Research Article
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DEVELOPMENT OF A SUSTAINABLE BUSINESS MODEL FOR SMALL BUSINESSES USING DATA MINING

Year 2021, Volume: 7 Issue: 1, 111 - 144, 30.06.2021

Abstract

SMEs (Small and Medium-Sized Organizations) are the foundational structure of the Pakistani Economy. Irrespective of their type, whether they belong to a religious-based business structure or not, many are unable to build a sustainable model around themselves and thereby go out of business. Common reasons include being unable to balance the cash inflow and outflow while choosing projects with a long lifespan and little monetary rewards. The paper presents the integration of concepts from Data Mining techniques to help these businesses understand which areas they need to improve. Classic decision trees along with machine learning algorithms can be used to analyze data from SMEs to understand the aspects of their decisions and workflow which leads them to become unsustainable. An analysis of these decisions in the context of religious regulations and dealings shall be done to assess whether the adoption of a faith-based business structure can help a business not. The paper also presents a comparison between secular and non-secular business approaches from the lens of sustainability and relating it to the success and the failure of SMEs all around the world. A brief analysis of the selected organizations is also included in the paper.

Supporting Institution

Institute of Business Administration (IBA), Karachi, Pakistan

Thanks

During the process of writing this research paper, it was also presented at the 12th International Conference on Islamic Economics and Finance in June 2020.

References

  • Ali, A. (2018). State of Growth Barriers of SMEs in Pakistan: A Review based on Empirical and Theoretical Models. NICE Research Journal, 158-182.
  • Almoharby, D. (2011). The current world business meltdown: Islamic religion as a regulator. Humanomics
  • Anderson, A. H., Clifford, M., Madziva, R., Thondhlana, J., & Goronga, P. (2019). Exploring the Pentecostal faith—sustainability—entrepreneurship nexus in Zimbabwe. In Sustainability and the Humanities (pp. 225-237). Springer, Cham.
  • Balog, A. M., Baker, L. T., & Walker, A. G. (2014). Religiosity and spirituality in entrepreneurship: a review and research agenda. Journal of management, spirituality & religion, 11(2), 159-186.
  • Battistella, C., Cagnina, M. R., Cicero, L., & Preghenella, N. (2018). Sustainable business models of SMEs: Challenges in the yacht tourism sector. Sustainability, 10(10), 3437.
  • Bellu, R. R., & Fiume, P. (2004). Religiosity and entrepreneurial behavior: an exploratory study. The international journal of entrepreneurship and innovation, 5(3), 191-201.
  • Bilal, A. R., Khan, A. A., & Akoorie, M. E. M. (2016). Constraints to growth: a cross country analysis of Chinese, Indian, and Pakistani SMEs. Chinese Management Studies.
  • Boonchuay, K., Sinapiromsaran, K., & Lursinsap, C. (2017). Decision tree induction based on minority entropy for the class imbalance problem. Pattern Analysis and Applications, 20(3), 769-782.
  • Bose, T. K. (2016). Critical success factors of SME internationalization. Journal of Small Business Strategy, 26(2), 87-109.
  • Clarke, G. (2008). Faith-based organizations and international development: An overview. In Development, Civil Society, and Faith-based Organizations (pp. 17-45). Palgrave Macmillan, London.
  • Collins, J. (2009). Good to Great- (Why Some Companies Make the Leap and Others Don't).
  • Collins, J. C., Collins, J., & Porras, J. I. (2005). Built to last: Successful habits of visionary companies. Random House.
  • Covey, S. R. (1989). The 7 Habits of Highly Effective People: An Extraordinary Step-by-step Guide to Achieving the Human Characteristics that Create Success. Simon and Schuster.
  • Dar, M. S., Ahmed, S., & Raziq, A. (2017). Small and medium-sized enterprises in Pakistan: Definition and critical issues. Pakistan Business Review, 19(1), 46-70.
  • Doherty, B., Thompson, J., & Ndemo, E. B. (2006). Assessing the sustainability of faith‐based enterprises in Kenya. International journal of social economics.
  • Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & De Colle, S. (2010). Stakeholder theory: The state of the art. Cambridge University Press.
  • Geissdoerfer, M., Savaget, P., Bocken, N. M., & Hultink, E. J. (2017). The Circular Economy–A new sustainability paradigm?. Journal of cleaner production, 143, 757-768.
  • Government of Pakistan. (2013), "Economic Survey of Pakistan", Ministry of Finance, Islamabad.
  • Graafland, J., Mazereeuw, C., & Yahia, A. (2006). Islam and socially responsible business conduct: an empirical study of Dutch entrepreneurs. Business Ethics: A European Review, 15(4), 390-406.
  • Haleem, F., Jehangir, M., & Ullah, Z. (2019). Barriers to SMEs Growth: An Exploratory Study of Khyber Pakhtunkhwa Manufacturing Sector. Business & Economic Review, 11(4), 89-112.
  • Hui, L. T. (2008). Combining faith and CSR: a paradigm of corporate sustainability. International Journal of Social Economics.
  • Hyder, S., & Lussier, R. N. (2016). Why businesses succeed or fail: a study on small businesses in Pakistan. Journal of Entrepreneurship in Emerging Economies.
  • Ibrahim, N. A., & Angelidis, J. P. (2005). The long-term performance of small businesses: are their differences between "Christian-based" companies and their secular counterparts?. Journal of business ethics, 58(1-3), 187-193.
  • Idrus, M. R. (2018). Developing the Concept of Firm Success among Muslim SMEs in Malaysia: a Study of Islamic Religion Practices as Moderator. International Journal of Engineering & Technology, 7(3.30), 374-377.
  • Jamal, Nasir (2005) SMEs defined. Dawn News (Available at http://www.dawn.com/news/155279/smes-defined) Jehangir, M., Fazal Haleem, D., Jan, S., & Haq, Z. U. (2016). Why Do Some Businesses Succeed Whilst Others Fail? Evidence from District Swat, KPK, Pakistan. J. Appl. Environ. Biol. Sci, 6(2), 153-163.
  • Kamarudin, S., Baharun, R., Abdullah, R. T., & Liaw, J. O. H. (2014). Religious Faith and Its Affect on Entrepreneurial Values, Marketing, and Human Resource Strategy and Business Performance: An Empirical Analysis.
  • Kazmi, S., & Mäntymäki, M. (2016). Benefits and challenges of enterprise resource planning for Pakistani SMEs.
  • Khan, M. W. J., & Khalique, M. (2014). An overview of small and medium enterprises in Malaysia and Pakistan: past, present, and future scenario. Business and Management Horizons, 2(2), 38-49.
  • Khandker, A. (2014). Constraints and challenges of SME development in the developing countries: A case study of India, Pakistan, and Bangladesh. International Journal of SME Development, 1(1), 87-118.
  • Long, K. T., & Chan, C. D. K. (2020). SMEs’ financial access between Macau and Singapore
  • Mahmood, Z., Kouser, R., & Iqbal, Z. (2017). Why Pakistani small and medium enterprises are not reporting on sustainability practices?. Pakistan Journal of Commerce and Social Sciences (PJCSS), 11(1), 389-405.
  • Martinez, F. (2019). On the role of faith in sustainability management: A conceptual model and research agenda. Journal of Business Ethics, 155(3), 787-807.
  • McCormick, D. W. (1994). Spirituality and management. Journal of managerial psychology. Moyer, J. M., Sinclair, A. J., & Diduck, A. P. (2014). Learning for sustainability among faith-based organizations in Kenya. Environmental Management, 54(2), 360-372.
  • Naheed, K., Nawaz, M. A., & Ahmad, S. (2019). Success vs Failure Prediction Model for SMEs: A Study of South Punjab and Baluchistan.
  • Rai, K., Devi, M. S., & Guleria, A. (2016). Decision tree-based algorithm for intrusion detection. International Journal of Advanced Networking and Applications, 7(4), 2828.
  • Raza, S., Minai, M. S., Zain, A. Y. M., Tariq, T. A., & Khuwaja, F. M. (2018). Dissection of small businesses in Pakistan: issues and directions. International Journal of Entrepreneurship.
  • Raziq, A., & Khair, S. M. (2015). Exploring training and development practices in Pakistani SMEs. Buitems Journal of Social Sciences and Humanities, 1(1), 46-56.
  • Siti Anisah, A., Ahmad, K., Arif, N., Omar, S. S., & Rakiman, U. S. Islam, Muslim, and Business.
  • Sobhani, F. A., Zainuddin, Y., & Amran, A. (2011). Religion as an emerging institutional factor behind sustainability disclosure practices in Bangladesh: the case of an Islamic bank. World Journal of Social Sciences, 1(1), 69-85.
  • Tan, P. N., Steinbach, M., & Kumar, V. (2016). Introduction to data mining. Pearson Education India.
  • ul Haq, A. (2019). Proposing A Model Of Financial Access For Small And Medium Enterprises (SMEs) Through Islamic Banking. CITY UNIVERSITY RESEARCH JOURNAL, 9(4).
  • Zhang, Y., Lu, S., Zhou, X., Yang, M., Wu, L., Liu, B., ... & Wang, S. (2016). Comparison of machine learning methods for stationary wavelet entropy-based multiple sclerosis detection: decision tree, k-nearest neighbors, and support vector machine. Simulation, 92(9), 861-871.

VERİ MADENCİLİĞİ KULLANARAK KÜÇÜK İŞLETMELER İÇİN SÜRDÜRÜLEBİLİR BİR İŞ MODELİ GELİŞTİRME

Year 2021, Volume: 7 Issue: 1, 111 - 144, 30.06.2021

Abstract

KOBİ'ler (Küçük ve Orta Ölçekli Kuruluşlar) Pakistan Ekonomisinin temel yapısıdır. Türlerine bakılmaksızın, dini temelli bir iş yapısına ait olsunlar veya olmasınlar, çoğu kendi etrafında sürdürülebilir bir model kuramıyor ve bu nedenle iflas ediyor. Yaygın nedenler, uzun ömürlü ve çok az parasal ödülü olan projeleri seçerken nakit girişi ve çıkışını dengeleyememeyi içerir. Belge, bu işletmelerin hangi alanları iyileştirmeleri gerektiğini anlamalarına yardımcı olmak için Veri Madenciliği tekniklerinden kavramların entegrasyonunu sunar. Makine öğrenimi algoritmalarıyla birlikte klasik karar ağaçları, kararlarının ve iş akışlarının sürdürülemez hale gelmesine neden olan yönlerini anlamak için KOBİ'lerden gelen verileri analiz etmek için kullanılabilir. Bu kararların dini düzenlemeler ve ilişkiler bağlamında bir analizi, inanca dayalı bir iş yapısının benimsenmesinin bir işletmeye yardımcı olup olamayacağını değerlendirmek için yapılacaktır. Makale ayrıca sürdürülebilirlik açısından seküler ve seküler olmayan iş yaklaşımları arasında bir karşılaştırma sunmakta ve bunu tüm dünyadaki KOBİ'lerin başarısı ve başarısızlığı ile ilişkilendirmektedir. Belgede seçilen kuruluşların kısa bir analizi de yer almaktadır.

References

  • Ali, A. (2018). State of Growth Barriers of SMEs in Pakistan: A Review based on Empirical and Theoretical Models. NICE Research Journal, 158-182.
  • Almoharby, D. (2011). The current world business meltdown: Islamic religion as a regulator. Humanomics
  • Anderson, A. H., Clifford, M., Madziva, R., Thondhlana, J., & Goronga, P. (2019). Exploring the Pentecostal faith—sustainability—entrepreneurship nexus in Zimbabwe. In Sustainability and the Humanities (pp. 225-237). Springer, Cham.
  • Balog, A. M., Baker, L. T., & Walker, A. G. (2014). Religiosity and spirituality in entrepreneurship: a review and research agenda. Journal of management, spirituality & religion, 11(2), 159-186.
  • Battistella, C., Cagnina, M. R., Cicero, L., & Preghenella, N. (2018). Sustainable business models of SMEs: Challenges in the yacht tourism sector. Sustainability, 10(10), 3437.
  • Bellu, R. R., & Fiume, P. (2004). Religiosity and entrepreneurial behavior: an exploratory study. The international journal of entrepreneurship and innovation, 5(3), 191-201.
  • Bilal, A. R., Khan, A. A., & Akoorie, M. E. M. (2016). Constraints to growth: a cross country analysis of Chinese, Indian, and Pakistani SMEs. Chinese Management Studies.
  • Boonchuay, K., Sinapiromsaran, K., & Lursinsap, C. (2017). Decision tree induction based on minority entropy for the class imbalance problem. Pattern Analysis and Applications, 20(3), 769-782.
  • Bose, T. K. (2016). Critical success factors of SME internationalization. Journal of Small Business Strategy, 26(2), 87-109.
  • Clarke, G. (2008). Faith-based organizations and international development: An overview. In Development, Civil Society, and Faith-based Organizations (pp. 17-45). Palgrave Macmillan, London.
  • Collins, J. (2009). Good to Great- (Why Some Companies Make the Leap and Others Don't).
  • Collins, J. C., Collins, J., & Porras, J. I. (2005). Built to last: Successful habits of visionary companies. Random House.
  • Covey, S. R. (1989). The 7 Habits of Highly Effective People: An Extraordinary Step-by-step Guide to Achieving the Human Characteristics that Create Success. Simon and Schuster.
  • Dar, M. S., Ahmed, S., & Raziq, A. (2017). Small and medium-sized enterprises in Pakistan: Definition and critical issues. Pakistan Business Review, 19(1), 46-70.
  • Doherty, B., Thompson, J., & Ndemo, E. B. (2006). Assessing the sustainability of faith‐based enterprises in Kenya. International journal of social economics.
  • Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & De Colle, S. (2010). Stakeholder theory: The state of the art. Cambridge University Press.
  • Geissdoerfer, M., Savaget, P., Bocken, N. M., & Hultink, E. J. (2017). The Circular Economy–A new sustainability paradigm?. Journal of cleaner production, 143, 757-768.
  • Government of Pakistan. (2013), "Economic Survey of Pakistan", Ministry of Finance, Islamabad.
  • Graafland, J., Mazereeuw, C., & Yahia, A. (2006). Islam and socially responsible business conduct: an empirical study of Dutch entrepreneurs. Business Ethics: A European Review, 15(4), 390-406.
  • Haleem, F., Jehangir, M., & Ullah, Z. (2019). Barriers to SMEs Growth: An Exploratory Study of Khyber Pakhtunkhwa Manufacturing Sector. Business & Economic Review, 11(4), 89-112.
  • Hui, L. T. (2008). Combining faith and CSR: a paradigm of corporate sustainability. International Journal of Social Economics.
  • Hyder, S., & Lussier, R. N. (2016). Why businesses succeed or fail: a study on small businesses in Pakistan. Journal of Entrepreneurship in Emerging Economies.
  • Ibrahim, N. A., & Angelidis, J. P. (2005). The long-term performance of small businesses: are their differences between "Christian-based" companies and their secular counterparts?. Journal of business ethics, 58(1-3), 187-193.
  • Idrus, M. R. (2018). Developing the Concept of Firm Success among Muslim SMEs in Malaysia: a Study of Islamic Religion Practices as Moderator. International Journal of Engineering & Technology, 7(3.30), 374-377.
  • Jamal, Nasir (2005) SMEs defined. Dawn News (Available at http://www.dawn.com/news/155279/smes-defined) Jehangir, M., Fazal Haleem, D., Jan, S., & Haq, Z. U. (2016). Why Do Some Businesses Succeed Whilst Others Fail? Evidence from District Swat, KPK, Pakistan. J. Appl. Environ. Biol. Sci, 6(2), 153-163.
  • Kamarudin, S., Baharun, R., Abdullah, R. T., & Liaw, J. O. H. (2014). Religious Faith and Its Affect on Entrepreneurial Values, Marketing, and Human Resource Strategy and Business Performance: An Empirical Analysis.
  • Kazmi, S., & Mäntymäki, M. (2016). Benefits and challenges of enterprise resource planning for Pakistani SMEs.
  • Khan, M. W. J., & Khalique, M. (2014). An overview of small and medium enterprises in Malaysia and Pakistan: past, present, and future scenario. Business and Management Horizons, 2(2), 38-49.
  • Khandker, A. (2014). Constraints and challenges of SME development in the developing countries: A case study of India, Pakistan, and Bangladesh. International Journal of SME Development, 1(1), 87-118.
  • Long, K. T., & Chan, C. D. K. (2020). SMEs’ financial access between Macau and Singapore
  • Mahmood, Z., Kouser, R., & Iqbal, Z. (2017). Why Pakistani small and medium enterprises are not reporting on sustainability practices?. Pakistan Journal of Commerce and Social Sciences (PJCSS), 11(1), 389-405.
  • Martinez, F. (2019). On the role of faith in sustainability management: A conceptual model and research agenda. Journal of Business Ethics, 155(3), 787-807.
  • McCormick, D. W. (1994). Spirituality and management. Journal of managerial psychology. Moyer, J. M., Sinclair, A. J., & Diduck, A. P. (2014). Learning for sustainability among faith-based organizations in Kenya. Environmental Management, 54(2), 360-372.
  • Naheed, K., Nawaz, M. A., & Ahmad, S. (2019). Success vs Failure Prediction Model for SMEs: A Study of South Punjab and Baluchistan.
  • Rai, K., Devi, M. S., & Guleria, A. (2016). Decision tree-based algorithm for intrusion detection. International Journal of Advanced Networking and Applications, 7(4), 2828.
  • Raza, S., Minai, M. S., Zain, A. Y. M., Tariq, T. A., & Khuwaja, F. M. (2018). Dissection of small businesses in Pakistan: issues and directions. International Journal of Entrepreneurship.
  • Raziq, A., & Khair, S. M. (2015). Exploring training and development practices in Pakistani SMEs. Buitems Journal of Social Sciences and Humanities, 1(1), 46-56.
  • Siti Anisah, A., Ahmad, K., Arif, N., Omar, S. S., & Rakiman, U. S. Islam, Muslim, and Business.
  • Sobhani, F. A., Zainuddin, Y., & Amran, A. (2011). Religion as an emerging institutional factor behind sustainability disclosure practices in Bangladesh: the case of an Islamic bank. World Journal of Social Sciences, 1(1), 69-85.
  • Tan, P. N., Steinbach, M., & Kumar, V. (2016). Introduction to data mining. Pearson Education India.
  • ul Haq, A. (2019). Proposing A Model Of Financial Access For Small And Medium Enterprises (SMEs) Through Islamic Banking. CITY UNIVERSITY RESEARCH JOURNAL, 9(4).
  • Zhang, Y., Lu, S., Zhou, X., Yang, M., Wu, L., Liu, B., ... & Wang, S. (2016). Comparison of machine learning methods for stationary wavelet entropy-based multiple sclerosis detection: decision tree, k-nearest neighbors, and support vector machine. Simulation, 92(9), 861-871.
There are 42 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Syed Waqas Ahmed 0000-0001-8798-7511

Imran Khan 0000-0002-2518-4796

Publication Date June 30, 2021
Submission Date April 12, 2021
Acceptance Date June 27, 2021
Published in Issue Year 2021 Volume: 7 Issue: 1

Cite

APA Ahmed, S. W., & Khan, I. (2021). DEVELOPMENT OF A SUSTAINABLE BUSINESS MODEL FOR SMALL BUSINESSES USING DATA MINING. İslam Ekonomisi Ve Finansı Dergisi (İEFD), 7(1), 111-144.

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