The Feasibility of Productivity Improvement Using the Approach of Virtual Economy

International Journal of Economics and Financial Issues ISSN: 2146-4138 available at http: www.econjournals.com International Journal of Economics and Financial Issues, 2017, 7(3), 371-376. The Feasibility of Productivity Improvement Using the Approach of Virtual Economy Samira Ranjbar1*, Ali Esmailzadeh Maghari2 Islamic Azad University, Islam Shahr Branch, Iran, 2Islamic Azad University, Islam Shahr Branch, Iran. *Email: 1 ABSTRACT Given the crucial role of e-commerce to create knowledge-based economy, it can be called the most important context to enter the virtual economy. Increasing growth of e-commerce in developed countries and its competitive advantages as well as its important role in employment and production growth in the countries indicate that those countries have revised their current trade policies. The primary goal of this study is to investigate the relationship between productivity improvement and virtual economy. For hypotheses test, Pearson correlation coefficient and SPSS software were used. Summary and conclusion of research hypotheses suggest that there is a significant relationship between improving productivity and virtual economy, so all research hypothesis are confirmed. Keywords: Productivity Improvement, Virtual Economy, E-commerce, Pearson Correlation Coefficient JEL Classifications: L81, O4 1. INTRODUCTION Given the crucial role of e-commerce to create knowledge-based economy, it can be called the most important context to enter the virtual economy. Increasing growth of e-commerce in developed countries and its competitive advantages as well as its important role in employment and production growth in the countries indicate that those countries have revised their current trade policies (Goldman, 2010). The development of virtual economy causes more people attracted to the virtual market. Institutions, organizations and private and public agencies all around the world intend to introduce their products and services on the internet (Brousseau and Chaves, 2004). Hence, the first requirement they face is referring to people with adequate knowledge and skills to carry out such activities. It is clear that no institution can be found free from virtual economy experts in the future (Sanayei, 2007). Virtual economy, as the intersection of information technology and business market, has provided a sustainable market for activity and employment of many people. Productivity is efficient and effective use of resources (labor - capital - land - material - energy - time and information, etc.) to produce goods and services that satisfy the needs and demands of users (Choi, 2001). Productivity, as the performance measure, means to use production inputs perfectly and minimize losses. Productivity has very effective factors by which the countries can achieve high positions in this field (Freund and Weinhold, 2000). On the other hand, prices of goods supplied on the Internet are lower than conventional stores. E-commerce is most likely to reduce the prices of goods and services that can be provided by digitalization or making the supply chain on-line (Freund and Weinhold, 2002). Also, the prices can be reduced in businesses with the possibility of increasing efficiency through reduced costs of production, reduced warehousing costs, and better supply chain management (Freund and Weinhold, 2004). Given that there has been no research on the relationship between virtual economy and its impact on the virtual economy indicators, the present study aims to examine it (Sakaran, 2007). The present study is an applied research; because it seeks to achieve a scientific objective and focuses on solving a problem. It also includes a set of methods that aim to describe the situation or phenomenon under study. In terms of methodology, it can be considered a descriptive survey. International Journal of Economics and Financial Issues | Vol 7 • Issue 3 • 2017 371 Ranjbar and Maghari: The Feasibility of Productivity Improvement Using the Approach of Virtual Economy 2. RESEARCH METHODOLOGY The relationship between productivity improvement and virtual economy in the present study is examined using library studies and literature review. The data of this study were collected from library and field study. Also, library method has been used for the collection and compilation of the literature and reviewing research background. For this reason, the books and articles in libraries and the Internet have been used. In the field study, the questionnaire is also used. The population of this research consists of all PhD and graduate students of management, economics, and accounting in University of Tehran, Allameh Tabatabaei, and Shahid Beheshti that is over 1,400 students. The sample size was determined 302 students based on Kurgisi and Morgan Table. 330 questionnaires were distributed and 302 of them were collected. 3.3. Research Variables Measurement Model Figures 1 and 2 show the confirmatory factor analysis results of components and the indicators of research variables using LISREL software. 3.3.1. Chi-square index (χ2) It shows χ2 statistic for the model. In fact, this index shows the difference between model and data that is considered as a standard for bad model. The less values of χ2 show the less difference between variance-covariance matrix of the sample and variancecovariance matrix of the model. It should be noted that the index depends on the number of samples taken. In fact, if the sample size is more than 200, the index tends to rise. The model fitness Figure 1: Correlation model of the research variables and their indicators in standard mode Statistical techniques used in this research are descriptive and inferential. In the field of descriptive statistics, statistical techniques such as frequency distribution table and bar; mean, mode, median, standard deviation and variance are used. Also in the field of inference statistics, Kolmogorov-Smirnov (KS) and Pearson methods are used. SPSS software was also used to perform calculations. For hypotheses test, Pearson correlation parametric test has been used. 3. RESULTS In this section of data analysis, the data normality is first evaluated using inferential statistical techniques and then research hypotheses will be examined. 3.1. KS Test Results To determine the appropriate statistical methods for data analysis and hypotheses test, the distribution of research variables in the sample must be studied at the first step. For this purpose, KS test has been used. Table 1 summarizes the test results. As the test results show, all variables of the samples follow a normal distribution (the significance level should be more than 0.05 for normal distribution of data). So parametric tests can be used to test the hypotheses. In the present study, Pearson correlation parametric test has been used for the hypothesis. 3.2. Confirmatory Factor Analysis Before examining relationships between variables, we must ensure the st (...truncated)