Predictors and Outcomes of Successful Localization in the Aviation Industry: The Case of Oman

Abstract

Localization has encountered substantial focus in academia as well as practice; however, scarce studies have empirically examined this theme within tourism-related sectors in Oman, including the aviation sector. That is why the purpose of this paper is to develop and test an integrated model of the key predictors and outcomes of successful localization within the aviation industry. It also evaluates the mediating role of knowledge sharing ability between human resources development (HRD) practices and localization as well as the moderating effect of organizational commitment on the link between localization and firm performance. This paper is based on primary data collected from 194 employees operating in the national aviation sector in Oman. Based on PLS-SEM, the results indicated that HRD practices (i.e., training, performance appraisal, and rewards) have a positive impact on expatriates’ ability to share knowledge with national staff, and thus positively impact the localization success. Additionally, the firm's performance is positively influenced by successful localization. Knowledge sharing does not mediate the link between HRD practices and successful localization, but the results confirmed the interactive impact of organizational commitment on the direct connection between localization and performance. The findings contribute significantly to the research community and provide practical guidelines and managerial implications.