A Systemic Approach to Integrate SOEs and SMEs in Business Ecosystem

  • Alfadhal Al-Hinai
  • Angela Espinosa
  • Richard Vidgen
Part of the The Political Economy of the Middle East book series (PEME)


This chapter focuses on the integration between state-owned enterprises (SOEs) and small and medium enterprises (SMEs) through national strategic projects (NSPs). It offers a holistic model for designing a new SOE in order to play a greater role in governmental initiatives towards economic diversification and create a platform for a value co-creation and experience-sharing. It also supports other governmental initiatives towards economic diversification like generating jobs, employing local workforce and building national knowledge. By performing systemic analysis of the organisation and its environment, suggestions are made to (a) enhance collaboration and promote alliances particularly with SMEs, (b) unfold the complexity resulting from the environment, (c) identify the SOEs’ core operational activities and (d) connect with numerous potential private companies.


System thinking Complexity Viable System Model State-owned enterprise Organisational design Economic diversification 



We are grateful to Mr. Said Al-Mandhari, CEO of the OBC, for providing us this opportunity to align the business interests of this new company with our scholarly interests. This collaboration was instrumental in supporting an action research case study based on and motivated by the OBC. We extend special thanks to all the OBC members and all members from other ICT organisations, who participated in our workshops and contributed knowledge assisting in the development of this publication and its models.


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Copyright information

© Gulf Research Centre Cambridge 2018

Authors and Affiliations

  • Alfadhal Al-Hinai
    • 1
  • Angela Espinosa
    • 1
  • Richard Vidgen
    • 1
  1. 1.University of HullHullUK

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