Strategy

Strategy

The Framework for Improving the Institutional Capacity of the Private Sector in the Development of Iran's Upstream Oil and Gas Industries with a Governance Approach

Document Type : Research Paper

Authors
Ahmad Jannatsharifi 1
Gholamreza Kazemian 2
Hossein Aslipour 3
meysam narimani 4
1 Phd student , Public Administration, Faculty of Management and Accounting, Allameh Tabatabai University, Tehran, Iran
2 Associate Professor of Urban Management, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran
3 Assistant Professor of Puplic Management & Policy Making, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran.
4 Assistant Professor, Institute of Technology Studies, Tehran, Iran.
10.22034/rahbord.2023.412871.1593
Abstract
Based on the governance approach, the effective administration of affairs in various fields requires the constructive participation of other stakeholders and the development and promotion of their institutional capacity in the successful administration of affairs, the accurate implementation of measures, and the resolution of problems in achieving the goals. The article aims to provide a framework for improving the institutional capacity of the private sector in the development of Iran's upstream oil and gas industries, emphasizing the governance approach. Article in terms of practical purpose and from the point of view of the method; It is qualitative in its approach to documentary scanning. The statistical population was all the upstream documents related to the oil and gas industries, which were selected using a targeted method. The resulting data have been analyzed using the theme analysis method and theme network approach. The results of the findings have shown that the improvement of the institutional capacity framework of the private sector depends on the interaction of various factors at three levels: A) Individuals, including: 1) investors; 2) executive bodies; 3) senior managers in policy-making authorities; 4) mutual obligations of the parties; 5) partnership working groups; B) Organization, including: 1) technical infrastructure; 2) political-legal requirements in policy-making; 3) strong contractual mechanisms; 4) financial mechanisms; 5) approval of relevant authorities; 6) facilitation mechanisms; C) contextual, including: 1) the areas of partnership; 2) functions of the partnership; 3) modes of partnership; 4) preservation of values; and 5) areas of utilizing the capabilities of the private sector.
Keywords
Institutional Capacity
Partnership
Private Sector
Upstream Industries
Oil and Gas
Governance
Subjects
  • Ahmed, H., & Cohen, D. (2019). Stakeholder Attributes and Attitudes During Privatization: A New Zealand Case Study. International Journal of Public Sector Management, 32(2), 157- 174.
  • Aid, E. (2005). Institutional Assessment and Capacity Development: Why, What, and How. ‏. Italy: European Commission.
  • Barkhi, N. (2016). The Use of Public- Private Partnership (PPP) in the Upstream and Downstream Sectors of the Country's Oil and Gas Industry. Tehran: Master's thesis, Faculty of Law and Political Sciences, University of Tehran. (In Persian)
  • Barman, E., & MacIndoe, H. (2012). Institutional Pressures and Organizational Capacity: The Case of Outcome Measurement. ,. Sociological Forum, 27(1), 70-93.
  • Bhagavan, M., & Virgin, I. (2004). Generic Aspects of Institutional Capacity Development in Developing Countries. Stockholm: Stockholm Environment Institute.
  • Brown , R. (2008). Local Institutional Development and Organizational Change for Advancing Sustainable Urban Water Futures. Environmental Management, 41(2), 221-133.
  • Cheraghi, R., Qaed Rahmati, S., Meshkini, A., & Qader Marzi, H. (2021). Explaining the Role of Institutional Capacity in the Competitiveness of Iran's Middle Cities (case study: Sanandaj and Zanjan Cities). Human Geography Research, 53(2), 427-451. (In Persian)
  • Cuthill, M., & Fien, J. (2005). Capacity Building: Facilitating Citizen Participation in Local Governance‏. Australian Journal of Public Administration, , 64(4), 63-80.
  • Danaei Fard, H., Delkhah, J., & Kiyani, P. (2017). Identifying and Prioritizing Obstacles to the Development of Private-Public SectorPartnerships. Business Management Quarterly, (29), 33-49. (In Persian)
  • Derakhshan, M. (2013). Desirable Characteristics of Oil Contracts: a Historical Economic Approach to the Performance of Oil Contracts in Iran. Iranian Energy Economics Quarterly, 3(9), 113-53. (In Persian)
  • Derakhshan, M., & Taklif, A. (2015). Technology Transfer and Development in the Upstream Sector of Iran's Oil Industry: Considerations in Concepts, Requirements, Challenges and Solutions. Iran Energy Economics Research Journal, 4(14), 33-88. (In Persian)
  • Deutsche Bank . (2013). Oil & Gas for Beginners. In Germany: Deutsche Bank.
  • Eade, D. (1997). Capacity-Building: An Approach to People-centered Development. (Vol. 10). London: Oxfam Publication.
  • Ebrahimpour, H., & Aliki, F. (2016). Examining the Role of Good Governance in the Efficiency of Governments. International Conference of Management Elites, (pp. 1-18). Tehran. (In Persian)
  • Henry, N., & Pinch, S. (2001). Neo-Marshallian nodes, institutional thickness, and Britain's ‘Motor Sport Valley’: thick or thin?‏. Environment and Planning A, 33(7), 1169-1183.
  • Heybati, F., Rahnamay Roudpushti, F., Nikoumaram, H., & Ahmadi, M. (2010). The Relationship between Economic Freedom and Public-Private Partnerships and Providing a Model for Iran. Economic Modeling Quarterly, 6, 25-52. (In Persian)
  • Hudson, R. (2004). (Addressing the Regional Problem: Changing Perspectives in Geography and on Regions. In Conference of Irish Geographers. 7, pp. 4-12. Irish: Maynooth. Retrieved 7-9 May 2004
  • Hughes, E. (1998). Public Management & Administration. Maxmillan Press.
  • Imbaruddin, A. (2003). Understanding Institutional Capacity of Local Government Agencies in Indonesia. Australi: Ph.D Dissertation, the Australian national University, Canberra.
  • Jale Baghbaderani, M., Yaqoubipour, A., & Fathizadeh, A. (2021). Designing a Participatory Governance Model in Order to Reduce Administrative Corruption with a Mixed Approach (case study: Ahvaz City Governorate (Provincial Government and governorship)). Strategy Quarterly, 30(4 consecutive 101), 831-865. (In Persian)
  • Kazemi Najafabadi, A., & Ghaffari, A. (2018). Development of the Manufacturing Industry in the Upstream Oil and Gas Sector; Evaluation of the Legal System in the Framwork of General "Science and Technology" policies. Energy Law Studies, 4(1), 211-239. (In Persian)
  • Kazemi Najafabadi, A., & Ghaffari, A. (2019). Assessing the Sufficiency of Oil Rights Resources in the Development of Domestic Industries for the Production of Oil and Gas Industry Equipment in the Upstream Sector. Public Law Research Quarterly, 21(65), 113-145. (In Persian)
  • Kazemian, Gh., Aslipour, H., & Taghipour Akhtari, A. (2021). From the Perspective of Governance: Explaining the Challenges of Tehran's Urban Construction Management in the Path of Achieving Sustainable Development. Strategy Quarterly, (30), 653-689. (In Persian)
  • Kazemian, Gh., Farajirad, K., Rukneddin Eftekhari, A., & Portahari, M. (2013). The Relationship between Institutional Capacity and Regional Sustainable Development (Case Study: Bukan and Urmia Cities). Geography Quarterly, 11(38), 153-171. (In Persian)
  • Kazemian, Gh., Farajirad, K., Rukneddin Eftekhari, A., & Portaheri, M. (2012). Assessing and Formulating Appropriate Strategies for Improving Regional Institutional Capacity (Case Example: Bukan and Urmia Cities). Quarterly Journal of Urban Studies, (2), 23-39. (In Persian)
  • Kotus, J., & Sowada, T. (2017). Behavioral Model of Collaborative Urban Management: Extending the Concept of Arnsteins Ladder. Cities, 65, 78-86.
  • Lafontaine, A. (2000). Capacity Development Initiative, Assessment of Capacity Development Efforts of other Development Cooperation Agencies. GEF-UNDP.
  • Lalehpour, M. (2017). An Analysis of the Institutional-Management Capacity of Urban Spaces in Relation to Citizens' Participation in City Administration (Case Study: District 8 of Tabriz City). Geography and Development Quarterly (49), 59-80. (In Persian)
  • Lawthern, W. (2005). Public–Private Partnerships in Transportation Policy: The Case of Advanced Traveler Information Systems. Intl Journal of Public Administration(28), 1117-1134.
  • Maadani, J. (2022). Smart Governance: a New Approach in Realizing Effective Participation and Cooperation of Citizens. Strategy Quarterly, 31(3 series 104), 407-440. (In Persian)
  • Majamaa, W. (2008). The 4th P - people - in urban development based on Public-Private-People Partnership. Doctoral Theses, Faculty of Engineering and Architecture for public examination and debate in TUAS House in auditorium AS2 at Helsinki University of Technology.
  • Malaei, Kh., Kozehgar Kaleji, L., Razaviyan, M., & Tevakolinia, J. (2021). The Role of Institutional Capacity in Sustainable Urban and Peri-Urban Development of Bojnord. Journal of Urban Space Development, 13(1 series 5), 19-36. (In Persian)
  • Manzour, D., Ghaemi Asl, M., & Rajabi, S. (2018). Mutual Effect of Supply Side Shocks of Upstream, Midstream and Downstream Industries of Oil and Gas in Iran's Economy. Economic Strategy Quarterly, 7(26), 117-167. (In Persian)
  • McCall, T. (2003). Institutional Design for Community Economic Development Models: Issues of Opportunity and Capacity‏. Community Development Journal,, 38(2), 96-108.
  • Moatamedi, M., Vaezi, R., Alvani, S., & Danesh Jafari, D. (2021). Development of the Strategy of Public-Private Partnerships in line with the General Policies of the Health System. 9(1), 2-26. (In Persian)
  • Movahed, A., Kamanroudi, M., Sasanpour, F., & Ghasemi Kafrodi, S. (2014). Investigating Good Urban Governance in Urban Neighborhoods (Case Study of District 19 of Tehran Municipality). Urban Planning Studies Quarterly, 2(7), 147-176. (In Persian
  • Evans, B., Joas, M., Sundback, S., & Theoba, K. (2004). Institutional Capacity and Social Capacity. . In Governing Sustainable Cities. (1 ed., p. 160). London: Routledge.
  • Evans, B., Joas, M., Sundback, S., & Theobald, K. (2005). Governing Sustainable Cities. Earthscan, London: Sterling, VA.
  • Farajirad, Kh., & Kazemian, G. (2012). Local and Regional Development from the Perspective of Institutional Approach. (First Eddition). Tehran: Academic Jihad Publishing Organization. (In Persian)
  • Fayez, S., Faqihi, A., & Sayad Shirkash, S. (2020). Presenting the Model of Public and Private Sector Participation in Iran's Downstream Oil Industries. Public Management Research Quarterly, 13(50), 31-55. (In Persian)
  • Franks, T. (1999). Capacity Building and Institutional Development: Reflections on Water‏. Public Administration and Development: The International Journal of Management Research and Practice, 19(1), 51-61.
  • Geddes, L. (2012). In Research of Collaborative Public Management. Public Management Review, 14(7), 947-966.
  • Ghasemi, A., & Rafiean, M. (2020). An Analysis of the Conflict of Interest in Large-Scale Collaborative Projects in the City with an Emphasis on the Public-Private-People Partnership Model (Case Study: Isfahan Jahan Namaj Citadel Project). Quarterly Journal of Urban Studies, (34), 91-104. (In Persian)
  • Gibbs, D., Andrew , E., Jonas, R., & Spooner, D. (2001). Governance, Institutional Capacity and Partnerships in Local Economic Development: Theoretical Issues and Empirical Evidence from the Humber Sub-Region. Transactions of the Institute of British Geographers, 26(1), 103-119.
  • Giordano, B. (2001). Institutional Thickness’, Political Sub‐Culture and theResurgence of (the ‘new’) Regionalism in Italy–a Case Study of the Northern League in the Province of Varese. Transactions of the Institute of British Geographers, 26(1), 25-41.
  • Grindle, M., & Hilderbrand, M. (1995). Building sustainable capacity in the public sector: what can be done? ‏. Public administration and development, 15(5), 441-463.
  • Hamidi, A. (2018). Analysis of the Relationship between Institutional Capacity and Social Capacity with Spatial Justice in the Provision of Urban Services. Master's thesis, Allameh Tabatabai University - Faculty of Management and Accounting. (In Persian)
  • Healey, P. (1998). Building Institutional Capacity Through Collaborative Approaches to Urban Planning. Environment and Planning B: planning and design, 30(9), 1531-1546
  • Perjo, L., Fredricsson, C., & Costa, S. (2016). Public-Private-People Partnership in Urban Planning. Baltic Urban City Lab.
  • Pierre, J., & Peters, B. (2000). Governance, Politics and the State. Hampshire, UK: Palgrave Macmillan.
  • Rafiean, M., Khodaei, Z., & Dadashpour, Q. (2014). Capacity Building of Local Communities as an Approach in Empowering Social Institutions. Quarterly Journal of Sociology of Social Institutions, 1(2), 133-160. (In Persian)
  • Rahimi, M., & Eyvazi, M. (2022). The Ideal Model for the Reconstruction of Iran's Governance Structures Based on the Network Approach. Strategy Quarterly, 31(3 - consecutive 104), 373-406. (In Persian)
  • Rajabi, A. (2011). Ways of Citizen Participation in Urban Development Processes. Geographical Quarterly Journal of Environmental Studies, (18), 101-116. (In Persian)
  • Ramazannejad, Y. (2016). Designing the Model of Institutional Capacity Building for the Sustainable Development of Coastal Tourism (Case Study: Rural Beaches of Gilan Province). PhD thesis, Tarbiat Modares University. (In Persian)
  • Robins, L. (2008). Perspectives on Capacity Building to Guide Policy and Program Development and Delivery. , ‏. Environmental Science & Policy, 11(8), 687-701.
  • Sadeghi Shahdani, M., Shahbazi Ghiasi, M., & Bigdeli, V. (2012). Prioritizing Obstacles to the Development of Public-Private Partnerships Using MCDM Methods in Iran's Transportation Sector. Economic Modeling Research Quarterly, 2(6), 107-130. (In Persian)
  • Saeb, Sh. (2016). Study and Analysis of the Effects of Good Governance on Social Responsibility of Villagers (Case Study: Villages of Ardabil Province). Master's thesis: Mohaghegh Ardabili University - Faculty of Literature and Humanities. (In Persian)
  • Salarzehi, H., & Ebrahimpour, H. (2012). Examining the Evolution of Public Administration Paradigms: From the Traditional Public Administration Paradigm to the Good Governance Paradigm. Public Administration Quarterly, 4(9), 43-62. (In Persian)
  • Savitch, H. (1998). Global Challenge and Institutional Capacity: or, How we Can Refit Local Administration for the Next Century‏. Administration & Society, 30(3), 248-273.
  • Sayadi, M., & Khodaparast, Y. (2017). Requirements for the Implementation of Policies of the Sixth Development Plan in the Upstream Sector of the Oil and Gas Industry. Exploration andProduction of Oil and Gas (148), 27-35. (In Persian)
  • Segnestam, L., Persson , A., Nilsson, M., Arvidsson, A., & Ijjasz, E. (2002). Country Environment Analysis: A Review of International Experience. Environment Strategy Papers(8).
  • Shabanali Fami, H., Alibeigi, A., & Sharifzadeh, A. (2005). Approaches and Techniques of Participation in Agricultural Promotion and Rural Development, (First Edition). Tehran: Publications of the Rural Development Institute. (In Persian)
  • Sheikhzadeh, M., Arasti, M., & Kotobzadeh, R. (2011). Identifying Key Success Factors in the Upstream Sector of Iran's Oil and Gas Industry. Iranian Journal of Management Sciences, 22(6), 129-99. (In Persian)
  • Shirvey, A., & Amin Majd, F. (2012). Foreign Investment in Upstream Oil and Gas Operations. Scientific-Research Journal of Private Law, 9(2), 5-34. (In Persian)
  • Stein, H. (2008). Beyond the World Bank Agenda: An Institutional Approach to Development., London: The University of Chicago Press.
  • Taghipour, A., Mashayekhi, A., & Jafari, Gh. (2018). Analysis of Social Capital in Improving the Indicators of Good Urban Governance (case study: Semnan city). Urban and Regional Development Planning Quarterly, 3(6), 145-168. (In Persian)
  • Taklif, A., Faridzad, A., & Ghaffari, A. (2018). Economic and Legal Considerations in the Domestic Production of Equipment for the Country's Upstream Oil Industries with an Emphasis on Technology Transfer in the New Upstream Oil and Gas Contracts of Iran. Commercial Research Quarterly, (86), 89-123. (In Persian)
  • Treib, O., Bahr, H., & Falkner, G. (2007). Mods of Governace: Towards a Conceptual Clarification. 14(1), 1-20.
  • Ubels, J., Acquaye - Baddoo, N., & Fowler, A. (2010). Capacity Development on Practice .
  • UNDP . (1998). Capacity Assessment and Development in a Systems and Strategic Management Context. New York: United Nations Development Programs.
  • Van Horen, B. (2002). Planning for Institutional Capacity Building in War-Torn Areas: The Case of Jaffna, Sri Lanka. Habitat International, 26(1), 113-128.
  • Wickham, F., Kinch, J., & Lal, P. (2009). Institutional Capacity within Melaneslan Countries to Effectively Respond to Climate Change Impacts, with a Focus on Vanuatu and the Solomon Island. ‏Apia, Samoa: Secretariat of the Pacific Regional Environment Programme. UNEP Document Repository
  • Willems, S., & Baumert, K. (2003). Institutional Capacity and Climate Actions. Organisation for Economic Co-Operation and Development, International Energy Agency

 

 

  • Receive Date 07 September 2023
  • Revise Date 02 September 2023
  • Accept Date 05 September 2023