Introduction

Micro and home-based enterprises, particularly those in which women constitute the main driving force in Ardabil Province, possess significant potential for fostering local economic and social development. These businesses not only contribute to the economic empowerment of women by providing opportunities for independent income generation, but also enhance regional economic dynamism through the creation of sustainable livelihoods and the expansion of small-scale enterprises. Moreover, by drawing on indigenous capacities, local skills, and endogenous resources, such enterprises can play a key role in preserving and strengthening cultural identity and in producing regionally competitive, value-added products. Despite the growing importance of this sector, there is still no comprehensive understanding of how value is created within these enterprises, how value-adding processes unfold, and which factors shape their value chain. This knowledge gap poses serious challenges for effective planning and policymaking, and prevents support programs from being designed and implemented in a targeted, efficient, and evidence-based manner. In such a context, the lack of a clear picture of the missing links in the value chain leads to fragmented efforts, resource inefficiencies, and the continued weakness of these enterprises’ integration into formal markets and broader supply networks. Against this backdrop, the present study seeks to design and propose a comprehensive value chain model for home-based businesses with a specific focus on women in Ardabil Province, thereby addressing this knowledge gap. The model is developed using a Grounded Theory approach, which, by relying on field data and the lived experiences of key actors, enables an in-depth, coherent, and systematic exploration of the multiple dimensions of the value chain, the complex relationships among its components, and the underlying mechanisms that drive value creation in these enterprises. Within this methodological framework, attention is paid not only to identifying causal and contextual conditions, but also to examining the role of intervening conditions and strategic actions in shaping economic and social outcomes. The ultimate aim of this research is to offer a coherent theoretical framework that can facilitate more effective policymaking and practical interventions in support of this critical segment of the local economy. The findings are expected to inform the design of development programs, innovative financial instruments, and improved cooperative structures, as well as to strengthen the linkages between women’s home-based enterprises, upstream industries, and national and international markets. Furthermore, the proposed model is anticipated to provide a scientifically grounded account of the value chain of women’s home-based businesses in Ardabil and to serve as a potentially transferable framework for other regions with comparable socio-economic conditions.

Methodology

This research is qualitative, developmental, interpretive, and inductive, executed with a grounded theory approach. The statistical population comprised fifteen active members of cooperatives, managers and board members, raw material suppliers, sellers, and other identified key stakeholders, as well as relevant university experts and professors. Participants were involved in the study through non-probability purposive and targeted sampling, and data were collected via semi-structured interviews. Data analysis was conducted using MAXQDA software with the grounded theory approach, based on three stages of open, axial, and selective coding. Initially, data were gathered through semi-structured interviews, followed by extraction in the coding process. Categories were then defined in terms of causal conditions, contextual conditions, intervening conditions, and the core phenomenon, along with strategies and outcomes for the conceptual model. In the selective coding stage, each element of the pattern was presented to develop the research theory.

Findings

According to the research findings, in line with the home-based business value chain model, In this model, six key components were identified and described: Causal Conditions (failure of the traditional paradigm and inefficiency of short-term policies, inefficient production structure and weak unionization, systemic challenges in value chain loops, institutional requirements and emerging contexts, individual and managerial characteristics of entrepreneurs); Phenomenon-Centricity (networked connection and strategic linkage of value chain loops, completion and development of missing value chain loops, cooperative organization and collective empowerment, chain financing and financial innovation); Contextual Conditions (geographical context and regional advantages, institutional context and governance structure, economic context and supporting infrastructure, legal, administrative, and regulatory context, cultural, social, and skill-based context); Intervening Conditions (political interventions and regulatory instability, market transformations and external competition, legal, judicial, and security factors, emergency conditions and force majeure, social capital and psychological factors); Strategies (problem diagnosis and identification of local capacities, organizing producers into genuine specialized cooperatives, establishing chain financing systems, connecting with large enterprises and mother industries, developing processing, manufacturing, and packaging industries, market development, branding, and export expansion, reforming cultivation patterns and optimizing resource productivity, institutional coordination and synergy among executive agencies, empowering deprived regions and regional justice); Consequences (increased share of small producers in value-added, employment sustainability, value-creating economy, branding and enhancing competitiveness in national and international markets).

Conclusion

This study, by presenting a comprehensive model based on six key components, demonstrates that the transition from structural inefficiencies and short-term policies toward sustainable development requires the synergy of causal, contextual, and intervening conditions with operational strategies such as cooperative organization, chain financing, and linkage to mother industries. This synergy aims to achieve desirable outcomes, including an increased share of value-added for small producers and employment sustainability. The primary innovation of this research lies in articulating an integrated, systemic framework that, rather than adopting an isolated perspective, connects the missing links of the value chain and emphasizes “phenomenon-centrism” and collective empowerment to offer strategic solutions for overcoming institutional challenges and competitive market dynamics. The general recommendations emphasize reforming governance patterns, ensuring regulatory stability, developing new financial infrastructures, and strengthening national branding to enhance international competitiveness. More precisely, the analyses indicate that the failure of traditional paradigms and weak unionization are the root causes of fragmentation in the value chain, exacerbated by political interventions and regulatory instability. Consequently, the proposed strategy goes beyond superficial reforms, focusing on creating an ecosystem based on genuine specialized cooperatives and direct linkages between small producers and large enterprises or mother industries. This innovative approach, leveraging novel financing tools and the development of processing industries, not only completes the missing links but also, by focusing on local contexts and regional justice, ensures a more equitable distribution of value-added and enhances the competitiveness of products in global markets through branding and quality improvement. Within the framework of this model, the research findings can enhance women’s micro and home-based businesses in Ardabil by facilitating their access to formal markets and integrated supply chains, thereby securing a greater share of value added for them. Strengthening specialized cooperatives also increases the capacity of women entrepreneurs and local cooperatives to benefit from professional training, standardization processes, and innovative financial instruments. Direct linkages with mother industries contribute to stable sales channels and reduce dependency on intermediaries for small-scale producers. Furthermore, the development of processing industries and regional branding reinforces the growth potential and national market presence of indigenous products produced by women in Ardabil. Ultimately, by fostering a supportive ecosystem, this approach significantly promotes employment sustainability and the economic empowerment of women and cooperatives in the province.