finally, the indicators were prioritized by hierarchical analysis.
4- Results & Discussion
According to the results of the study:

Education as one of the most important elements of the knowledge-based economy accounts for the first priority (28%) among the top 10 indicators. Hence, it is necessary to have a skilled and educated workforce to provide efficiency, learning, dissemination, and application of knowledge, which leads to increased productivity of factors of production as well as economic growth and development (Chen & Dahlman, 2005). Among the components of education, primary education (56%) is the most important grade, whereas secondary education accounts for 18%, which indicates the major role of primary education in the knowledge-based economy. In fact, basic education strengthens the foundations of human capital by training the skilled and experienced workforce, resulting in the realization of a knowledge-based economy by creation a scientism institution and social capital.
Rationality: To achieve development in the knowledge-based economy, it is necessary to refer to reason and thinking and strengthen the rational and scientific attitude of rationality in society, because the production of science and knowledge relies on thinking and a rational approach. This indicator (14%) accounts for the next priority after education in terms of impact on the realization of the knowledge-based economy in Kermanshah province. Among the dimensions of rationality indicator, the most important dimension is the position of science and knowledge (24%) and the most important component of the dimension is scientism (30%).

3.Skill of Thinking skill: Development is an internal issue, a collective phenomenon, and an important goal that requires the highest degree of coordination and participation. In other words, there must be coordination and consistency in the thoughts and ideas for coordinating peoples' actions (Sariolghalam, 2007, p. 56). Therefore, harmonizing the thoughts leads to harmony in the actions of individuals, flourishes creativity and innovation, and ultimately enables the achievement of the knowledge-based model. This indicator (9.6%) accounts for the third priority.

The fourth indicator is justice (8.6%) with judicial justice as the most important dimension of the justice indicator. Moreover, the most important component of the judicial justice dimension is the fair implementation of laws. Justice affects the realization of the knowledge-based economy in two ways: 1) by creation equal access for all to public facilities, in particular, educational and health facilities, and ultimately, the realization of human development, which is one of the main institutional contexts for achieving a knowledge-based economy, and 2) by establishing equal conditions for all in order to attend a fair competition.
The ethics indicator (8.1%) accounts for the fifth priority, with the political dimension with the meritocracy component in the transfer of responsibilities as the most important dimension of the indicator. According to Williamson's four-level analytical framework, many of the ethical values affecting the realization of the knowledge-based economy, such as the emergence of informal institutions produce development at the first level. Informal institutions formed at the first level lead to the emergence of some rules at the second level. According to the rules of the second level, the proper management is accomplished at the society, and finally, the results obtained in the previous three levels lead to the realization of a knowledge-oriented society in the fourth level (Fathollahi et al., 2015).
Subjective culture (7.5%) and social order (7.4%) (the sixth and seventh priorities) play a role in the realization of this new production model. The most important component of subjective culture is the attitude towards learning science. Moreover, the most important dimension of the order indicator is legality and the most important component of the legality dimension is the remark for private property.
In addition, scientific independence (6.2%) and cultural interactions (6.2%) account for the same priority (the eighth and ninth priorities). However, the objective dimension of culture (4.6%) accounts for the last priority in terms of the effect on the realization of the knowledge-based economy so that mismatch rate of 2% also reflects consistency between the results.

5- Conclusions 
In general, since culture, knowledge transfer, values, ​​and other factors affecting behavior are defined from one generation to another through education and imitation, education by training skilled and capable people results in the development of rational attitude and changes in the attitude of people (North, 1990, p. 79). According to Max Weber, harmony in the attitude of individuals creates a kind of collective reason called rationality (Yeganeh & Labibi, 2011, p. 106). On the other hand, governing rationality in society leads to the establishment of social order and its stability.

Keywords

• Knowledge
• Culture
• Institution
• Knowledge Based Economy
• AHP

References

• References

  • Azimi (Arani), H. (2012). Iran's economy: Development, planning, politics and culture, Second Edition, Tehran: Ney Publishing. (In Persian).
  • Afjahi, S.A.A., TaghiPurfar, V., Azar, A., & Jafarpoor, M. (2014). Comprehensive Model of Organizational Justice Applying Islamic, Approach. Management Studies in Development and Evolution, 23(74), 21-47. (In Persian).
  • Ahmadi, A. A., & Salehi., A. (2011) .knowledge management, Publisher : Payam Noor. (in Persian).
  • Babaei Fard, A.( 2010). Cultural Development and Social Development in Iran. Social Welfare Quarterly,10 (37) :7-56.(In Persian).
  • Bedford, A.D. (2013). Expanding the definition and measurement of knowledge economy: Integrating triple bottom line factors in to knowledge economy index models and methodologies. Journal of Modern Accounting and Auditing, 9(2): 278-286.
  • Carlsson, U., Tayie, S., Jacquinot-Delaunay, G., & Tornero, J.M.P.(2008). Empowerment through Education: An Intercultural Dialogue, Publisher: Nordicom.
  • Chun, H.Y., Jiaxin, L.K., Ching, L.H., & Heng, T.J. (2017). Linkage between the Role of  Knowledge and Economic Growth: A Panel Data Analysis. Final Year Project, UTAR.
  • Chaharband, F. (2010). The role of basic education in the realization of knowledge-based economy in Iran, Master Thesis, Allameh Tabatabai University. (In persian)
  • Chen, D.H.C., & Dahlman, C.J. (2005). The Knowledge Economy, the Kam Methodology and World Bank Operations, World Bank Institute Working, Paper No. 37256, The World Bank Washington DC.
  • Dadshpour, H., & Yousefi., Z. (2016).Comparative Analysis on Knowledge-Oriented Development Process in Iran Regions, Journal of Zonal Planing, Volume:6 (23) .(In persian).
  • Eyvazloo, H. (2005). Justice and efficiency in adapting to the Islamic economic system, First Edition, Tehran: Imam Sadegh University .(In persian)
  • Fathollahi, J., Momeni, F., Elahi, N., & Najafi, S.M.S. (2015). Appropriate theoretical framework for understanding and analyzing economic issues in knowledge-based economy . Journal of the Knowledge Economy. 8(3), PP: 957-976.
  • Fathollahi, J., Nagafi, S.M.B., & Mosavi, M. (2015).To explain the relationship between moral values and economic performance in the age of knowledge-based economy, Islamic Economics & Banking, 4 (11).PP: 83-110. (In persian)
  • Hadad, sh. (2017). Knowledge Economy: Characteristics and Dimensions. Management Dynamics in the Knowledge Economy, 5(2), 203-225.
  • Khalilian, M.J. (1999). The role of values in the process of economic development, Comprehensive Portal of Humanities, No. 28.
  • Motusali, , & Najafi., S.M.B. (2010). Tools for Analyzing and Explaining Economic Problems from the Perspective of Douglas North, Quarterly Journal of Economics and Society, 6 (19), 81. (In Persian).
  • Motevasseli, M., & Fathollahi, J. (2010). Introduction To the Theories of Williamson and Its Application To the Development Issues in Iran. QJER, 10 (3), 25-52. (In Persian).
  • Motavaseli, M., Momeni, F., Lajevardi, R., & ranjbar, M.M. (2018). Rationality and Chaos in Planning: An Emphasis on Goulet's Theory of Rationality. Journal of Economic Research, 18 (69), 193-225.(In Persian).
  • Mo'meni, F. (2009). Achilles heel of development, economy and society, 6(19), 261-267. (In Persian).
  • Mahmudian, M.R. (2002). Ethics and justice, First Edition,Tehran: New design.(In Persian).
  • North, D.C. (1990). Institutions, institutional change, and economic performance.(M.R. Moeini, Trans). Third edition. Tehran: Country Planning and Budget Organization. (in Persian).
  • North, D.C. (1996b). Economic Performance through Time: The Limits to Knowledge, University Library of Munich, Germany Economic History.
  • Nurse, K., (2006). Culture as the Fourth Pillar of Sustainable Development, Small states: economic review and basic statistics,11, 28-40.
  • Nourouzi, N., & Kamali. (2009) .The Role of Libraries in Knowledge Society. Iranian journal of inf.ormation Processing and Management, 2 (10): 107-124.(in persian).
  • (1996). The Knowledge-based Economy, paris.
  • (1995). The Implications of the Knowledge-Based Economy for Future Science and Technology Policies, OCDE/ GD (95) 136.
  • Potts, J., & Cunningham, S. (2010). "Four models of the creative industries," Revue d'économie politique, Dalloz, 120(1),163-180.
  • Ramocka, M,.(2010). Culture as an economic growth factor. Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie, 16(2), 117-123.
  • Radwan, , & Pellegrini, G.(2010). Knowledge, Productivity, and Innovation in Nigeria: Creating a New Economy.The World Bank: Washington, DC,.
  • Stiglitz, J.( 1999). Public Policy For Knowledge Economy. (F. Momeni, & V. Ehsani. 2017, Trans.) Journal Strategic Studies of Public Policy, 7(23), 209-235. (In persian).
  • Sariolghalam, M. (2007). Rationality and the future of Iran's development, Edition: Fifth, Tehran: Center for Scientific Research and Strategic Studies of the Middle East. (In persian)
  • Sadiku, M. N.O., Nelatury, S. R.,& Musa, S.M. (2017). Knowledge Economy. Journal of Scientific and Engineering Research, 4(9):291-294.
  • Schiliro, D. (2012). Knowledge-based Economies and the Institutional Environment, Theoretical and Practical Research in Economic Fields (TPREF),3(05), 42-50.
  • Stiglitz, J. E. (1999). Public Policy For A Knowledge Economy. Remarks at the Department for Trade and Industry and Center for Economic Policy Research, 27(3),3-6.
  • Sepehrnia, R., Delavar, A., & Salehi Amiri., S.R. (2012).Study the relationship between cultural creative industries and promotion of cultural capital in Iran, Journal of Innovation and Creativity in Human Science,2 (5). (in persian)
  • Thurow, L.C. (2002). Creating wealth: the new rules for individuals, companies and countries in a knowledge -based economy, First Edition, (A. Kiavand, Trans),Tehran: Fara Publishing. (In persian).
  • Todaro, M. (2014).Economic devclopment in the third world.(G. A. Farjadi,Trans.), 22th edition, Tehran: Reflection: Higher Institute for Research in Planning and Development.(In persian).
  • Taghavi, M., & Mohammadi, H. (2006). The Impact of Human Capital on Economic Growth in Iran. Economic Research Journal, 6(22), 15-43.(In persian).
  • UNESCO (2012). Culture: a driver and an enabler of sustainable development: Thematic Think Piece. UN System Task Team on the Post-2015 UN Development Agenda.
  • UNESCO (2016). The Globalization of Cultural Trade: A Shift In Consumption. International flows of cultural goods and services 2004-2013. UNESCO Institute for Statistics.
  • Weber, M. (1904). The Protestant Work Ethic and the Spirit of Capitalism. .(A.M. Ansari, Trans). First Edition. The Organization for Researching and Compilation University Textbooks in the Humanities (SAMAT). Humanities Research and Development Center (1992).
  • Williamson, Oliver. (2002). The Economics of New Institutionalism: Past Achievements and a Look Ahead, (M. Motevasali, Trans ), Journal of Planning and Budget, 7(1), 3-41. (In persian).
  • Javadi Yeganeh, M.R, & Labibi, M.M. (2011). The Sociological View toward Social Order in Metropolises (A Comparative Study of Tehran, London and Bombay) Iranian Social Development Studies, 3 (3), 103-122. (In persian).
  Yazdanparast, Z. Seifi; A. Fallahi, M.A. & Karimzadeh.M (2015), "Empirical Test of Leader Theory in Iran's Foreign Trade Model", Quarterly Journal of Economic Research and Policy, Volume 23, Number 76. (In Persian).