Iranian communities e-business challenges and value proposition design

Abstract

Purpose This paper aims to identify and examine the internal and external factors that e-business communities in Iran grapple with within value proposition design. Design/methodology/approach Although the world and global economy have been vastly affected by the financial crisis and the competitive market, most businesses and trade lines are growing significantly by the power of online marketing and e-trades. However, this process is somehow different in the Iranian market. Using literature review and combining it with the casual-comparative method, this study first reviews the literature on the business model and value proposition design and then shows the main challenges Iranian entrepreneurs face in starting their e-business, especially at the time of severe economic, political sanction. Findings This paper attests to two categories of external and internal obstacles to entrepreneurs in the country. Some internal challenges point to obstacles and problems such as poor infrastructure in technology and network equipment, the security of personal data exchanges, improper infrastructure, including the speed of the internet and its bandwidth limit and lack of programming expertise. In the case of external barriers, this paper addresses the economic sanctions and restrictions that have been imposed on internet businesses. Originality/value In this study, the authors intend to identify the challenges of internet businesses in Iran and provide effective solutions for creating new value propositions resulting in rapid and sustainable economic growth.