Objective: The purpose of this study is to provide a model for network development in small industrial cooperatives using data foundation theory using structural equations.
Methodology: This research is of applied development type. The statistical population of the study includes 100 academic specialists, owners of industrial business clusters and experts of the Ministry of Cooperatives. To collect data in a quantitative part of 62 people through a questionnaire and in a qualitative part of 18 people were interviewed using theoretical sampling method and theoretical saturation was obtained.
Results: The fit of both parts of the data algorithm and the results of confirmatory factor analysis indicate the desirability and acceptability of the latent structure at the level of indicators and components. The good fit value of the model was 0.15, which according to the three values of 0.01, 0.25 and 0.36 as weak, medium and strong values for Gof, indicates a general fit close to the average level for the research model. Therefore, the findings of the model survey indicate the complete confirmation of the model obtained from the data theory method.
Conclusion: The model presented in this research, while having a systemic approach, has been obtained from successful experiences of developing cooperative clustering and is appropriate to the conditions and business environment of the region, is a native and practical model that leads to synergy while complementing each other's activities. And increase productivity, transfer of knowledge and technology, increase competitiveness and improve quality in the products of industrial cooperatives shrink.