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All websites and blogs with more backlinks have their posts on 1-2 pages in SERPs. I have one question that if will increase backlinks of my website then my website can also get higher position in search engine results?

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In basic terms... yes.

More realistically... the quality of those links is what really matters. Getting good links will push your site up the listings, but bad (spammy) links can potentially get a site penalised. Also, some links have a "nofollow" tag which means they have no benefit.

If you google "Page Rank" you should find out the theory behind this.

If you are thinking "I'll just spam some links", then don't. Focus on writing interesting content and telling real people about it. Trying to cheat with spam links is risking a penalty. Getting genuine links should see you rise naturally.

Here's Google on what not to do - https://support.google.com/webmasters/answer/66356?hl=en

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Yes sorta. Backlink counts often do not mean anything. I used to have over 8000 backlinks, but because these were mostly created by scraper sites, the value of most links was near zero. I have sense solved this problem.

The quality of the linking site is important as well as authority, PageRank of the specific page, any trust authority of the site, and so on. If you are going to create backlinks, make sure they are from reputable, honest, and high value sites. You cannot control who links to you. In this case, where there are low quality links created, you want to make sure that there are enough higher quality links that the ratio offsets any negative effect. Fortunately, most search engines are rather forgiving realizing that many of these low quality links are inevitable. Therefore, it generally does not take too many higher quality links to make a difference. The more high quality links you can create the better. Paying attention to the link quality ratio and improving this ratio, really helps.

One last word. Organic links, that is, links made by others and not by you, are often the best. Yes there will be lower quality links, however, if you create outstanding content, then high quality organic links will be made and your site will perform very well.

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Yes back link is a huge factor. But Google uses about 200 ranking factors in their algorithm. Here you go with all these: http://backlinko.com/google-ranking-factors

Watch this graph to know the percentage of each ranking factor.

SEO Ranking Factors in 2014

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