The analysis of silk industry development strategies: an application of SWOT-ANP model

The silk industry can play a significant role Iran's non-oil exports. In a situation where leaving the rural regions is an important concern in the country and causes imbalance in employment and income opportunities in urban and rural areas, it is necessary to pay attention to the survival of this industry. Therefore, it seems necessary to evaluate the possible strategies for the improvement and growth of the silk industry by identifying the effective internal and external factors in the industry and introduce the most appropriate one. The studies conducted so far regarding the silk industry have had an experimental approach and the introduction of a strategic framework for the development of this sector has not been considered. Considering the above-mentioned points and taking into account the study gap regarding the introduction of a strategic framework for the development of the silk industry, this study aimed at developing a strategic model for the silk industry in order to develop this sector.

In this research, in order to determine the priority of the proposed strategies for the development of the silk industry, SWOT analysis along with ANP was used. In this regard, a group of experts, by analyzing the external and internal environments of the industry, identified controllable and uncontrollable sub-factors affecting the success of this industry. The determined sub-factors have strategic importance. Using SWOT sub-factors, SWOT matrix and alternative strategies were formed. Therefore, the silk industry was recognized as an industry with four strategies, including: Strength-Opportunity (SO) strategies, which is the proper use of opportunities by exploiting the strengths of the industry; Weakness-Opportunity (WO) strategies, which seeks to properly exploit the environmental opportunities with respect to the industry's weaknesses; Strength-Threat (ST) strategies, which are related to reducing or eliminating the effects of environmental threats through the optimal use of the industry strengths; and finally, Weakness-Threat (WT) strategies, which reduce the effects of environmental threats by considering the industry's weaknesses. The intended steps for using the ANP model in this research were based on the proposed algorithm of Yuksel and Dagdeviren (2007). The intended statistical population included 36 experts, local officials and experts in the field of silk in Razavi Khorasan and Guilan provinces of Iran, and due to their limited numbers, all people were selected as a sample. The main tool of data collection was completing the questionnaire and all the collected information was obtained through the consensus of experts' judgments. The validity of the questionnaires as well as the reliability of its different parts was also examined using Cronbach's alpha method, which showed high reliability (0.78 and 0.91).

The concerned SWOT-ANP model consisted of four levels. The first level was related to choosing the best strategy and the second level was related to the main factors of SWOT analysis. The SWOT sub-factors were in the third level of the model; this level included six sub-factors for the strengths factor, six sub-factors for the weaknesses factor, five sub-factors for the opportunities factor and six sub-factors for the threats factor. Assuming the absence of mutual dependence between the main factors of SWOT, the matrix of pairwise comparisons of the main factors was formed by experts using a scale of 1 to 9, and by analyzing the matrix of paired comparisons, the weight vector (relative importance) was obtained. In the third step, the interdependencies between the main factors were determined by examining the effect of each factor on the other factor using pairwise comparison matrices. Interdependencies between the main factors tend to be obtained after analyzing the internal and external environments of the organization. So, in the next step, the interdependence weights of the main factors were obtained through the product of the dependence matrix of the main factors in the relative importance of the main factors, after normalization. After this stage, the relative importance of sub-factors of SWOT was obtained using the matrix of paired comparisons. The total weights of sub-factors were obtained by multiplying the weights of main factors by the relative weights of sub-factors. In the seventh step, the priority of alternative strategies was calculated according to each sub-factor of SWOT using the matrix of paired comparisons. According to the obtained weights, the strategy of rebuilding and strengthening the integration of Silkworm breeding in the silk value chain had the most weight and was chosen as the best strategy. Reconstruction of Silkworm breeding activities is aimed at reconstruction of the internal production of silk thread as the primary basis in the production of silk textiles. This will be achieved by strengthening investment in Silkworm breeding, increasing awareness of silkworm breeding and developing mulberry farms.

In this study, based on a strategic planning, strategies were presented for the development of the silk industry in the country so that economic development can be provided, especially in the agricultural sector. To this end, SWOT-ANP analysis was used. The four strategic goals presented in this research, are as follows: Strengthening the empowerment and institutional support of the silk industry; Facilitating market entry and strengthening high-value silk products; Developing skills and improving product quality, design and innovation in carpet and textile subsectors; and Restructuring and strengthening the integration of Silkworm breeding in the silk value chain. The results showed that the strategy of "rebuilding and strengthening the integration of silkworm breeding in the silk value chain" is chosen as the best strategy. Based on the study findings, forming a financing mechanism to support the development of this industry, providing a suitable model for increasing the scale of silkworm breeding, achieving larger vertical integrations among the actors, managing the commercial and production information related to silk production, implementing innovative business models and contract farming, and establishing a strong relationship with the textile and tourism industry in order to strengthen and create market opportunities are necessary and recommended.