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Advances in Social Sciences Research Journal – Vol. 8, No. 10
Publication Date: October 25, 2021
DOI:10.14738/assrj.810.10944. Abri, S. H. A., & Matriano, M. T. (2021). The Strategic Management Process for Innovation Activities of OMAN Telecommunication
Company (OMANTEL). Advances in Social Sciences Research Journal, 8(10). 1-8.
Services for Science and Education – United Kingdom
The Strategic Management Process for Innovation Activities of
OMAN Telecommunication Company (OMANTEL)
Mr. Sultan Humaid Al Abri
MBA, Center for Post-Graduate Studies
MiddleEast College, Muscat, Oman
Dr. Maria Teresa Matriano
Assistant Professor, Center for Post-Graduate Studies
MiddleEast College, Muscat, Oman
ABSTRACT
This research will investigate on the strategic management process of the
entrepreneurship and innovation activities of Oman Telecommunication Company
(OMANTEL). It will assess the chosen organization’s (Omantel) characteristic that
is facilitating innovative process, implement activities that establishes an
innovative environment within the structure of an organisation and analyse the
strategic approach of the company’s innovation management. Moreso, this will also
outline a discussion on the dynamics and characteristics of Omantel company and
how the ICV policy could be improved; and will analyse as well the strategic
management process adopted by Omantel company in driving entrepreneurship
and innovation. To achieve these objectives, the relevant sources of information to
be utilized include online articles, books and relevant entrepreneurship,
innovation and SME journals. Finally, recommendations were made to improve the
organization’s innovation process; foremost of which is a program that would
provide new skills and knowledge to employees to foster creativity and innovation
across organization.
Keywords: entrepreneurship and innovation, innovation, strategic management process,
forces that initiate innovation, factors for successful innovation process
INTRODUCTION
Entrepreneurship can be defined as the process of developing new business ventures and or growing
the existing ones (Wiklund et al. 2014). Many organizations across Oman have ventured into
entrepreneurship as a way of expanding their businesses to achieve their goals by raising their
profitability index. In this regard, therefore, many organisations are exploring new venture ideas and
opportunities and implement them in order to increase their revenue streams and expand their growth.
One of the key elements of entrepreneurship is innovation, which is the process of generating new
and viable business ideas. This is significant in entrepreneurship as it is a prerequisite for
entrepreneurial firms to gain a competitive and develop a sustainable business (Zhao 2015).
Omantel Telecommunication company is the first and leading Omani integrated telecom service
provider founded in the year 1996. It is a public company operating in the telecommunication industry
by providing various telecommunication services such as the mobile, internet and fixed-broadband
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services. The company is seeking to empower businesses as well as individuals by connecting them
to each other across the glove (Omantel 2020). Also, the company is working with the government
authorities, multinational corporations, small and medium-term enterprises as well as individuals by
capitalizing on the ultra-low latency networking utilized in enabling digital transformation and
innovation. Furthermore, the company’s headquarters is located in Ruwi and is currently has a
workforce of approximately 2690 employees.
THE INNOVATION CHARACTERISTICS OF OMANTEL AND THE ICV POLICY
There are numerous characteristics of Omantel company which describes the organization. One of its
characteristics is the continuous engagement in innovation. In this regard, Omantel company is
continuously coming up with new business processes, products as well as technological systems
which meet its organizational and stakeholder needs and improves the organizational productivity.
Other notable characteristic is flexibility as evident by the company’s flexible organizational structure
which accommodates new systems, approaches and leadership which are implemented across the
organization. It also offers flexible data packages to accommodate the internet needs of the lower- middle- and high-class clients (Omantel 2020). Furthermore, the company is noted for its agility due
to its ability to move quickly and easily in responding to a change and /or challenge of the business
environment (Young 2017). The company is also agile in addressing their customers issues, queries
and/or challenges they faced when consuming the company’s telecommunication services and
products. On the other hand, the organization leadership and resources are so dynamic in enhancing
the employee performance (Carlton 2014). Its’ leadership involves exemplary oversight as well as
hands-on approach that is driving the organizational performance, knowledge and innovation to
greater success. The resource control of the company focused hugely on the establishment of the
effective systems for information and data gathering that will assist in determining whether the
organizational goals are met or not. Moreover, the execution of company goals is so dynamic in its
implementation, evaluation and following-up of the organizational expected deliverables. In order for
this to be achieved, the company’s management allocates responsibilities as well as resources to
employees on the basis of their skills (Bhasin 2021).
Based on innovativeness, the innovative characteristics of the Omantel company is that it is very
creative in coming up with new technological solutions for its clients, for instance, it was the first
telecom company to adopt the 5G internet. The innovative characteristic of this company is that it
focuses on competitive-collaboration which is aimed at boosting the competitiveness of the
organization (Mintzer 2014). In this case, the Omantel company has collaborated with the government
agencies and private entities in boosting its business growth and expansion. Furthermore, Omantel
company’s ICV policy is Omanisation and training of staff in order to contribute to the development
of the human capability and stimulate the productivity of Oman economy. In order to improve on the
ICV policy for the maximum benefit of Omantel company and other companies in general, the
management of companies keeps on training all employees in order to achieve the necessary skills
and competencies which can be leveraged to improve the productivity of the company, which in turn
contribute to the growth of the economy (Natalia 2020). The company also ensured that majority of
their workforce are the local Omanis so as to achieve Omanisation of the workforce.
THE COMPANY’S DEGREE OF INNOVATIVENESS
The degree of innovativeness describes how innovative process and newness of innovation within the
organization. In this regard, Omantel’s degree of innovativeness is said to be high and incremental
since the company is fostering innovation from time to time to improve the quality of the telecom
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Abri, S. H. A., & Matriano, M. T. (2021). The Strategic Management Process for Innovation Activities of OMAN Telecommunication Company
(OMANTEL). Advances in Social Sciences Research Journal, 8(10). 1-8.
URL: http://dx.doi.org/10.14738/assrj.810.10944
services and products it offers to its customers across Oman. For example, the company entered into
an agreement with Sultan Qaboos University on a cooperation programme that will enhance the
establishment of a state-of-the-art innovation and tech centre at the university so as to boost
innovations in the telecommunication sector (Omantel, 2019). Also, the Omantel company has
recently announced the launching of its innovation labs, which will promote innovation as well as
entrepreneurship in new and emerging technologies and in turn, contribute to Omani Vision 2040.
Under this initiative, Omantel company will be leveraging its expertise, and access to technology to
develop a tech-based start-up system (Oman Observer 2021). Furthermore, the company was the first
telecom company to adopt the 5G network which improve the efficiency and effectiveness of the
internet services.
THE STRATEGIC FORCES IN DRIVING INNOVATION AND ENTREPRENEURSHIP
The strategic forces that initiate the processes of entrepreneurship and innovation are those factors
which encourages, causes and or makes the acts of entrepreneurship and innovation to commence
within an organization. These strategic forces can either be internal i.e., originate within the
organization and or external i.e., originates from outside the organization which initiates the activities
of entrepreneurship and innovation across the organization (Ibrahim and Goodwin 2013).
The increasing number of companies and emergence of strong winds of economic changes across the
Sultanate and beyond have triggered companies to think outside the box. Omantel, for one, is working
round the clock to respond to this by investing on innovation (Matriano and Khan 2019). For instance,
this company recently set up innovation labs to help cultivate entrepreneurial skills among its
employees and at the same time accelerate growth of the country’s-based start-ups across
technological verticals such as 5G, IoT and Cybersecurity. To achieve this, Omantel has subjected
itself to certain forces that enhance entrepreneurship and innovation. These forces include but not
limited to:
• Partnerships and Collaborations
The company’s collaboration and partnership with government, corporations, technology partners,
and academic institutions has enabled this company to build a robust interconnected technology
startups ecosystem in Muscat and across the country. For instance, this company recently partnered
with Sultan Qaboos University whereby they inked an agreement on a cooperation programme that
contributed to establishment of state-of-the-art innovation and technology transfer at the institutions
(Al Shibli and Al-Dhahri 2021). These enables company’s stakeholders source expertise, accessing
value added events as well as leveraging its brand positioning for exposure.
• Creating Network with Other Organizations
This is another force that continuously encourage innovation at Omantel. This networking has
generated business leads whether it is a new partner for a future endeavor or new customer. This has
also gone a long way in ensuring that people are up-to-date on the latest trends in the industry and
more importantly, provide organizations with length of knowledge from which to draw ideas and thus
innovation and entrepreneurship as it partakes in information exchange (Al Shibli and Al-Dhahri
2021).
• Training and Empowerment Initiatives
This involves transmission of innovation to the personnel to teach them knowledge and skills as well
as attitudes required in their daily operations. It helps employees get the right mindset for employee’s
development. Omantel and Huawei agreed to establish a regional ICT training centre at Omantel
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headquarters to support talent training and development here in the country. These forces have gone
a long way in leveraging this company’s expertise, partnerships, reach and access to technology to
contribute to Oman’s vision 2040 as well as enhancing innovation and entrepreneurship in new and
emerging technology.
SUPPORT TO INNOVATION ACTIVITIES
Government plays a significant role in fostering and promoting entrepreneurship and innovative
activities within an economy and particularly the organizations that operates within the economy. The
government enhances this by providing a stimulating business environment, enactment of the
favorable legislations for business, improving the institutional capacities, establishment of the
essential infrastructures, etc. (Obaji and Olugu, 2014) All these encourages and fosters and
encourages innovative and entrepreneurial activities.
According to Al Balushi (2017) Omani government has come in handy with various initiatives which
are geared towards strengthening innovation and entrepreneurship ecosystem around the country.
These innovative initiatives and programs support innovation and creativity especially across various
government entities offering effective proposals that enhances innovative solutions and improve not
only performance, but also increase efficiency in various fields. These programs include support on
financial start-ups, R&D and setting up research and innovation institutions, as explained below:
• Funding Support
Oman government offers financial support through institutions such as the Oman Technology Fund,
and the Innovation Development Oman Holding (Al-Balushi 2017). This financial support has gone
a long way in supporting youth innovative projects in Muscat and beyond. This has subsequently
improved Oman’s ranking on the early-stage venture deals indicator thus ranking Oman fourth
position in Middle East and in MENA region.
• Formulating Innovation Policies
Oman government also is promoting innovation through formulation of good policies that helped
provide an up-to-date assessment of the framework conditions and interactions required for a
functional innovation system (Sanyal and Hisam 2018). These policies also help in drawing an
attention to policy requirements for strengthening the national innovation systems and more
importantly, providing a number of recommendations for strengthening policies and measures so as
to provide improve technological capacity and enhance innovation.
• Setting Up Institutions e.g., Ministry of Higher Education, Research and Innovation
This institution is the country’s exclusive research funding body and leading of research development.
In other words, it serves as a focal point and hub dedicated to promoting and supporting not only
research but also innovation.
• Encouraging Research and Development (R&D)
The Oman government through The Research Council (TRC) is reaffirming the harmony between
national innovation strategy vision with the country’s vision 2040 which is reinforced by political
will and continuous institution integration hence resulting in various initiatives in all fields as
evidently seen innovations, institutions and efforts (Sanyal and Hisam 2018).
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Abri, S. H. A., & Matriano, M. T. (2021). The Strategic Management Process for Innovation Activities of OMAN Telecommunication Company
(OMANTEL). Advances in Social Sciences Research Journal, 8(10). 1-8.
URL: http://dx.doi.org/10.14738/assrj.810.10944
OMANTEL’S STRATEGIC ENTREPRENEURSHIP AND INNOVATION PROCESS
To a prospective firm to successfully implement strategic entrepreneurship and innovation process,
there are certain processes that the company needs to follow. This process divides the uncertainties
within an innovation project into clearly subdivided steps and decision steps to drive development
forward efficiently while avoiding risks that come with it (Mazzei 2018). This process starts with the
problem identification all the way to implementation.
Step 1: Identifying the Problem
There are often various challenges experienced by companies in their day-to-day operations. For
instance, at Omantel, these problems range from customer service problems to infrastructure and even
ways of developing highly innovative products. Efficient identification of needs that these consumers
struggle with on daily basis including gaps in the market ensures that needs are discovered which
then allow successful prototype and products to be catalyzed.
Step 2: Developing Solutions
Once this company has clearly identified the problem, it is now time to come up with ideas or
solutions that will resolve the problem i.e., doing some fact finding and research regarding the nature
of the problem and its causes (Mazzei 2018). For instance, there may be gaps with customer services.
To address this, it requires creativity and brainstorming including creating some contingency plans
and adopting a customer relations management system.
Step 3: Testing the Solution
Once the identification of the problem and developing solution is complete, it is high time to assess
how well it performs. This test helps to identify failure points or difficulties which then suggest the
elements of the design that need to be improved. For instance, if the intended innovation is focused
on customer feedback, the company need to pay a closer look at the customer feedback and if it is
product focused innovation, this requires not only careful, but also a comprehensive market research
to determine demands.
Step 4: Implementation
This is the final stage of this process and it involves putting innovation into practice (Mazzei 2018).
There is uncertainty around innovation outcome and whether to keep it instead of embracing old
practices. In this case, any of the problem solutions that is established to have reached maturity is
implemented. This is accomplished by facilitating workshop training to lower switching costs. Others
include motivating and encouraging employees to share testimonials on how the innovation is
incorporated into the company’s activities effectively and without undue challenge.
KEY SUCCESS FACTORS TO SUCCESSFUL INNOVATION PROCESS
A strategic entrepreneurial and innovative venture is established with the aim of fulfilling a particular
goal of the entrepreneur. The achievement of this entrepreneur’s goal is determined by the success of
the venture established and implemented. In this regard, therefore, the success of the entrepreneurship
and innovation process is measured for purposes of ascertaining or determining whether it is
successful or not by use of the key success factors (Ibrahim and Goodwin 2013). These are the factors
which measures and ascertains the success of strategic entrepreneurial and innovative process.