Kuwaiti Companies Research Articles

Corporate network formation in Kuwait: board interlocks network analysis using exponential random graph models

PurposeInterlocking directorates are a common phenomenon across several markets around the world. Yet, the institutional environment and the role of corporate elites in forming board networks promote some developing markets as a unique setting to understand the corporate boards network structure. This study aims to first explore the board directors’ network of all publicly listed companies in Kuwait. This paper then evaluates the effects of exogenous factors and endogenous network structural processes on the likelihood of board interlock.Design/methodology/approachThis study analyzes the interlocks network structures of 167 listed companies in 13 different market sectors in Kuwait relying on hand-collected directors’ data and using four measures of network centrality: betweenness, degree, closeness and eigenvector. The authors predict board interlocks using exponential random graph models (ERGM) and firm-level information from the Bloomberg database.FindingsThis study observes that both the firms and directors’ networks consist of 55 components, with the largest component containing about half of the total number of firms/directors. The firm’s network consists of one giant component of 85 firms, including all but one bank. This study shows the importance of endogenous network variables, such as the number of edges, centralization and triangles on the estimation of the factors that promote the board interlocks. Highly centralized firms are less likely to interlock with other firms, while two firms that are interlocked with a common third firm are more likely to interlock.Originality/valueThis paper is the first to analyze in-depth the structure of the directors network of companies in Kuwait. This study illustrates the complex map of interfirm and directors social networks in Kuwait. To the best of the authors’ knowledge, this study is among the first to exploit ERGM in the context of board interlocks to account for potential cross-dependencies and emergent network structures. Managers can identify the director interlock with other firms in the network and take advantage of the connection as a source of external knowledge and influence.

Reconnecting sustainability reporting with earnings management: empirical evidence from Kuwait

PurposeThis study aims to examine the impact of environmental, social and governance (ESG) reporting on accruals-based earnings management (AEM) activities in Kuwait.Design/methodology/approachBased on a random-effects regression analysis, this study examines the relationship between sustainability reporting (SR), as determined by the intensity degree method and EM, as measured by AEM, using panel data from 37 listed Kuwaiti companies on the Kuwait Stock Exchange between 2017 and 2021.FindingsEmpirical results reveal that SR affects EM in Kuwait. It appears that socially responsible Kuwaiti firms concentrate their efforts on fostering transparency and integrity in their interactions with stakeholders rather than engaging in misleading practices.Practical implicationsThis study suggests a range of practical implications in Kuwait and similar economies. The findings highlight that SR can be advantageous for individuals, policymakers and corporations by promoting positive impact, addressing sustainability targets, building stakeholder confidence, reducing the risk of exposure to environmental, social and ethical liabilities and enhancing public well-being.Originality/valueThis study creates a unique ESG data set for Kuwait, unavailable in academic research. Building upon previous study that focused only on the environmental aspect (Gerged et al., 2020), this research, however, adopts a broader approach by investigating the overall impact of ESG reporting on EM in Kuwait, making it the first study to explore this relationship in this country.

Examining the Role of Employee Social Intrapreneurial Behavioural and Job Satisfaction as Mediators of Employee Commitment

This study investigates the series of mediating effects of employee social intrapreneurial behaviour and job satisfaction on innovative organizational culture and employee commitment. This research aims to explore the relationship between an innovative organizational culture, employee intrapreneurial behaviour, employee job satisfaction, and employee job commitment in the manufacturing sector of Kuwait, a developed economy. Literature reviews analyses core concepts and their associated domains to discover gaps in existing research by examining definitions, dimensions, and relevance. The examination of relevant research identified significant knowledge deficiencies. The framework examines employee social intrapreneurial behaviour by incorporating several aspects such as idea generation, idea promotion, and idea realization. The current study utilized quantitative research methods. The researcher utilized SPSS version 28 to analyses the numerical data collected through a questionnaire to meet the study questions. The questionnaire was distributed using both computerized and self-administered ways to increase the response rate. We have obtained an extensive list of contact names for all manufacturing companies in Kuwait. The study is based on three primary theories: Self Determination Theory, Social Exchange Theory, and Theory of Planned Behaviour. This study aims to develop a new formula to promote a culture of social innovation. The research findings suggest that Employee Social Intrapreneurial Behaviour (ESIB) has a notable influence on manufacturing enterprises in Kuwait. Employee social intrapreneurial behaviour and job satisfaction were shown to have a mediating impact on innovative organizational culture and employee commitment. The research's theoretical framework enhances managers' understanding of the significance of intrapreneurship and how organizations can facilitate its development at both individual and organizational levels. Received: 28 January 2024 / Accepted: 28 April 2024 / Published: 5 May 2024

The impact of resilience on corporate reputation in Muslim Countries

This study addresses the relationship between resilience and Corporate Reputation (CR) in Muslim countries (Iran, Bahrain, Iraq, Kuwait, Saudi Arabia, and UAE). The problem of the study was determined by the nature of the relationship between financial flexibility and the reputation of banking companies, which is a problem in itself. And studying the methods used in banks to face reputational risks and knowing the extent to which indicators of financial flexibility can be applied in banks, and knowing what is the level of relationship between the indicators of the study variables and their nature
 This study investigates whether and how resilience affects CR in Muslim countries. This study is causal correlational. It used information from the companies listed on Tehran Stock Exchange in Iran, Bahrain, Iraq, Saudi Arabia, and UAE from 2014 to 2019. Hypotheses are tested via Logistic Regression. Findings show a positive and significant relationship between resilience and CR in the studied Muslim Countries. This relationship is higher in more resilient companies with higher reputations. The coefficient of determination and McFadden’s value indicates that Bahrain companies have the highest relationship while Kuwaiti companies have the lowest. Since this study is conducted in the emerging financial markets of Iran, Bahrain, Iraq, Kuwait, Saudi Arabia, and UAE, with their unique economic and political situations, it provides a wealth of information. 
 This study and the mentioned ones found that enhancing the firm’s resilience improves the interested parties’ perceptions because the company’s reputation is regarded among its performance, behaviors, and policies (Lombardi et al., 2020). Managers should cooperate more with their colleagues, suppliers, distributors, and customers. Therefore, they can receive support during the crisis and be more resilient. Therefore, according to the hypothesis test results, companies must pay considerable attention to resilience.

Microbiological Indoor and Outdoor Air Quality in Chicken Fattening Houses.

This study was conducted at one of the largest poultry companies in Kuwait during November and December 2019 to evaluate the microbiological threats of Escherichia coli (APEC), Salmonella spp., and Aspergillus fumigatus to chickens in fattening houses by counting and identifying the microorganisms by culturing and pyrosequencing analysis. During the fattening cycle, the temperature and humidity ranged between 23.6°C and 29°C and 64.1% and 87.1%, respectively. The total bacterial population and Aspergillus fumigatus measured in the indoor and outdoor air exhibited a linear relationship during the fattening cycle. The total bacterial and Aspergillus concentrations determined during the cycle ranged between 150 and 2000 CFU/m3 and 0 and 1000 CFU/m3, respectively. E. coli and Salmonella spp. concentrations determined during the cycle ranged between 1 and 220 CFU/m3 and 4 and 110 CFU/m3, respectively. Pyrosequencing analysis of the air inside the houses at the end of the cycle revealed extensive biodiversity in the microorganisms, detecting 32 bacterial genera and 14 species. The identified species belonging to the genera Corynebacterium, Haemophilus, Streptococcus, Veillonella, and Aspergillus were identified as potentially affecting human and broiler health. The emission of potentially pathogenic bacteria to the outdoor environment from chicken housing can pose a considerable risk to human health and environmental microbial pollution. This study could guide the development of integrated control devices for monitoring microbes in broiler production facilities during chicken collection for transport to slaughterhouses.

Differences Between Supplier and Customer Experiences of Marketing Mix in the Construction Industry

Suppliers often contend they “know” best when it comes to what the customer wants. Yet, despite using advanced models, such as the 7P (product, place, price, promotion, people, process, and physical evidence) marketing mix, companies can fail to meet their service objectives because customers perceive services from their own perspective. This difference in perspective presents a knowledge gap that requires it to be filled in an objective way. This research study elucidates how differences between supplier perception and customer perception of delivery are objectively identified. In this study, the target population consisted of the managers of the construction companies in Kuwait and their customers as individual property owners of residential, commercial, and industrial buildings. Discrete questionnaires consisting of the 7P marketing mix constructs were created specifically for the supplier and customer. Using a five-point Likert scale, data from 210 supplier staff and 210 customers were collected from the construction industry. The structural equation modeling (SEM) established the beta coefficients of latent variables reflecting the perceptions of both the supplier and customer. Both models were tested for internal consistency reliability using Cronbach’s alpha, and convergent validity was established based on the standardized factor loading and average variance extracted (AVE). In addition, discriminant validity was established using AVE and correlations. The differences between the standardized coefficients of supplier and customer coefficients were then tested against their pooled variance. The results show that suppliers tend to have a higher perception of their delivery on some constructs, while customers maintained a higher perspective on other constructs, that is, suppliers perceived that their product, place, price, and process were adequate, while customer data indicated otherwise. However, it was promising that the constructs of promotion, physical evidence, and people were more favorable among customer perceptions than supplier expectations. Interestingly, customers perceived that the people factor behind the construction industry was excellent. The findings recommend that suppliers scale their perceptions to be closer to the reality perceived by the customers. The study concludes that this approach of evaluating supplier–customer perceptions is highly beneficial to the supplier.

Employee motivation in construction companies in Kuwait

Kuwait is mentioned as one of the multi-national workplaces. This paper aims to identify the motivational factors that affect employees’ performance in Kuwait construction industry. Many studies conducted regarding motivational factors for construction workers and site engineers, but there is limited research work aimed to identify the motivational factors for construction employees. The Relative Importance Index (RII) was used to rank the motivational factors for different surveyed categories. The study revealed that the most important motivation factors are job security followed by salary and promotion arrangements while taking responsibility is the least motivational factor. The male group of participants chose salary while the female group chose job security. Normal employees chose good relationships with work companions, while managers chose job security as the top-ranked motivational factor. ANOVA test and Spearman correlation analysis were used to analyze the distinguishing difference between different surveyed categories ranking. This analysis concluded that there is no significant correlation between most of the surveyed categories indicating that there is no consensus between study categories regarding motivational factors ranking. This study's result is important to understand motivational factors which can enhance the working environments to improve productivity for the construction industry.

المعاییر الدولیة لإعداد التقاریر المالیة وجودة المحاسبة المالیة فی المؤسسات الکویتیة

المستخلص : هدفت الدراسة إلى البحث في الدور الذي تقوم به المعايير الدولية لإعداد التقارير المالية IFRS في جودة المحاسبة المالية في الشرکات الکويتية، وتمثلت عينة الدراسة في (165) (مدير عام – مدير مالي – رئيس قسم - محاسب) من العاملين في الإدارات المالية بالشرکات الکويتية، واستخدمت الدراسة المنهج الاستقرائي، والمنهج الاستنباطي، واستعانت الدراسة بالاستبانة لجمع بيانات الدراسة وأظهرت نتائج الدراسة أن استخدام المعايير الدولية لإعداد التقارير المالية لها تأثيرات إيجابية على جودة المحاسبة المالية في الشرکات الکويتية. Abstract: The study aimed to investigate the role played by the International Financial Reporting Standards IFRS in the quality of financial accounting in Kuwaiti companies, and the study sample consisted of (165) (general manager - financial director - department head - accountant) of workers in the financial departments of Kuwaiti companies, The study used the inductive approach and the deductive approach. The study used the questionnaire to collect the study data. The results of the study showed that the use of IFRSs has positive effects on the quality of financial accounting in Kuwaiti companies.

The Role of Social Media in the Innovation and Performance of Kuwaiti Enterprises in the Food Sector

This study examined social media’s role in various levels of research, development, and performance within enterprises in Kuwait. The research incorporated four inductive case analyses in various sectors. The case studies epitomize the supply chain of Kuwaiti enterprises, including small and medium-sized enterprises (SMEs). Media richness theory and social exchange effectuation theory were utilized to create an effective theory and a theoretical framework. This study collected data via a questionnaire completed by 100 managers employed by Kuwaiti SMEs specialized in the food sector and interviews with eight managers. Numerical data were analyzed via SPSS software, while textual data were analyzed by applying thematic analysis. The results of this study suggest that Kuwaiti companies should adopt social media platforms and other novel, innovative outlets to publicize their organizations and maximize performance. Social media richness and openness tend to determine the supplier selection process in most Kuwaiti enterprises, leading to positive transactional and social impacts on entrepreneurship.

Development of Agile Project Management Framework in Oil and Gas Companies in Kuwait

The Petroleum industry requires construction and renovation of 'upstream' and 'downstream' facilities. Kuwait Oil Company is dealing with the exploration and manufacturing of crude oil & natural gas. EPC projects perform an essential role in the technology of new physical amenities to keep or decorate production. Project administration has developed incredibly over time due to several strategies to deal with building activities. Schedule and Budget are the two most important concerns required to be optimised all through execution. Therefore, a very excellent & efficient challenge management system is wished and has to be framed to deal with the fundamental capital construction projects. In effect, help the organisation makes have an impact on the country's economy.

The effect of strategic learning for human resources on dynamic capabilities of airlines companies in Kuwait

The aim of this study was to explore the impact of strategic learning on the dynamic capabilities of human resources in airline companies in Kuwait. The study sample consisted of all managers working at different levels in these airline companies. To collect the data, a questionnaire-based survey was used and the model was empirically tested using 110 responses from the airline companies in Kuwait and applying multiple regression tests using SPSS software. It was found that strategic learning had a significant impact on the dynamic capabilities of the human resources workforce in airline companies in Kuwait with regards to the four dimensions studied. Based on the study results, the researchers recommended that managers and decision makers in the airline industry in Kuwait should have the ability through various strategies to seize opportunities from companies that show great importance within the market because of their ability to increase the market share which was in turn reflected by an enhancement of their competitive position.

Family Business and Transaction Exposure

This study provides additional evidence and insight into theories on transaction exposure as it empirically examines the magnitude of transaction exposure in Kuwait, a developing country. Specifically, it investigates factors that might influence Kuwaiti firms’ responses to their transaction exposure and how being a family business or part of a family business group could play a mediating role in this response. Through conducting a questionnaire survey with the largest 147 industrial and commercial Kuwait firms, the results of a multinomial logistic regression indicate that theories on financial hedging seem to be inapplicable in the Kuwaiti case. However, these theories provide only partial explanations for management behavior in response to the transaction exposure of Kuwaiti companies. Findings show that a firm being part of a family business group is significantly correlated with its level of hedging, suggesting that firms that are members of a family group of businesses are expected to hedge at a higher level. This points to other theories, such as institutional theory, as playing greater roles in explaining the transaction exposure behaviors of firms in developing countries, and also suggests that family-controlled businesses are expected to engage in more innovative financial strategies and hedge at a higher level. The research findings imply that Kuwaiti firms need to be more aware of their transaction exposure and pay more attention to the related issues. Training programs in risk-management strategies should be provided to decision makers to help them evaluate the hedging strategies they employ. This study shows how different behaviors toward risk exist between firms that operate in developed and developing countries, including the effect of being part of a family business resulting in firms engaging in more innovative financial strategies when dealing with risk.

Impact of SARS-Con-V2 on the Poultry Industry in Kuwait: A Case Study.

The SARS-Con-V2 crisis influenced all aspects of life in the country including academics, economics, medical, and other fields. Poultry industry, whether locally or globally, is one of the investment fields that has been affected by the current SARS-Con-V2 crisis. As part of this global world, the local poultry companies in Kuwait have been impacted by restricting movements and transportation of the employees in between the company branches, exportation and importation of goods, bank closures, rise in the imported and local vaccination and drug prices, sales and marketing. The current case study paper sheds light on the impact of the current SARS-Con-V2 crisis on the local poultry industry, as well as the challenges and gaps in the local poultry value chain. It also propose solutions to mitigate this impact and to enhance sustainability of poultry products during other future global or local crisis.

E&P Notes (August 2020)

E&P Notes (August 2020)

Have accounting measures lost their usefulness after the 2008 global financial crisis?

Purpose This purpose of this paper is to investigate the value relevance and incremental importance of earnings and book value in the Kuwaiti market to equity holders over time and in the context of the decade after the 2008 global financial crisis. Design/methodology/approach Following reports in the literature, the value relevance of earnings and book values was examined using the price valuation model provided by Ohlson (1995). Observations (2,817) were collected from all firms listed on the Kuwait Stock Exchange from 1994 to 2016. Findings The results suggest that the value relevance of earnings and book values declined over this period, and that the loss of value relevance for earnings data was greater than that for book value. The analysis provides evidence that the decline in value relevance of earnings and book value was driven by book values in the post-GFC period and suggests an exchange of value relevance between earning and book value post GFC. Practical implications The results are useful for regulators, analysts, investors and academics as an assessment of effectiveness of current financial reporting. There is a need for improvement because quality information helps equity holders determine value precisely. Timely financial reporting may mitigate the drop in value relevance of financial statements. Originality/value This is the first study to examine value relevance accounting measures of Kuwaiti companies, in the post-GFC context. It contributes to capital market research through an empirical examination of a frontier capital market.

The Effect of Strategic Learning for Human Resources on Dynamic Capabilities of Airlines Companies in Kuwait

The aim of this study was to explore the impact of strategic learning on the dynamic capabilities of human resources in airline companies in Kuwait. The study sample consisted of all managers working at different levels in these airline companies. To collect the data, a questionnaire-based survey was used and the model was empirically tested using 110 responses from the airline companies in Kuwait and applying multiple regression tests using SPSS software. It was found that strategic learning had a significant impact on the dynamic capabilities of the human resources workforce in airline companies in Kuwait with regards to the four dimensions studied. Based on the study results, the researchers recommended that managers and decision makers in the airline industry in Kuwait should have the ability through various strategies to seize opportunities from companies that show great importance within the market because of their ability to increase the market share which was in turn reflected by an enhancement of their competitive position.

The Effect of Strategic Learning for Human Resources on Dynamic Capabilities of Airlines Companies in Kuwait

The aim of this study was to explore the impact of strategic learning on the dynamic capabilities of human resources in airline companies in Kuwait. The study sample consisted of all managers working at different levels in these airline companies. To collect the data, a questionnaire-based survey was used and the model was empirically tested using 110 responses from the airline companies in Kuwait and applying multiple regression tests using SPSS software. It was found that strategic learning had a significant impact on the dynamic capabilities of the human resources workforce in airline companies in Kuwait with regards to the four dimensions studied. Based on the study results, the researchers recommended that managers and decision makers in the airline industry in Kuwait should have the ability through various strategies to seize opportunities from companies that show great importance within the market because of their ability to increase the market share which was in turn reflected by an enhancement of their competitive position.

CRM and organizational performance

PurposeThe purpose of this paper is to investigate the relationship between customer relationship management (CRM) dimensions (i.e. top management support, customer orientation, training orientation, customer data, customer information-processing and integration) and organizational performance in telecommunication companies in Kuwait.Design/methodology/approachThis is a quantitative study, and the response came from 167 employees of three telecommunication companies. Data collected were subjected to correlation and regression analyses in pursuance of the study’s stated objective.FindingsThe results of this study found that top management support, customer data and customer information processing are positively related to organizational performance, while other variables of customer orientation, training orientation and integration of CRM have no significant influence on organizational performance.Originality/valueThe paper addresses CRM dimensions issues specifically for telecommunication companies in Kuwait.

Predicting financial distress for mobile telecommunication companies listed in Kuwait Stock Exchange using Altman s model

Purpose- With the bankruptcy of many large companies in recent years especially after the global financial crisis in 2008, the attention to bankruptcy prediction models has increased dramatically. The aim of this study is to examine the financial soundness of the companies listed in the mobile telecommunication sector in the Kuwait stock exchange (KSE). Methodology- Many bankruptcy models were developed as an early warning systems for any distress a company might face. This paper uses one of the most common models, Altman Z-score model, to examine the likelihood of bankruptcy and the financial soundness of mobile telecommunication companies listed in Kuwait stock exchange market during the period from 2013 to 2016. Findings- The results showed that out of the three companies operating in Kuwait, only one of them had a healthy financial position while the other two companies are facing financial distress. Conclusion- The study found that mobile telecommunication companies in Kuwait are facing the risk of bankruptcy due to their negative working capital which makes them vulnerable to any unexpected short-term obligations. As a result, these companies should work to reduce the gap between their current assets and current liabilities.

Impact of knowledge management processes on business performance: Evidence from Kuwait

The purpose of this research study is to investigate the relationship between knowledge management (KM) processes and the level of business performance of organizations in Kuwait. The research utilized a survey that was administered to 500 employees of 139 private and government companies in Kuwait. Tests of validity and reliability confirmed the use of the survey instrument whereas factor analysis revealed 4 main factors whose impact on performance was assessed. The research results revealed that all 4 KM processes examined (i.e., knowledge generation and development, codification and storage, transfer and sharing, and use and evaluation) have a positive and significant impact on perceived business performance. Additionally, the research revealed that KM processes have the highest impact on innovation performance. The limitation of this study is mainly related to the limited geographical scope of the research, because the survey covered only companies from Kuwait. The originality of the research comes from geographical area covered. Virtually, no empirical research has been undertaken in area of knowledge management in Kuwait, as an oil‐dependent country.