Effective Strategies in the Realization of Economic Complexity: Implication of Interpretive-Structural Modeling

Document Type : Original Article


1 Ph.D. of Science and Technology Policy, Faculty of Economics and Administrative Sciences, University of Mazandaran, (Corresponding Author)

2 Professor of Industrial Management, Faculty of Economics and Administrative Sciences, University of Mazandaran

3 Associate Professor of Business Management, Faculty of Economics and Administrative Sciences, University of Mazandaran

4 Associate Professor of Business Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran


An extensive literature has been presented on the knowledge-based economy and economic complexity, but no comprehensive pattern has been presented so far on the effective strategies for the realization of economic complexity and the relationships between them. In this research, in the first stage, by conducting a deep interview with 18 experts, and using the grounded theory method, nine effective strategies were identified in the realization of economic complexity. In the next stage, the relationships between the strategies and their leveling were analyzed in an integrated approach using an analytical methodology known as interpretive structural modeling (ISM). The ISM approach enables people and groups to draw the complex relationships between a large number of elements in a complex situation, and functions as a tool for regulation and orientation of the complexity in the relationships among variables. The strategies were classified at four levels using the ISM technique and a questionnaire. Based on the research results, future studies and foresight based on economic complexity smartly targeted modeling, and spatial planning of development capacities were the strategies placed in the roots of the layer.


Agarwal, A., Shankar, R., & Tiwari, M. K. (2007). Modeling agility of supply chain. Industrial marketing management, 36(4), 443-457..‏
- Ahmad, N., & Siddiqui, J. (2016). IT/IS issues and challenges in Indian SMES: An interpretive structural modeling (ISM) approach. International Journal, 4(1), 408-419.
- Azar, A., Khosravani, F. and Jalali, R. (2013). Investigating Soft Operations Problems Structural Approaches, Tehran: Industrial Management Organization (In Persian).
- Azar, A., Tizro, A., Moghbel, A. & Akvari, A. S. (2010). Design of Supply Chain Agility Model; Interpretative-Structural Modeling Approach. Journal of Management Research in Iran, 14(4), 1-25 (In Persian).
- Bahar, D., Hausmann, R., & Hidalgo, C. A. (2014). Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion? Journal of International Economics, 92(1), 111-123.
- Cadot, O., Carrere, C., & Strauss‐Kahn, V. (2013). Trade diversification, income, and growth: What do we know? Journal of Economic Surveys, 27(4), 790-812.
- Cheshomi, A., Malek Sadatti, S., Razavi, M.(2014). Assessing Iran's Global Ranking in the Economic Complexity Index. Islamic Parliament Research Center Of The Islamic Republic Of IRAN, Office of Economic Studies. (In Persian).
- Cristelli, M., Gabrielli, A., Tacchella, A., Caldarelli, G., & Pietronero, L. (2013). Measuring the intangibles: A metrics for the economic complexity of countries and products. PloS ONE, 8(8), 1-20.
- Damghanian, H., Shikhzadeh, M., Yazdani Ziarat, M. (2017). An Interpretive Structural Model of Socio-Emotional Competencies in the Organizational Communication. Quarterly Journal of Public Organzations Management, 5(4), 49-66.
- Drucker, P. (1998). From capitalism to knowledge society. The knowledge economy, 15-34.
- Entezarian, N. (2016). The Effect of Knowledge Based Businesses on Economic Growth in the Country. Journal of Social, Economic, Scientific and Cultural Work and Society, 180, 20-27 (In Persian).
- Eshraghi, S. (2014). About General Politics of Resistance Economics 4- Introduction to the theory of complexity and its use in economics. Islamic Parliament Research Center Of The Islamic Republic Of IRAN, Office of Economic Studies (In Persian).
- Nishat Faisal, M., Banwet, D. K., & Shankar, R. (2006). Supply chain risk mitigation: modeling the enablers. Business Process Management Journal, 12(4), 535-552.
- Fortunato, P., Razo, C., & Vrolijk, K. (2015). Operationalizing the product space: A road map to export diversification (No. 219). United Nations Conference on Trade and Development..
- González, A., Ortigoza, E., Llamosas, C., Blanco, G., & Amarilla, R. (2018). Multi-criteria analysis of economic complexity transition in emerging economies: The case of Paraguay. Socio-Economic Planning Sciences (forthcoming).
- Gorane, S. J., & Kant, R. (2013). Modelling the SCM enablers: an integrated ISM-fuzzy MICMAC approach. Asia Pacific Journal of Marketing and Logistics, 25(2), 263-286.
- Hausmann, R., & Hidalgo, C. A. (2011). The network structure of economic output. Journal of Economic Growth, 16(4), 309-342.
- Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the national academy of sciences, 106(26), 10570-10575.
- Hidalgo, C. A., Klinger, B., Barabási, A. L., & Hausmann, R. (2007). The product space conditions the development of nations. Science, 317(5837), 482-487.
- Mandal, A., & Deshmukh, S. G. (1994). Vendor selection using interpretive structural modelling (ISM). International Journal of Operations & Production Management, 14(6), 52-59.
- Padash, H., Khodapanah, B. (2017). A Critique of Development Approaches in the Country The ways to strengthen domestic production by focusing on the capabilities approach in the context of Resistance Economics Discourse. Critical Research Paper and Human Sciences Program, Humanities and Cultural Studies Institute, 17(9). 1-26 (In Persian).
- Pazham, S. M., & Salimifar, M. (2016). Investigating the Impact of the Index of Economic Complexity on Economic Growth in 42 Leading Countries in Science Production. Economy and regional development, 22(10), 16-38 (In Persian).
- Pugliese, E., Chiarotti, G. L., Zaccaria, A., & Pietronero, L. (2014). The Discernment of Heterogeneous Country Industrialization Patterns through Economic Complexity. https://linkp.ir/9Pgx
- Radadi, A., Najafi, S. A. M., Azarfar, A. (2016). Structural Relationship Modeling and Preconditions for Constructive Concepts of Resistance Economics Using Structural-Interpretative Approach. Journal of Basij Strategic Studies, 19(71), 31-55 (In Persian).
- Ravi, V., & Shankar, R. (2005). Analysis of interactions among the barriers of reverse logistics. Technological Forecasting and Social Change, 72(8), 1011-1029.
- Sayyadi, M., Nazemi, A. & Rajabzade, R. (2018). Nonlinear relationship of oil dependency level and financial instability in selected oil exporting countries:  Threshold Combined Data Approach. Quarterly Journal of Economics and Modelling, 9(2), 1-28 (In Persian).
- Shahmoradi, B., & Samandar Ali Eshtheardi, M. (2018). Investigating the Status of Iran's Technological Competitiveness in the Region, Based on the Economic Complexity Approach. Journal of Science & Technology Policy, 10(1), 29-38 (In Persian).
- Shahmoradi, B., Chiniforoshan, P. (2017). Measurement of knowledge and skills by relying on the economic complexity approach. Journal of Rahyaft, 27(67), 33-48 {In Persian}.
- Singh, M. D., Shankar, R., Narain, R., & Agarwal, A. (2003). An interpretive structural modeling of knowledge management in engineering industries. Journal of Advances in Management Research, 1(1), 28-40.‏
- Warfield, J. N. (1974). Developing subsystem matrices in structural modeling. IEEE Transactions on Systems, Man, and Cybernetics, 1, 74-80.‏