Challenges of indigenous employment in the private logistics sector in developing economies: an in-depth study of the Sultanate of Oman.
Oman is actively developing its logistics sector to diversify the economy and create jobs for its citizens, which aligns with the government's Vision 2040. However, the country faces a growing number of indigenous job seekers. This research explores the challenges of increasing indigenous employment (Omanisation) in Oman's private logistics sector across five themes: employment and Omanisation data, government policies, businesses' employment practices, Learning and Development (L&D), and economic and technological influences. The themes emerged from the literature review. This investigation was grounded on the stakeholder theory and adopted a mixed-methods approach. Study One was qualitative and included ten interviews, a case study in a third-party logistics company, and document analysis. NVivo was used for data analysis. Findings indicated: (i) Employment and Omanisation data inconsistencies, hindering a clear view of job opportunities. (ii) Government policies were found to be supportive yet inconsistent and occasionally contradictory. (iii) Employment practices - logistics companies struggle to attract Omanis due to low pay and the physical nature of the work. (iv) Learning and Development - Academic programmes require reform, with more emphasis on vocational training. (v) Economic and Technology - Technology could reduce costs and support greater Omanisation. Given intense regional competition, maritime logistics should be prioritised to leverage Oman's strategic location. Study Two involved a survey, with revised themes and framework, excluding employment and Omanisation data because of sufficient findings in Study One. The survey was sent to 100 companies, with 42 responses. Using a Factorial ANOVA in SPSS, the study analysed the impact of 20 variables (identified in Study One) relating to Omanisation across operational, middle, and senior management levels. The results showed that government policies and Human Resources (HR) strategies significantly influence Omanisation across all levels. Government support notably affects middle and senior management, whereas Omani management skills affect only senior roles. Regional competition, total rewards, performance measurement, free-zone Omanisation exemptions, and cost-saving strategies influence Omanisation among operational staff. Study Two's findings were integrated with and compared to Study One's conclusions, revealing both similarities and differences. This research makes significant practical and theoretical contributions to understanding Omanisation in the private logistics sector. In practice, it provides evidence-based guidance for HR managers to strengthen workforce long-term planning and improve attraction and retention strategies; for logistics managers to empower Omani employees and leverage technology to support higher localisation; and for education and training providers to better align programmes with labour market needs. Theoretically, drawing on stakeholder theory, the study extends indigenisation literature by demonstrating that Omanisation outcomes depend on interdependent, multi-stakeholder interactions rather than isolated policy interventions. Its tier-based analysis of operational, middle, and senior management further advances understanding by revealing differentiated challenges and drivers across organisational hierarchies. Key recommendations include strengthening Omanisation data and regulations, closely monitoring progress, and providing greater support to businesses and job seekers. Logistics companies should prioritise the qualifications and empowerment of Omanis, as well as the provision of comprehensive financial and non-financial incentives. Education and training institutions are advised to review job seekers' and current Omani employees' L&D programmes, ensuring alignment with market needs and emphasising vocational training.
Human resources management, Indigenisation, Omanisation, Oman, Employment, Logistics, Developing economies
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