Relationship among 5M in the Value Chain of Nanotechnology and Cost Leadership Strategy

Abstract

In recent decades, nanotechnology is as a main way of in international competitiveness that is due to science and technology. Hence, nanotechnology is known as a new industry or science in the global market competition topics. Most of big companies pursue nanotechnology business in the global market from different products and services through the intensive competitions, especially energy sector in the future. A company can be utilized cost leadership strategy in the value chain of nanotechnology products or services through raw material, machine, manpower, method, and money. Nanotechnology, Nano products and materials can be found as solutions for many existing and latent problems in the future. Consequently, cost leadership and innovation are as strategies for efficiency of services or companies to be frontier in the world. Therefore, this study aims to examine the associations among material, machine, manpower, method, and money in the value chain of nanotechnology and cost leadership. To achieve the aim, seventy questionnaires were distributed among the staffs of two companies of nanotechnology in Iran that are active in production. The sample was selected as Simple Random Sampling (SRS) among their staffs. Quantitative analysis confirmed that there were significant relationships between cost leadership and each independent variable. The minimum correlation was allocated to the relationship between Nano machine and cost leadership (r=3.35, SD=0.79). In addition, maximum correlation was obtained from the relationship between cost leadership and Nano method (r=3.66, SD=0.64). DOI: 10.5901/mjss.2016.v7n2p343