International Journal of Economy, Management and Social Sciences, 2(12) December 2013, Pages: 991-995

TI Journals

International Journal of Economy, Management and Social Sciences

ISSN
2306-7276

www.tijournals.com

The Effects of the Financial and Administrative Factors on

University-Industry Interaction in Kohgiloyeh and Boyerahmad
Province, Iran
Hafez Parhazeh *
M.S. in Business Administration, Faculty of Management, Islamic Azad University, Naragh Branch, Iran.
AR TIC LE INF O

AB STR AC T

Keywords:

Development of technology is not enhanced by the performance of industries alone. Rather, it is

greatly affected by interaction of industries and universities and other related institutions.
Innovation processes is stimulated by relationship of industries with knowledge-creating
organizations such as universities, research and development institutes, and other industrial
departments. The present study attempts to examine the impact of Administrative and financial
factors on interaction between universities and industries in Kohgiloyeh and Boyerahmad province
located in Iran. In order to accomplish the objective, field study and library survey were conducted.
The main tool of the study was questionnaire. The theory of questionnaire was formulated on the
basis of library survey. The permanent residence in the concerned province and field observations
were, also, taken into consideration. 225 of 300 questionnaires distributed among industries and
universities of the province, were completed by respondents. The validity and reliability of
questionnaires were assessed respectively by face validity and Cronbachs alpha. Data analysis was
performed with SPSS software. The calculated value of T-test as well as the degree of significance
indicated the respondents view on the impact of Administrative factors on the interaction between
industries and universities and commercialization of university researches. As far as financial
factors were concerned, the value of 12.566 was calculated for T-test and degree of significance
was 0.000. From respondents viewpoint, therefore, financial factors had an impact on cooperation
between industries and universities.

University-Industry Interaction
Financial factors
Administrative factors
Kohgiloyeh and Boyerahmad Province

2013 Int. j. econ. manag. soc. sci. All rights reserved for TI Journals.

1.

Introduction

Interaction between university and industry has been made in three periods of history. The first period dates back to the end of 19th century,
in which research as a fundamental component bore relationship with training. The second period commenced after World War II and at the
beginning of 1970s. From the middle of 1940s and during 1950s, the interaction between university and industrial community was taken
into consideration for war and military stabilization and reconstruction, in addition to innovation and market competition. The advent of
new technologies imposed further requirements for the professional staff and the changing attitudes towards the basic and applied research.
The third period of university-industry interaction commenced from the beginning of 1980s. In the early 1980s, knowledge-based economy
was replaced with the industry-based economy. The new economy differed from industry-based economy i.e. development of technological
innovation and the economic competition in the world market required the industry to make further investments in research. In 1990s,
drafting and approving parliament bills for enhancing effective interaction between the university community, industry and government
gained wider significance in developed countries. At the beginning of The Third Millennium, the interaction between universities and
industries was considered as a Mechanism for technological innovation, producing new products, retraining of specialists, Job creation, and
global competitiveness [12]. At present, Organization for Economic Relation and Development (OECD) carry out firm actions in
developed countries on stimulating scientific activities. As this organization puts emphasis on the effective economic competition, it takes
scientific activities into serious consideration and regards the interaction between universities and industries more significant than before
[14].
In general, Literature on university-industry relations in Iran is based on two points, Methods for encouraging effective relation , and
Difficulties encountered by and restrictions imposed on higher education departments for making interaction with industry.
The relation between university and industry is an instance of formal agreements on scientific and investigative activities made between
universities and businesses. Such relation is usually offered for gaining access to and utilization of university researches and industrial
experiences [1]. In general, the interaction between universities and industries is done through official and unofficial agreements, through
which further successes can be gained [12]. In this relationship, university and industry attempt to participate in a number of joint activities
which they cannot undertake them alone (Ibid.). This tendency has been revealed in Iran in recent years. For instance, the relation between
universities and industries have represented considerable achievements on some grounds such as nuclear energy and petrochemical works,
* Corresponding author.
Email address: Hafez_parhaze@yahoo.com

Hafez Parhazeh

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Internat ional Journal of Economy, Mana ge ment and So cial Science s, 2(12) Dece mber 2013

yet such relation and research in Irans higher education are not as much encouraged as works done in developed countries. At the early
21th century, this encouragement is provided to the extent that knowledge is considered a strategic resource and superior to natural and
economic resources. And, response to demands of the public especially as regards technology occupies special place [7]. The present study
aims at examining the impact of Administrative and financial factors on mutual interaction between universities and industries. Clearly
speaking, it intends to help universities of In Kohgiloyeh and Boyerahmad province of Iran with commercialization of their findings,
stimulation of employment, and improvement of facilities in this region.

2.

Previous Studies

In U.S. ,Commercial bond between the university and the business world during civil wars and after it, Showed a trend of increasing. Yale
Report in 1828 was Evidence for this claim .According to this report ,after that America's higher education was questioned about traditional
curriculum, the trend towards the development of practical purposes in the curriculum was developed [11;8]. The emergence of the research
university model in Germany is a new form of academic rationality .As the result, in a course of time, many of such laboratories were set
up in known universities such as Massachusetts Institute of Technology and University of Michigan. Such attempts formed the first close
business bond with industry as the first partner of universities in U.S. and Europe [10].
The history of commercialization of research findings in Iran which is formed in terms of interaction between universities and the
institutions being unrelated to university can be grouped under the following periods: (1) the period from the first-established university to
1961, within which a number of informal interaction occurred but did not satisfy the demands of industrial units, (2) the period from 1961
to 1982, within which new universities were established in Tehran and other big cities and students required urgently to gain information
from industrial units, and (3) the period from 1982 up to now, within which Cultural Revolution Council was formed and a number of
university-industry interaction offices were administered in Ministry of Culture and Higher Education, industry-related ministries and
universities. [2]
Soltani (2005) studied the impact of science and technology parks on development of research culture and promotion of relation between
university and industry. His findings revealed that sustainable development of the urban society and organizations in all aspects requires a
sustainable, endogenous mechanism in which urban ways are preferred over rapid benchmarking and shortcuts. Urban ways are found by
conducting studies and the application of their findings to the related areas of concern. The localization of studies in the urban society and
organizations is required to be built on structural, culture and human foundations.
The study done by zargar et al (2010) on the impact of university-industry interaction on development of technology revealed that the
effective relation between university and industry is considered as one of fundamental principles for technology transfer and development.
Moreover, a conceptual model is provided, in which the variables and dynamisms making impact on the mutual relation between
universities and industries are displayed through causal loop diagrams and system dynamism modeling.
Mahdavi and Alemzadeh (2008) in their study, investigated history of relation between universities and industries in Iran and some other
countries such as Swiss, Japan, China and South Korea, and then described the need for industry-university relationship and its limitations.
In their research, in addition to the significance and shortcomings of interaction between universities and industries, suggested a number of
solutions which are as follows:

Science and technology parks,

Promotion of academic degree of professors Based on their cooperation with industry
Changing courses and lessons headlines with the intervention of Industry
Awarding students accredited degrees for carrying out investigative works in industry
Raising government sponsorship for making contracts between universities and industries

Baloochestani (2007) put emphasis on globalization and management of changes in technology of information and their impacts on the
interaction between universities and industries. His study indicated that countries in which management of changes and developments are
done for employing technology of information and building its foundations favor full development and grasp more welcome opportunities
for employment of information technology and generation of new scientific ideas. Furthermore, as they access information with ease of use,
they dynamically organize academic and industrial departments. Such attempt encourages quality of education and effective relation
between universities and industries.
Grady (2002), in his thesis, pointed out that the interaction between universities and industries for the commercialization of research
findings leads to cultural clash and resistance of some researches against the market. His study population consisted of the researches of
medical colleges in Western Canada. A combination of ANOVA and CHEW tests were utilized in order to put them under different groups
on the basis of the studied department. The findings of his study, being recorded on the basis of Hierarchical Moderated Regression
Analyses, suggested that personal reasons create the most impact upon the cultural clash and the tendency of researchers towards the
commercialization of their research findings. Furthermore, the impact of environmental factors as the narrower focus of attention than
personal factors is required to be taken into serious consideration.
Kutinalahti (2005) suggested that universities in the new millennium stimulated their activities in a finance-valued environment, on the
basis of which he studied the personal, college-related and university-related impact of business activities (teaching courses for which the

The Effects of the Financial and Administrative Factors on University-Industry Interaction in Kohgiloyeh and Boyerahmad

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Internat ional Jour nal of Economy, Mana ge ment and Social Sciences , 2(12) December 2013

tuition fees are received, the conducting joint researches between universities and industries and offering academic counseling) on freedom
for conducting research. 92 percent of respondents considered freedom on the choice of research topic, the methodology of research and
release of research findings as the most crucial requirements. Moreover, they considered decrease in research time and change of research
topic as the most important consequence of the commercialization of research findings. They were not concerned with the personal impact,
yet they were beset by the systematic consequence of the commercialization on research-conducting freedom in universities and colleges.
Noursina et al (2013) in their research studied the impact of factors of higher education management on university-industry interaction in
Tehran City and presenting a model in this field. They analyzed variables of social and cultural, structural, administrative, educational and
financial factors and prioritized them in both groups of industry and university. They found that the first priority of universities is social and
cultural factors, but in industries it is administrative component.

3.

Research Hypotheses

H1. Administrative Factors make impact on the interaction between universities and industries for commercialization of university
researches.
H2. Financial factors make impact on the interaction between universities and industries for commercialization of university researches.

4.

Methodology

Since Areas of studies on higher education are not covered by a sole organized scientific framework and they can not turn into a
quantitative science, scholars should choose a conceptual way; therefore, the interaction between scholars and a particular area of study
acquires great significance. In this method of research, the scholar attempts to heighten awareness of phenomena and subjects through
collection of information or employment of interpretive methods and to express his views on the basis of audience understanding. In
general, interpretation plays a significant role on studies related to humanities. Also, the methods for following procedures and making
interpretations enrich the casual understating of phenomena when a continuum of events from separate instances is taken into consideration.
The accumulated knowledge on interaction between universities and industries is examined through Meta Analysis Method by which
different findings are interpreted for formulating hypothesis. In this method, the findings of the scholar are based on the findings of other
scholars. In other words, the findings of different studies apply to discussions over the concerned area of study.
The present study was conducted with library resources and surveys. The analysis was carried out on the basis of information gathered from
library resources and surveys. In addition to library resources, questionnaires were the main material for collection of information [5]. The
permanent residence was taken up in the studied region, during which the required survey was dealt with.
The population was industries and universities of Kohgiloyeh and Boyerahmad province. Since big industries were limited in number, a
census was carried out instead of drawing sample. 21 factories out of 35 big industries participated in the survey. Other factories were not
inclined towards completing questionnaires because they went into bankruptcy, were closed down, or for other reasons were not willing to
cooperate. 150 questionnaires were distributed in these factories, of which 123 were completed by respondents. Census was, similarly,
conducted in universities because the number of universities in this small province was low. 150 questionnaires were distributed in 7
universities, of which 102 questionnaires were completed. Note taking and questionnaires were materials for information collection.
4.1. Validity and reliability of Research tools
The validity of questionnaires was assessed through face validity and the reliability through Cronbachs Alpha. In the face validity, the
scale of items and content of questionnaires were assessed on the basis of variables and the concerned area of study. In other words, neither
extra content and scale nor insufficient content and scale were included in questionnaires. The following steps were taken for confirming
face validity:

Conducting theoretical study on the effective factors of commercialization of university researches,

Establishing objective criteria related to the concerned area of study,

Creating initial version of questionnaires,

Distributing a number of initial version of questionnaires among the population of the study (in order to omit or correct ambiguous and
inappropriate items),

Conducting poll among experts in assessment of face validity, and

Offering the final version of questionnaires

Table 1. Reliability of Questionnaire Items through Cronbachs Alpha
Factors

Cronbachs Alpha

Administrative Factors
Financial Factors

0.75
0.76

Hafez Parhazeh

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Internat ional Journal of Economy, Mana ge ment and So cial Science s, 2(12) Dece mber 2013

The total reliability of questionnaire was 0.76 and was considered the mean of reliability for all factors. In this study, the analysis was
conducted through descriptive statistics indices and inferential statistics methods.

5.

Results and discussion

5.1. Testing hypotheses

5.1.1. Testing H1
Table 2. One-Sample T Test results of the effect of Administrative Factors on Interaction between Universities & Industries
T

Degree of Freedom

No.

Degree of Significance

Standard Deviation

Mean

-6.979

224

225

0.000

5.205

30.577

One-sample T test, as displayed in Table 2, was utilized for examining hypothesis 1. The calculated T value was -6.979 and the degree of
freedom was 224. As the degree of significance (0.000) was less than 0.05, it can be concluded that Administrative Factors have an impact
on interaction between university and industry and on commercialization of university researches.

Table 3. Independent-sample T-Test result of Difference between impact of administrative factors from the viewpoint of university and industry
Levine's test for equality of variances
Mean
Industry
University

Mean
Difference

Degree of Significance

Degree of
Freedom

T-Statistics

Degree of
Significance

F-Statistics

0.411

0.556

223

0.589

0.290

1.125

30.764
30.352

The different views of respondents in university and industry about impact of Administrative Factors were determined by independentsample T-test. As seen in Table 3, the degree of significance for F (0.290) indicated equality of variances. If the assumption about equality
of variances is accepted, then the value of T (0.589) with degree of significance (0.556) is greater than degree of significance related to
Alpha (0.05). As the result, the respondents in universities and industries did not convey different views about impact of administrative
factors.
5.1.2. Testing H2
Table 4. One-Sample T-Test results of the effect of Financial Factors on Interaction between Universities & Industries
T Value

Degree of Freedom

Numbers

Degree of Significance

Standard Deviation

Mean

-12.566

224

225

0.000

4.408

26.306

Hypothesis 2 was examined through one-sample T-test. As displayed in Table 4, the value of T was -12.566 with degree of freedom 224.
As the estimated degree of significance i.e. 0.000 was less than the value of Alpha 0.05, it was revealed that financial factors affected the
interaction between universities and industries and commercialization of university researches.
Table 5. Independent-sample T Test result of Difference between impact of Financial Factors from the viewpoint of university and industry
Levine's test for equality of variances

Industry
University

Mean

Mean
Difference

Degree of
Significance

Degree of
Freedom

T-Statistics

Degree of
Significance

F-Statistics

26.951
25.529

1.421

0.20

179.890

2.350

0.001

11.577

In order to explore financial-parameter impacts from viewpoints of university and industry respondents, independent-sample T-test was
carried out. As shown in Table 5, the degree of significance related to F established equality of variances. As the result, if the assumption of
equality of variances is accepted, then the calculated T-value i.e. 2.350 with degree of significance 0.20 is less than that of Alpha value i.e.
0.05. These findings demonstrated that the respondents expressed different views about the impact of the financial factors on the relation
between universities and industries.

The Effects of the Financial and Administrative Factors on University-Industry Interaction in Kohgiloyeh and Boyerahmad

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Internat ional Jour nal of Economy, Mana ge ment and Social Sciences , 2(12) December 2013

6.

Conclusion

The commercialization of university researches and technology resulted from research and development is considered as one of main
functions of an entrepreneurial university. Commercialization is a process through which innovation, knowledge and technology help the
market with manufacture or improvement of goods and services. As the result, the potentials of knowledge, technology, and innovation are
fulfilled. The present study aimed at examining the impact of administrative and financial factors in this regard. As regards the hypothesis
1, the respondents agreed with the view about the impact of Administrative factors on interaction between universities and industries. They
did not reflect significant difference about the degree of management impact. With respect to the second hypothesis, the respondents put
emphasis on the impact of financial factors on interaction between university community and industry community. No disagreement on the
degree of financial-parameter impact expressed by them.
One of major difficulties in interaction between universities and industries of Kohgiloyeh and Boyerahmad province is the administration
of universities, as directly observed during this study, because the interaction of universities with other institutes and organizations is very
limited and administrative barriers are not overcome. The universities are required to enrich their understanding of the real demands of
customers, i.e. industries which are capable of fulfilling potentials. Also, research managers can be selected from prominent scholars taking
strategic attitudes. Last but not least, further financial resources should be allocated to the interaction offices of universities and industries.

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