An Interpretive Structural Model for Improvement of Business Environment in Iran, Focusing on Legal Environment.

Business environment has a significant impact on performance of all enterprises, and thus affects economic development. According to the view of the majority of economic experts, Iranchr('39')s business environment is not in a good condition. Most of actions for its improvement are implemented without considering their components interactions and hence no success is achieved.Therefore,before any action, it is crucial that the components of business environement should be identified.The aim of this research is vast analysis of business environment elements and their interaction, Hence the context and business environement improvement is obtained. This research has identified 481 components of the business environment by examining 1751 international and domestic researches. Interpetive- Structural Modeling as a tool of soft operation reseach (OR), makes people and groups map the complex relationships among many elements in a complex decision making situation. In this research, by using Interpretive Structural Modeling we analysed intensity of influence, effects, direct and indirect effects and their dependency. The results of the research show that, the most influential component of business environment is legal environment. Hence, for improvement of legal environment and consequently Iranchr('39')s business environement patology and procedures of law making are mostly important duty of policy makers.