Qualitative System Dynamics Model for Analyzing of Behavior Patterns of SMEs

Abstract

In Iran, the Small and Medium Knowledge-Based Enterprises (SMEs), in the development and shaping stage, face lots of problems. Before maturity and stability, they fail. Nearly a decade has passed since the science and technology parks' formation. They were seen as a mechanism for sustainable economic development based on knowledge; through the creation, support, and guidance of founded SMEs. Iranian officials and policymakers are seriously concerned about the sustainable success, development, and growth of these SMEs, which must be appropriate for the needs of Iran. Identifying the behavioral patterns of the stages of life (birth, growth, decline, etc.), which lead to inefficiency and decline, is essential. This helps to avoid mistakes and eventually reduces costs. This paper, using participative model building, tries to extract prevailed patterns that govern the behavior of SMEs in Yazd Science and Technology Park. This paper attempts to introduce positive leverage points for policymakers and senior managers who are responsible and also for SMEs, which are located in the park. Therefore, in this article, while drawing the behavioral patterns of SMEs, using qualitative system dynamics modeling, the structure governing the behavior of SMEs was drawn. This structure consists of four reinforcing loops and eight balancing loops. Finally, based on these loops, 12 corrective policies were proposed.