Organisational Effectiveness of Private Enterprises and Diversification in the Gulf Countries

Abstract

In the context of Gulf countries, it becomes important that business must redefine its boundaries and play its role effectively as the Gulf countries are undergoing an extraordinary economic and social transformation—a transformation that has an impact on the entire global economy. The development strategies of GCC governments, to an extent, rely on the local private sector for diversification, job creation and the building of a more productive and less oil-dependent ‘knowledge economy’. This chapter attempts to review the importance of the diversification and the role which private sector plays in the development of economy. The chapter is based on the conceptual model that incorporates McKinsey’s 7S Framework to assess the extent to which specific management practices contribute to the effectiveness and productivity of the organisations and provide competitive advantage.