An Integrated and Localized Model of a Resilient Economy Based on Digital Technologies in Agriculture and Handicrafts of Sistan

Document Type : Research Paper

Authors

1 Department of Agricultural Economics-Agricultural Marketing, University of Zabol, Zabol, Iran.

2 Department of Agricultural Economics and Development, Payame Noor University, Tehran, Iran.

Abstract

This research aims to present an innovative model for strengthening resilient economy based on digital technologies in the agriculture and handicrafts sectors of the Sistan region. The statistical population comprised 364 economic actors from both the agriculture and handicrafts sectors, selected using stratified random sampling. The data collection tool was a researcher-developed questionnaire utilizing a Likert scale, and the data were analyzed through statistical methods including descriptive statistics, Friedman test, convergent and discriminant validity (AVE, CR, HTMT), structural equation modeling (SEM), multi-group testing, and cluster analysis. The findings indicated that optimal water resource management holds the highest importance in agriculture, while enhancing digital presence has the greatest effect in the handicrafts sector (p<0.001). The validity, reliability, and fit indices of the structural equation model were at satisfactory levels (RMSEA=0.039; CFI=0.961). The SEM results demonstrated a significant positive impact of online presence and resource productivity on resilient economic performance, particularly in handicrafts, where market demand is more dependent on digital platforms. The results suggest that the simultaneous development of digital infrastructure and resource optimization is key to enhancing the resilient economy in Sistan. In agriculture, prioritizing water management policies and training in modern technologies is essential, while in handicrafts, active participation in digital markets and branding is crucial. Therefore, establishing a "Regional Innovation and Digital Marketing Center" with a mission to teach digital skills, conduct market analysis, and provide branding and export services, alongside water resource management projects, could contribute to achieving a sustainable resilient economy and increasing the competitiveness of producers in Sistan.

Keywords


Extended Abstract

Introduction

The concept of a resilient economy is founded on developing a dynamic, knowledge-based, and adaptive economic structure capable of withstanding external pressures such as sanctions, environmental crises, and sudden market shifts. This framework prioritizes not only meeting basic needs and optimizing domestic resources but also localizing technology and cultivating a knowledge-driven ecosystem to ensure long-term sustainability.

Sistan—comprising Zabol, Zahak, Nimruz, and Hamoon—is a region in eastern Iran with deep historical and cultural roots. Despite prolonged droughts, it remains a vital hub for agriculture (wheat, barley, vegetables) and traditional crafts (embroidery, pottery, carpet weaving). Yet, the region faces multiple challenges, including reduced inflow from the Helmand River, reliance on transboundary water sources, soil degradation, wind erosion, migration of skilled labor, limited digital infrastructure for marketing and distribution, and restricted access to innovation capital.

 

Methods

This study examines the Sistan region in northern Sistan and Baluchestan province. The statistical population includes about 7,500 individuals engaged in agriculture and handicrafts with registered economic activities in 2023. Using Cochran’s formula, a sample of 364 participants was selected. Data were collected through a researcher-designed questionnaire on a five-point Likert scale, informed by prior studies. The analytical framework comprised descriptive statistics, Shapiro-Wilk test for normality, Pearson correlation analysis, confirmatory factor analysis, structural equation modeling (SEM) with AMOS, multiple regression, and SEM model selection based on Black & Babin (2019).

 

Results

All correlations between resilient economy indicators and digital marketing components were positive and statistically significant, highlighting strong synergy. The highest correlation was between online presence and CRM (r = 0.592), showing that a stronger digital footprint enhances customer relationship capacity. Regression analysis identified online presence, CRM, and data analytics as significant predictors of resilient economic performance. The Friedman test ranked optimal water usage highest (mean = 4.12), followed by e-commerce (mean = 4.05) and social media (mean = 3.99). SEM results indicated strong model fit (CFI = 0.961, RMSEA = 0.039, χ²/df = 2.05). The most influential path was from online presence to resilient economy (β = 0.36, t = 6.42), followed by CRM (β = 0.32, t = 5.88) and data analysis (β = 0.28, t = 5.21), all significant at p ≤ 0.001. Multi-group analysis revealed sectoral differences, with agriculture and handicrafts showing varying impact intensities.

 

Discussion

Digital transformation provides distinct benefits across sectors. In handicrafts and local services, online presence delivers the greatest added value by expanding market access and customer engagement. In agriculture and livestock, productivity-enhancing technologies and resource management strategies are most effective. These findings highlight the need for sector-specific policy interventions: investment in digital marketing infrastructure, online sales platforms, and CRM systems for handicrafts; and adoption of modern irrigation, soil conservation, and data-driven productivity tools for agriculture. Such differentiated strategies are essential for strengthening economic resilience and achieving sustainable development in the Sistan region.

Data Availability Statement

“Data available on request from the authors”

Ethical considerations

The authors avoided data fabrication, falsification, plagiarism, and misconduct.

Conflict of interest

The author declares no conflict of interest.

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