Environmental Influences on Business Practices

Abstract

The Iranian Business People are typically, considered skillful bargainers, savvy and successful. It is interesting to examine their business practices and their roots. Iran has been influenced by multitude of environmental variables. These have been acting, sometimes, in conflicting manners. Iran has had a well-established identity as a state for more than 2500 years, benefiting from a rich history: culture and tradition. At the same time the Iranian society is, at its roots, religious and extensively influenced by the shiite faith. For a song period the Iranian business people were traditionally being viewed as individualistic and non-conformist. the strong influence of the Shiite faith, however, pulled them to the other direction of obedience and conformism. Before the 1979 Revolution, the none-conformism approach prevailed. The revolution produced an wave of business nationalizations and since then, the public sector has dominated the Iranian Economy. The managers in this sector have transformed into conformist, preferring not to take unnecessary risks. Iran is currently in the midst of an ambitious economic reform and it is very interesting to follow the environmental changes in this country and their impact on the business practices of its people.