Factorial Analysis of the Critical Success Factors of Continuous Improvement (CI) Techniques in the Companies from Sohar Industrial Estate, Oman

Purpose: The research objectives were to analyze the role of continuous improvement (CI) techniques in manufacturing in Oman in the CI process and to investigate the crucial factors of CI and the application techniques of CI that have been implemented by the manufacturing companies during the CI process. Design/methodology/approach: A survey questionnaire was developed with the baseline of CI practices used by manufacturing companies in Oman and a convenient sampling method was used to collect the data. 146 completely filled-in questionnaires were collected from 75 manufacturing units out of the entire Public Establishment database. The data was tabulated, compiled. The robustness was tested along with the ranking tests and the factor analysis using SPSS and AMOS. Findings: The results reveal that the Omani manufacturing companies using structured CI programs had lesser product recalls, leading to increased overall sales, decrease in processing time. Further, it is also revealed that the CI culture and Employee Performance Measurement and Review are instrumental in translating into company savings. Research limitations/implications: This research was limited to Sohar Industrial estate only. As there are nine industrial estates in Oman, the research can be undertaken to study the CI practices adoption in all the other industrial estates as well. Social implications: Countries from all over the world are facing numerous challenges due to COVID-19. The paper will help the manufacturing companies in decision making towards the process improvement. Originality/Value: There are not many studies on continuous improvement practices within the Omani manufacturing industry and this paper examines the status of CI implementation in manufacturing companies in Oman.

Entrepreneurial Preferences in Oman: A Gender-based differentiation analysis

Purpose: The research objective was to critically analyze the factors responsible for the gender differences in Oman Entrepreneurship and to critically analyze the prevailing gender differences amongst the motivating factors and the survival factors in running the businesses in Oman. Design/methodology/approach: The research data was collected using a well-structured questionnaire and the data was obtained personally. 381 samples were collected from the population who were reported to be successful entrepreneurs. The selection was obtained from the entrepreneurs’ list provided by the Government Scheme Agencies in Oman like SANAD/RIYADA and the analysis was done using SPSS. Findings: The study revealed that both genders considered ‘To obtain a social status’, ‘To use innovative ideas’, ‘To become own boss’, and ‘Success of other entrepreneurs’ as the motivating factors. Further, males have also considered experiences and professional contacts whereas females have considered working independently and excelling with their self-confidence. The study also revealed that both genders insisted on Start-up capital, Self-confidence, Working capital, and Previous business experience, and Religious consciousness factors as the essential factors to run the businesses. Further, male entrepreneurs considered Training as one of the factors required to run the business whereas the female entrepreneurs considered the Right choice of location as a required factor. Research limitations/implications: It is recommended to address the gender differences of entrepreneurship in policies to support private-sector development in Oman and to design effective Entrepreneurship education programs for the future. It is required to follow up on the performance of the female-owned entrepreneurial start-ups so that their goals and objectives can be successfully fulfilled during their life cycle. It is also suggested that the training should be considered essential when designing strategies and policies stimulating entrepreneurial activity for both male and female entrepreneurs. Social implications: Through gender differences, the trends in marketing can be identified which will help to raise awareness for how to improve global marketing standards. Facilitating timely finance in the form of start-up capital, working capital is a must as the entrepreneurs in Oman consider financial assistance as a must to run the business. Previous business experience or educating them to gain experience in the line of their business interest will enable the entrepreneurs to become successful entrepreneurs. Originality/Value: There is no study on gender differences that have been carried out in Oman within entrepreneurial activities. This paper examines the gender difference prevailing amidst entrepreneurship in Oman. This research included only the successful entrepreneurs who were advanced under the Governmental Schemes through RIYADA/SANAD, Oman.

Can Salalah be a round the year Tourism Destination? – Visitors’ Experiences & Expectations

Purpose: The aims of the study were to identify and evaluate the internal controls used in a computerized accounting system of the SMEs, to identify and evaluate the merits and demerits of the internal controls used in the companies, and to identify the challenges in the implementation of internal control systems in the computerized accounting system of the SMEs. Design/methodology/approach: A questionnaire was prepared for the study and the responses were obtained through the questionnaire circulating the same among the public of the Al Batinah region of Oman. The samples were selected on a random sampling basis. 201 completed samples were obtained. Further, the study was restricted to the selected variables such as Infrastructure, Services available, Marketing & promotion, and Government support. Findings: The study revealed that Salalah was busy during the Khareef festival season and that there was a lack of infrastructural facilities such as Highways, Hygiene, Emergency health facilities, Telecommunication facilities, and personal amenity services. It was concluded that the marketing to promote Salalah as a year-round destination was inadequate. However, it was observed that the private sector started contributing to the development of Salalah tourism through establishing tourist offices/tourist guide centers/transports for tourists. Research limitations/implications: The study suggested that the Government should educate the youth of Salalah, train and prepare them for the future tourism industry. The study was conducted in the Al Batinah region of Oman and it can be extended to the entire people of Oman to know their expectations. Social Implications: Government should support the people of Salalah through land development schemes etc. and jointly with the private sector need to work involving all the stakeholders to improve tourism in Salalah to attract more people. Green initiatives for the sustainability of tourism in Salalah should be triggered as the natural eco-friendly environment will support it. Originality / Value: The study of its first kind as the study expects to add value to the tourism industry in Oman and particularly Salalah and the Dhofar region.

The Impact of COVID-19 on the Financial Performance of Bank Dhofar

Purpose: The aims of this research was to identify how COVID-19 had affected the financial performance of Bank Dhofar, to analyze the financial performance indicators, to evaluate how did Bank Dhofar react to the changes and to evaluate whether Bank Dhofar had taken right action take to mitigate potential financial performance damages. Design/methodology/approach: This research follows a descriptive analytics research method. The primary data was collected using a questionnaire. Samples were selected based on random sampling technique. 30 samples were collected from those who were related to and involved in the audit and accounting of the financial information services of Bank Dhofar. Once the data was collected, the analysis was done using Microsoft Excel. Findings: Based on the financial reports, COVID-19 has negatively impacted the profit generated of Bank Dhofar and also negatively impacted the Net Interest Margin (NIM). Bank Dhofar had also taken necessary precautionary measures against COVID-19 such as reserves and provisions. Research limitations/implications: Based on the results, it was recommended that the Bank focuses on the digitized platform for an even more efficient mean of working remotely and focus on employee morale, as these factors may negatively impact financial performance. Social Implications : This research would add collective knowledge on how COVID-19 affected the nation and could influence decision makers, rules and regulations. Originality / Value: No research was found regarding the financial performance of a bank in Oman during COVID-19. This research was an attempt to tackle the situation and thrown light.

New Distribution Capability (NDC) and its Effects on Travel Industry in Oman

Purpose of study The objectives of the study were to analyze the effects of transformation from GDS to NDC from the perspectives of the travel agencies in Oman; to find out the concerns of the travel agencies in Oman with regards to the implementation of NDC and to compare the benefits of NDC content with GDS from the perspectives of the travel agencies in Oman. Design/Methodology/Approach A questionnaire survey, telephone, and personal interview were conducted with 19 top leading travel agencies in Muscat region, Oman. Each Travel agent manager was given the questionnaire through google forms for the questionnaire. The telephone/ personal interview was also conducted. Around 78 employees were targeted out of which only 13 responded. The data collected was analyzed using Statistical package. Findings The findings support the fact that Oman being a small market with many small and medium players’ implementations of NDC is slow. The current pandemic has slowed it down even further. But their help being offered in terms of training and awareness by the NDC platform and some major airlines to speed up the adaptation. The study showed that the high cost of technological implementation is going to be one of the major barriers to complete switch to NDC system. As of now, the travel agents will be settling for GDS with NDC. Research Implications The adaptation by NDS has been slow especially by airlines. With IATA pushing the implementation, major airlines are slowly but surely adapting it as they can see the benefits they can derive. The customers too are benefiting from direct buying. The travel agencies in Oman especially small and medium-sized travel agencies are the ones who are most affected and there is not enough research being done to find what is it that is stopping them from adapting. Social Implications The pandemic has devastated the travel industry overall. Many small and medium businesses have been forced to shut due to lockdowns. Further, more people becoming comfortable with online shopping and willing to spend less, it will be a while before travel agents can start earning the same level of revenue they were enjoying before the pandemic. This will have an impact on unemployment as well as the inability to meet loan commitments. This can have a ripple effect. Originality/Novelty Few academic research has been carried out on NDC, especially in the Middle East. This research is the first of its kind which is dedicated to travel agents from Oman. The fact that NDC is set to revolutionize the shopping experience for the consumer one cannot ignore the fact that it is set to blow a dent in the revenues of the Travel agents.

Continuous Improvement Practices in Manufacturing Companies in the Sultanate of Oman

Purpose The aims of this study were to identify Continuous Improvement (CI) practices prevailing in the manufacturing companies with regards to Visual Management, Employee Engagement, Leadership and Risk Management; to identify continuous improvement tools that have been adopted by the manufacturing companies; and to analyze the critical success factors for implementing CI practices in manufacturing companies. Design/methodology/approach For this study, a survey questionnaire was used to collect the CI practices information from manufacturing companies in Oman. 146 samples were collected from 75 manufacturing units selected at random from the Public Establishment for Industrial Estate database. The data was analysed for reliability, robustness, ranking tests using Statistical Package for Social Statistics (SPSS). Findings The majority of the manufacturing firms were using only the CI program for the past five years. However, there was not substantial cost savings for these businesses. The overall sales increased, while the average processing time had declined and the product recalls also had increased. The most important factors identified for the effective implementation of CI in industrial firms were effective communication, top management encouragement, and employee involvement and conducive organization atmosphere. Social Implications Sultanate of Oman like any other GCC countries is undergoing a critical phase in economy because of the oil price plunge combined with ongoing COVID-19 pandemic. The paper will be of use to academics, researchers and continuous improvement practitioners. Originality/value So far, very few studies have been conducted in analyzing the factors correlated to CI in the Omani context and no study was carried out before in exploring the CI application in the Sultanate of Oman.

The Impact of Internal Control through Computerized Accounting System among Small and Medium Enterprises in Oman

Purpose: The aims of the study were to identify and evaluate the internal controls used in a computerized accounting system of the SMEs, to identify and evaluate the merits and demerits of the internal controls used in the companies, and to identify the challenges in the implementation of internal control systems in the computerized accounting system of the SMEs. Design/methodology/approach: The population of the study was the employees of the SME’s registered with Ministry of Commerce and Industry (MOCI) in Muscat, Oman. Samples were selected from this population on a random sampling basis. One-member employee from the SMEs representing the enterprise filled the questionnaire. The survey was conducted through a questionnaire using a Google form. 220 samples were collected from the population. The data collected was analyzed using data processing methods and Microsoft excel. Findings: The study found that SMEs were using computers to perform their daily transactions and the accounting software used by SMEs were cheap, of low quality and not proficient enough. One of the components of internal control system, i.e. monitoring was implemented by most of the SMEs and they also stated that they rarely hired an external auditor for auditing because of the expensive auditing fees. It was also stated that the security mechanisms were not properly implemented in the SMEs because of the expensive cost. Research limitations/implications: The study suggested that the Government should emphasize the SMEs to implement a good internal control system. This can reduce the errors and also increase the efficiency of operations. SOX in Omani context should be strictly implemented making it statutory and mandatory for all the SMEs in Oman and such statutory laws will help the auditors to abide by the rules and regulations to be followed. Social Implications : Government should support SMEs through providing education on the importance of internal control systems as most of the employees of SMEs are poorly educated/illiterates. The Government should set a price ceiling to the external auditors on the auditing fees exclusively for SMEs so that they can afford. Originality / Value: No study was carried before in relates to the impact of the internal control system through the computerized accounting system among the SMEs in Muscat, Oman. This study will through light on the statutory laws required for the sake of internal control measures required for the SMEs.

Examining the Effect of Budgetary Controls on the Financial Performance of Oman Telecommunication Company

Objectives The objectives of the study were to analyze the different budgetary control techniques that affect and how it affects the financial performances; to determine the ways of effective budgetary control affecting the financial performances and to identify and to evaluate the roles of top management in budgetary control techniques of the Oman Telecommunications Company. Research Methodology A questionnaire was prepared for collecting the survey. The respondents were the employees of the financial department and also officials and supervisors from other departments of the Oman Telecommunications Company. The questionnaires were distributed to 60 members and the data collected was analyzed using Microsoft Excel to obtain the frequencies, percentages, and descriptive analysis. Findings The results indicated that there is a positive relationship between budgetary control and the financial performance of the company. The results also indicated that the company preferred the Responsibility accounting technique, Revenue budgeting technique, and variance analysis technique. It is also reported that the management is informed of the deviations regularly, and the managers take corrective measures promptly as and when required. It was found that the top management of the Oman Telecommunications Company is aware of the importance of budgetary control techniques and supports them. Research Implication From the results, it was recommended that the company should give prior attention to developing budgetary control through proper planning, ensure continuous evaluation of comparative analysis of actuals vs. budget. It was also suggested that the company introduce enterprise resource planning (ERP) as the monitoring will become easy for the financial management in ensuring the productivity of the employees in the budgetary control process. Social Implication The study will allow financial managers in various companies to understand the serious nature of budgetary control techniques, their importance, and the extent of the impact which in turn will help them to improve efficiency in achieving financial performances. Novelty No study was carried out before to study the impact of budgetary control on the organizational performance of Oman Telecommunication Company. This is a maiden attempt.

Backlogs through Bottlenecks in Warehouse Pickups Areas: A Case Study - Gulf Nails manufacturing LLC

Purpose The study aims to investigate backlogs within the picking procedures, to find out what is causing storage picking bottlenecks, and to estimate its effect on creating throughout warehouse picking operations. Design/methodology/approach For this study, a survey questionnaire was used to collect data from a primary source. The staff of the Gulf Nails Enterprise was taken into account as the population of the study. A total of 20 responses were recorded from the population of 50 persons employed in the company. The collected data was analyzed quantitatively to bring out the results. Findings The findings confirmed that most of the warehouse pickup area bottlenecks occur due to the least adaptation towards technologies. It is shown that the bottleneck issue could affect 20 to 30 percent of the production line. It is also evidenced that not only tools but strategic planning and efforts by the staff are extremely important in solving a bottleneck issue. Research limitations/implications The study recommended that an inventory management system would keep the bottlenecks in check. Introducing modern technology could help to solve such issues so that human efforts would not be wasted. It is also suggested that the firm should not rely fully on technology solutions as it is also one of the causes of bottlenecks. Social implications This paper will help understand, recognize and solve the various issues faced by the majority of companies in the area of warehouse pickups, not only in Oman but outside as well. Originality/Value There has been a lot of studies and research on several areas of warehouse operations but none so far on the topic of the general pickup area of the warehouse.

Performance Evaluation of Oil and Gas Companies in Sultanate of Oman

Purpose: The purpose of the study was to analyze the impact of ROA and ROE on the net profit of the selected Oil and Gas companies (O & G) in Oman; to analyze the effect of ROA on the assets performances of selected Oil and Gas companies in Oman and to analyze the relationship between ROE and debt-equity on the performances of oil and gas companies in Oman. Design/methodology/approach: The secondary data was obtained from the annual reports of Oman's major telecom providers listed in the Muscat Securities Market (MSM) for the period 2015 to 2020. The data collected from the financial statements were analyzed using ratio analyses with the help of excel. The secondary data was obtained from the annual reports of selected O & G companies in Oman, listed in the Muscat Securities Market (MSM) for the period 2015 to 2020. The collected data was analyzed with financial ratio analysis using excel and SPSS to evaluate the financial performance of the companies. Findings: The study revealed that amongst the overall financial performances of the O & G companies, Oman Oil Marketing, Muscat Gases, and Shell Oman Marketing topped the list followed by National Gas and Al Maha Petroleum. The study also revealed that there is a correlation between Return of Assets (ROA) and Return on Equity (ROE), and Assets Turnover Ratio (ATO) and Net Profit Margin (NP). ROA, ROE, and Debt Equity Ratio (DE) do not have any correlation with NP which purports that there is no relationship between ROA & NP, ROE & NP, and DE & NP. Research limitations/implications: The study revealed that the financial performances of the O & G companies in Oman can be measured through analysis NP, ROE, ROA, ATO & DE but it is of no significance to the company’s financial performances as ROA, ROE has no impact on the Net profit margin of the O & G companies in Oman. Similarly, neither ATO nor DE has any impact on the net profit margin. Social implications: The study helps the investors and management of the O & G companies to understand the variables and the efforts to reform financial measures and take necessary action and suitable decisions to enhance the financial performances of the oil and gas companies. Originality/Value: The study was carried out with five major selected O & G companies of Oman and the study had relied mostly on quantitative techniques involving financial ratios and correlation analysis. The study can be extended to other oil-based economies countries as well.