Abstract
Background: This paper highlights the effects of internal factors on restructuring state-owned enterprises (SOEs) and investigates how these factors have positive or negative effects on applying a new structure in SOEs companies. Yemen Telecom (YT) is an example of an SOE company that belongs to the government and has a social responsibility. By following scientific theories related to research’s factors, we tried to tie our hypotheses to the theories applied to make our factors near reality and be applicable in the future. Methods: In this study, we used empirical research by making an investigation by distributing a questionnaire amongst people who have a relationship with Yemen Telecom. Moreover, the structural equation model (SEM) was used in the current study as the statistical technique for the collected data. Results: The results of this study indicate that illiteracy in using the computer (IIUC) and applying the IT Software (AIS) has adverse effects on reconstructing telecom companies (RTC); also, AIS has a causality effect between illiteracy in using computers (IIUC) and RTC. Moreover, support from top management (SFTM), infrastructure (INF), and efficiency and effectiveness of managerial operations (EaE) have positive effects on RTC. Conclusions: This study concluded that IIUC, TMS, INF, and EaE have an apparent effect on RTC, and AIS has a causality effect between IIUC and RTC. Moreover, the study declares that there is less significance between AIS and RTC.
Highlights
These results show that there are robust relationships between the independent variables, which are the illiteracy in using the computer (IIUC), top management support (TMS), infrastructure (INF), efficiency and effectiveness (EaE), and reconstructing telecom companies (RTC)
The study results indicated that competition brings about productivity and quality improvements, whereas privatization does not significantly impact performance [37]
This study has shed some light on the empirical association of constructing a telecom company, information technology (IT) software, infrastructure, as well as efficiency and effectiveness
Summary
The unprecedented acceleration of internationalization by state-owned multinational companies (MNCs) to date has received limited research attention [1]. State-owned MNCs have been defined as “legally independent firms with direct ownership by the state that have value-adding activities outside its home country” [2]. The telecommunication sector, which is considered one of the main pillars of any society and admitted as the most profitable industry globally, is going fast through many dramatic changes in producing services. According to the world bank report in 2004 [3], telecommunications is deemed one of the three primary utility industries (water, electricity, and telecommunication) and involves the most competition. Yemen Telecom is part of telecommunication, which has become the most crucial state owned enterprise (SOE) because of its vast infrastructure and social responsibility but is lagging in terms of competitiveness and lacks sustainability
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