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

Purpose: The resource curse literature suggests that firms operating in non-oil and gas industries in petrostates face considerable challenges in securing competitiveness and sustaining themselves. Based on a firm level survey within a micro-petrostate, Brunei, this study explores the relationship between specific HR policies and practices and organisational performance, analysing, comparing and contrasting oil and gas with non-oil and gas sectors, and draws 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 was 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: We confirmed that firms in the oil and gas sector indeed performed better than other sectors. However, we 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 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 our understanding whether HR interventions can ameliorate the challenges of operating in a nonresource sector in a resource rich country

Global commitment towards sustainable energy

Energy is crucial to economic and social development and improves quality of life. However, fossil fuel energy produces greenhouse gases (GHGs) and cannot be sustained for a long time. It is essential to tackle these problems by moving towards renewable and sustainable energy. Some countries, including those in the Arabian Gulf region, are still in the appraisal stage of adopting different forms of renewable energy. This paper reviews the business potential and likely GHG reductions associated with adopting renewable energy in Oman. It is revealed that 1·9 Mt of annual carbon dioxide emissions could be cut by producing 10% of the country’s electricity from renewables. The paper further discusses the global sustainable energy commitment under the UN Framework Convention on Climate Change and reviews the 2030 targets of some countries that are high producers of GHGs. It is anticipated that if all these planned targets are achieved, the total sustainable energy contribution could grow by nearly 11 000 TWh by 2030. These plans provide guidance for those countries still preparing to submit their plans to the UN