A model for Catch Up in Downstream Petrochemical Industries in Iran

Kazazi, Abolfazl; Eftekhari Targhi, Hasan; Amiri, Maghsoud; Ghazinouri, Seyed Soroush

doi:10.22050/ijogst.2024.457630.1711

A model for Catch Up in Downstream Petrochemical Industries in Iran

Document Type : Research Paper

Authors

Abolfazl kazazi ¹

Hasan Eftekhari Targhi ²

Maghsoud Amiri ¹

Seyed Soroush Ghazinouri ³

¹ Professor, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

² Ph.D., Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

³ Associate Professor, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

https://doi.org/10.22050/ijogst.2024.457630.1711

Abstract

The downstream petrochemical industries possess a significant competitive edge. Leveraging raw materials from the petrochemical sector, these industries are capable of manufacturing products that are both high in quality and low in maintenance requirements, thereby holding a substantial competitive advantage. Consequently, they present a promising avenue for bolstering the economic expansion and progression of the nation. Accordingly, the objective of this research is to formulate a strategic framework for advancement in Iran’s downstream petrochemical industries.

The research’s statistical universe encompasses the downstream sectors of Iran’s petrochemical industry. A dual-methodology approach, encompassing both qualitative and quantitative analyses, was employed to conduct the study. Within the qualitative domain, a thematic analysis was undertaken, which involved a foundational review of the extant literature and the procurement of insights from fifteen subject-matter experts through purposive sampling. The findings delineate a framework for expediting catch-up in Iran’s downstream petrochemical industries, comprising ten elements of capability enhancement, twenty-eight factors constituting windows of opportunity, twelve components delineating strategies and trajectories, and ultimately, fifteen elements indicative of success.

In the quantitative segment of the study, the Fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) method was utilized to scrutinize the interrelations among the various components. This analysis was informed by the insights of five deliberately selected experts. The outcome of this inquiry revealed that abundant resources and requisite feedstocks are paramount in their influence on capabilities and potential.

Regarding the windows of opportunity, it was discerned that the expansive domestic market exerts the greatest impact. This factor is particularly influential in the context of alternative production paradigms, such as virtual or factory-less manufacturing. In culmination, predicated upon a consensus among experts and the most salient indicators, the strategy of virtual or factory-less production was advocated as a means to expedite catch-up in the downstream petrochemical industries.

Highlights

The petrochemical downstream industries possess a significant competitive edge within the market;
Considering the “windows of opportunity” framework demonstrates that the expansive domestic market exerts the greatest impact on growth potential;
The adoption of a virtual or factory-free production strategy is proposed as an effective method to expedite the catch-up process in these industries;

Keywords

catch up

downstream petrochemical industries

Virtual production or no factory

Subjects

Management

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