Identifying and analyzing factors affecting the excellence and success of small and medium industries using the system dynamics approach

Based on the theoretical underpinnings and opinions of industry experts, key variables in the field of new product development have been identified, and cause-and-effect relationships between these variables have been drawn in this study to identify and analyze the dynamics of factors affecting the success of new product development. The intended system has been replicated in the steel industry corporation using the mathematical correlations between these variables that have been established based on the linkages in the backdrop. The strategies of expanding managerial support, investing more in R D, and increasing and enhancing product development planning have been recommended to increase the company’s performance, and the outcomes of these scenarios have been simulated. The findings indicated that the first level is where the factors related to product development, technology development, research and development activities, the presence of complementary resources, long-term relationships with suppliers, transparent procedures, managerial competence, information sharing, conflict management, risk management, and problem-solving. The second level of the paradigm also includes pursuing power, caving to rivals, inspiring motivation, technical proficiency, technology knowledge transfer, customer happiness, market capacity, and marketing activities. The third level of the model was then used to group the following factors: market penetration, inter-industry compatibility, collaboration, mutual trust, business competence, the appearance of new rivals, change in consumption rate, awareness of environmental concerns, and business competence. This can contribute to the excellence and success of small and medium-sized metal sector businesses.