Literature review chapter Essay Example | Topics and Well Written Essays - 250 words

Literature review chapter - Essay Example The development of private enterprises have shown growth over the last few decades, this expansion in the private sector is attributed to the benefits that privatization brings along (Dahel, 2001). The contribution of people towards Gross Domestic Product (GDP) generation is maximized through privatization. The margin of innovation becomes broader, and companies may define their policies according to their status.The freedom of decision making has been supportive towards the idea of privatization. Privatization seems to be an appropriate policy for increasing quality and variety in telecommunication industry. In 1992, the Kuwait Investment Authority began 3 phases plan of privatization. The aim of this initiative was to reconstruct the economy, and minimize the dependence on revenue generated by oil. The policy of privatization was devised in such a manner that it could entertain domestic as well as foreign investor. The five different methods that were employed by the Kuwait Investment Authority include Sale of Government Shares, General Tendering, Management Contracts, Lease Arrangement, and Cooperation with the Government. However, privatization is not a compulsion efficient provision of services(Doh, 2000). Heracleous (1999) studied the case of Singapore, and analyzed its public owned telecommunication sector that offers the quality of services according to the world standards. Further, Heracleous (1999) has dichotomized the debate of ownership, and its effects on the performance of an organization. The management team of an organization is authorized by the owners to manage the affairs, therefore, it does not matter who owns the company, as far as the administration of the organization is making the right decisions (Heracleous, 1999). Heracleous (1999) reveals important aspects of the privatization debate in the telecommunications industry. By discussing the unique and