Can HRM Alleviate the Negative Effects of the Resource Curse on Firms? Evidence from Brunei

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Author(s)
Darwish, Tamer K
Mohamed, Abdul Fattaah
Wood, Geoffrey
Singh, Satwinder
Fleming, Jocelyne
Griffith University Author(s)
Year published
2017
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Purpose: The resource curse literature suggests that firms operating in non-oil and non-gas industries in petrostates face considerable challenges in securing competitiveness and sustaining themselves. Based on a firm-level survey within a micro-petrostate, Brunei, the purpose of this paper is to explore the relationship between specific HR policies and practices and organisational performance; analyse, compare, and contrast oil and gas with non-oil and non-gas sectors; and draw out the comparative lessons for understanding the potential and performance consequences of HR interventions in resource-centred national economies. ...
View more >Purpose: The resource curse literature suggests that firms operating in non-oil and non-gas industries in petrostates face considerable challenges in securing competitiveness and sustaining themselves. Based on a firm-level survey within a micro-petrostate, Brunei, the purpose of this paper is to explore the relationship between specific HR policies and practices and organisational performance; analyse, compare, and contrast oil and gas with non-oil and non-gas sectors; and draw out the comparative lessons for understanding the potential and performance consequences of HR interventions in resource-centred national economies. Design/methodology/approach: Data for this study were generated from a primary survey administered amongst the HR directors in companies operating in all sectors in Brunei. A statistically representative sample size of 214 was selected. Findings: The authors confirmed that firms in the oil and gas sector indeed performed better than other sectors. However, the authors found that the negative effects associated with operating outside of oil and gas could be mitigated through strategic choices: the strategic involvement of HR directors in the affairs of the company reduced employee turnover and added positively to financial returns across sectors. Practical implications: Developing and enhancing the role of people management is still very much easier than bringing about structural institutional reforms: the study confirms that at least part of the solution to contextual difficulties lies within, and that the firm-level consequences of the resource curse can be ameliorated through a strategic choice. Originality/value: The nature of the present investigation is one of few studies conducted in South East Asia in general and in the context of Brunei, in particular. It also contributes to the authors’ understanding whether HR interventions can ameliorate the challenges of operating in a non-resource sector in a resource-rich country.
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View more >Purpose: The resource curse literature suggests that firms operating in non-oil and non-gas industries in petrostates face considerable challenges in securing competitiveness and sustaining themselves. Based on a firm-level survey within a micro-petrostate, Brunei, the purpose of this paper is to explore the relationship between specific HR policies and practices and organisational performance; analyse, compare, and contrast oil and gas with non-oil and non-gas sectors; and draw out the comparative lessons for understanding the potential and performance consequences of HR interventions in resource-centred national economies. Design/methodology/approach: Data for this study were generated from a primary survey administered amongst the HR directors in companies operating in all sectors in Brunei. A statistically representative sample size of 214 was selected. Findings: The authors confirmed that firms in the oil and gas sector indeed performed better than other sectors. However, the authors found that the negative effects associated with operating outside of oil and gas could be mitigated through strategic choices: the strategic involvement of HR directors in the affairs of the company reduced employee turnover and added positively to financial returns across sectors. Practical implications: Developing and enhancing the role of people management is still very much easier than bringing about structural institutional reforms: the study confirms that at least part of the solution to contextual difficulties lies within, and that the firm-level consequences of the resource curse can be ameliorated through a strategic choice. Originality/value: The nature of the present investigation is one of few studies conducted in South East Asia in general and in the context of Brunei, in particular. It also contributes to the authors’ understanding whether HR interventions can ameliorate the challenges of operating in a non-resource sector in a resource-rich country.
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Journal Title
Personnel Review
Volume
46
Issue
8
Copyright Statement
© 2017 Emerald. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Human Resources Management
Business and Management
Policy and Administration
Psychology
Social Sciences
Industrial Relations & Labor
Psychology, Applied
Management
Business & Economics