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The purpose of this study was to explore the relationship between localization (Omanization) practices and financial performance in Oman.

Firms listed in the Muscat Securities Market were surveyed. Data were obtained from 73 firms. Financial performance data (average ratio of market value to book value) were obtained from published records.

Results indicated that localization practices were related to financial performance after controlling for size, type of firm, average price earnings ratio of the industry and Omanization levels.

The measure of localization did not specify the level at which Omanization practices are focused on. This is a limitation of this study, and future research must measure localization practices for different levels in the organization.

From a practical perspective, the results of this study suggest that organizations in the Arabian Gulf can enhance their performance by implementing systematic localization human resource management practices. The authors believe that this study makes a significant preliminary contribution to the understanding of localization practices and financial performance in the Arabian Gulf region.

These results are encouraging for managers who argue for integrating locals into the workforce rather than engaging in localization practices for public relations purposes. Sincere localization efforts develop local human capital.

Study was conducted in the Sultanate of Oman, an Arabian Gulf country. To the authors’ knowledge, this is the first study of localization practices and financial performance in the Arabian Gulf. This study therefore contributes to and extends the growing literature on localization practices in the Arabian Gulf in general and Oman in particular.

The recent appointment of a number of women to leading policy making positions in the Arab Gulf State of Oman marks a significant departure from the traditionally exclusive male dominated decision‐making arena, and ushers an end to an era of exclusive patriarchal dominance in leadership positions. This study aims to shed light on this evolving phase of women's empowerment in Oman, and attempts to capture their traits, experiences and challenges as women leaders in conservative, male dominated work environments.

The study analyzes the views of ten Omani women who achieved extraordinary levels of career success. In depth interviews were conducted using an interview guide purposely designed to solicit responses pertaining to their early socialization patterns; personal traits; work/family role conflict and their vision of the challenges facing working and professional women in Omani society.

Contrary to social perceptions and stereotypes, Omani women in leading positions are highly motivated and ambitious. Their successful transition to elevated positions can be attributed to their early socialization experiences which valued education, supportive parents (particularly the father), and equal treatment with their male siblings. They are challenged by the incongruence of their roles as female leaders relative to the prevailing social values and expectations towards women and their traditional role in society.

The study does not investigate the extent to which such appointments may have transformed gender relations in Oman nor its impact on women's roles in Omani organizations.

Empowering women requires policies and human resource programs that support this goal. This paper has implications for gender policy development as well as diversity and leadership training for women.

Given the dearth of research on this topic, the study contributes to understanding the dynamics of female leadership in this increasingly important world region, and raises awareness among women (and men alike) regarding the unique experiences and challenges of Arab women leaders.

The purpose of this paper is to test the relationship between high‐involvement human resource management practices and organizational performance in the Sultanate of Oman, an Arabian Gulf country.

Companies listed in the Muscat Securities Market in the Sultanate of Oman were surveyed. The final sample consisted of 87 companies. Survey responses were subjected to statistical analysis. Financial measures of organizational performance were also used in the analysis for a subset of the sample for which these data were available.

Results of the statistical analysis indicated that, after controlling for size, type of firm (publicly traded or closely held) and average industry price‐earnings ratio, high involvement human resource management practices were positively related to subjective organizational performance and an objective measure of performance, ratio of market value to book value.

Research limitations include measuring high‐involvement HRM practices and subjective organizational performance from the same source, assuming that HRM practices are uniform across organizational levels and using a composite measure of high‐involvement HRM practices. Future research should address these limitations.

The results of the study suggest that organizations in the Arabian Gulf can enhance their performance by implementing high‐involvement HRM practices in spite of the unique national culture and special features of the labour market in the region.

To the best of one's knowledge, this is the first study of high‐involvement HRM practices and organizational performance in the Arabian Gulf using both subjective and objective measures of organizational performance. Unlike other studies on HRM in Oman, this study was based on data collected from private‐sector organizations.