Strategy

Strategy

Fulfilling Clause 8 of the General Investment Policies Through Transcendent Governance and a Problem-Oriented Business Environment in Attracting Foreign Investment

Document Type : Research Paper

Authors
Alireza Vahhabi barzi 1
Bahram Kheiri 2
Hamed Nazarpour Kashani 3
1 PhD student in Business Management-Marketing, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 Associate Professor, Department of Commerce, Central Tehran Branch, Islamic Azad University, Tehran, Iran (Corresponding Author)
3 Assistant Professor, Department of Commerce, Central Tehran Branch, Islamic Azad University, Tehran, Iran
10.22034/rahbord.2026.550438.1867
Abstract
Foreign direct investment (FDI) is a critical driver of economic development, contributing to technology transfer, project financing, and productivity growth. Despite possessing significant geopolitical advantages and abundant natural resources, Iran faces a substantial gap between its investment potential and actual FDI inflows due to persistent institutional and structural constraints. This study examines the impact of a problem-oriented approach to improving the business environment on FDI attraction, with particular emphasis on the dimensions of good governance within the framework of Clause 8 of the General Policies for Investment Promotion. Using a quantitative methodology with a deductive approach and a descriptive–survey design, data were collected from 100 managers involved in foreign investment, selected through stratified random sampling from a population of 130 respondents. Data collection was conducted via library research and structured questionnaires, and the hypotheses were tested using structural equation modeling (SEM). The validity of the instruments was confirmed through content, face, and construct validity, while reliability was established using Cronbach's alpha and composite reliability. The results reveal that a functional governance approach and authoritative centralization exert a direct and statistically significant influence on improving the business environment. Furthermore, economic predictability plays a pivotal role in enhancing investor confidence. Improvements in the business environment positively affect investment guidance mechanisms and the formulation of a strategic roadmap for FDI attraction, while international sanctions impose a negative moderating effect. The findings underscore the necessity of transitioning toward good governance, emphasizing transparency and political stability
Keywords
Foreign direct investment
good governance
business environment
problem-oriented approach
Clause 8 of the General Policies
Subjects
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  • Receive Date 01 October 2025
  • Revise Date 25 February 2026
  • Accept Date 26 February 2026