Proposing a Framework for Explaining Human Resource Strategies in the Success of the Privatization of Iran’s Petrochemical Industry

Document Type : Management & Organization

Authors

1 Master of Science in Industrial Engineering, Industrial Management Organization (Tehran Branch), Tehran, Iran.

2 Assistant Professor, Department of Business Administration, Faculty of Economic and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

10.22080/jem.2026.30908.4024

Abstract

This study investigates how human resource (HR) strategies shape the success of privatization in Iran’s petrochemical industry. Using qualitative thematic analysis, the research draws on semi-structured interviews with managers and experts, analyzed through open, axial, and selective coding to identify salient themes influencing the privatization process. The findings indicate that HR strategies focused on employee training and empowerment, motivation and trust-building, and organizational culture development are pivotal to successful outcomes, while human-related barriers such as employee resistance, job insecurity, and skill–requirement mismatches can undermine performance. The results are consistent with prior work in comparable contexts in Iran and the United Kingdom, reinforcing that attention to human and cultural factors, alongside structural and economic reforms, is essential for effective privatization. Overall, the study underscores the decisive role of HR strategy in privatization and recommends prioritizing human capital development, strengthening organizational culture, and proactively mitigating resistance to change to enhance the success of privatization initiatives in the petrochemical sector.

Keywords

Main Subjects

References

 Akbari, P., Akbari, P., Rostami, R., & Veismoradi, A. (2013). The analysis impact of human resource management and intellectual capital on organizational performance in Physical Education Organization of Iran (Case study: Physical Education General Department of Kermanshah). International Journal of Sport Studies, 3(3), 263–273. Available at SSRN: https://ssrn.com/abstract=2268317
Belkhir, M., & Ben-Nasr, H. (2016). Labor protection and the privatization or partial privatization method. International Review of Economics & Finance, 44, 305–322. https://doi.org/10.1016/j.iref.2016.02.008
Boubakri, N., Cosset, J.-C., & Guedhami, O. (2009). From state to private ownership: Issues from strategic industries. Journal of Banking & Finance, 33(2), 367–379. https://doi.org/10.1016/j.jbankfin.2008.08.012
Boselie, P., & Koene, B. (2010). Private equity and human resource management: “Barbarians at the gate! ” HR’s wake-up call? Human Relations, 63(9), 1297–1319. https://doi.org/10.1177/0018726709349519
Earle, J. S., & Shpak, S. (2019). Impact of privatization on employment and earnings. IZA World of Labor, (93, version 2). https://doi.org/10.15185/izawol.93.v2
Estrin, S., & Pelletier, A. (2018). Privatization in developing countries: What are the lessons of recent experience? The World Bank Research Observer, 33(1), 65–102. https://doi.org/10.1093/wbro/lkx007
Ghasemi, A., Beigilanlouei, S., & Pourmahdian, H. (2016). Human resource development formulation and evaluation in an Iranian petrochemical company using ANP and grey relational analysis. Management Science Letters, 6(7), 461–474.
Goudarzvandchegini, Mehrdad, & Yousefi, Samineh. (2012). Investigating the Role of Privatization on Human Capital Performance in the Iranian Banking Industry (Case Study: Banks in Gilan Province). Quantitative Studies in Management, 3(1), 39-58. SID. https://sid.ir/paper/192001/fa
Hassas-Yeganeh, Y., Shiri, Y., & Mohammadi, N. (2008). Corporate governance, privatization, and its effects: A theoretical-analytical review based on country experiences. Hesabdar, (198).
Jurkiewicz, C. L., & Burr Bradley, D. (2002). Making privatization work: Utilizing a scorecard model of human resource strategy. Public Organization Review, 2, 365–385. https://doi.org/10.1023/A:1020670214630
Kheirandish, M. , Hassanpoor, A. , vakili, Y. and akbari, H. (2024). Explain and Compare the Pattern of Supply, Development and Maintenance of Human Resources in Ssuccessful Privatized Manufacturing Companies. Management Studies in Development and Evolution, 33(114), 115-146. doi: 10.22054/jmsd.2023.70138.4215
Laguna, N. M. (2004). Oil policies and privatization strategies in Mexico: Implications for the petrochemical sector and its production spaces. Energy Policy, 32(18), 2035–2047.
Naeimi F, Varahrami V. Investigating the Effect of Privatization on the Economic Performance of the Iranian Petrochemical Industry (case study: ten selected petrochemical companies). QEER 2023; 19 (79):125-158
URL: http://iiesj.ir/article-1-1595-fa.html
Oyewole, A. T., Okoye, C. C., Ofodile, O. C., Odeyemi, O., Adeoye, O. B., Addy, W. A., & Ololade, Y. J. (2024). Human resource management strategies for safety and risk mitigation in the oil and gas industry: A review. International Journal of Management & Entrepreneurship Research, 6(3), 875. https://doi.org/10.51594/ijmer.v6i3.875
Panahi, M. , Heidarpoor, F. , Esamailzadeh mogry, A. and keyghobadi, A. (2022). Privatization in Iran; New Regional Economic and Financial Challenges with Data Foundation Theory (grounded theory). Journal of economics and regional development, 28(22), 23-56. doi: 10.22067/erd.2022.70873.1053
Rastgar, A. , Dehghan, E. , & Bagheri Garbollagh, H. (2020). Designing and Explanation of Human Resources Agility Model in Project-Based Organizations. Journal of Executive Management, 12(24), 295-320. doi: 10.22080/jem.2021.18758.3195
Ritson, N. H. (2008). Strategy, flexibility and human resource management: A study of the outsourcing of maintenance in UK petrochemicals (Doctoral thesis). University of Central Lancashire.
Sadegh Faridi, Esfandyar Mohamadi , Reza Rostamzadeh, Mahrokh Lotfolahi Haghi, (2024). Designing the privatization model and implementing Article 44 of the Constitution in the National Oil Products Distribution Company with the approach of human resources productivity, Journal of Sustainable Human Resource Management, 6(11), 125-151. magiran.com/p2827040
Seyyed Ali Akbar Afjeh, Hojjat Ghasemloo, (2011). The survey of behavioral impacts over privatization in human sources whit using of brokners survivor syndrome, Journal of Future Studies Management, 22(2), 15-23. magiran.com/p1721236
Seyyedjavadin, S. R. and Zadeh, M. (2009). HR Strategy and Its aligning with organizational strategy and human capabilities. Interdisciplinary Journal of Management Studies, 2(2), 5-29. doi: 10.22059/ijms.2011.23389
Varahrami, V. , Dargahi, H. and Beyranvand, F. (2018). The Impacts of Privatization on Petrochemical Exports (the Case of Polyethylene). Journal of Economics and Modelling, 9(2), 101-124.
Wolf, C. O. H., & Pollitt, M. G. (2008). Privatising national oil companies: Assessing the impact on firm performance. Cambridge Judge Business School Working Paper No. 02/2008. Available at SSRN: https://ssrn.com/abstract=1088327
Wright, P. M., Gardner, T. M., & Moynihan, L. M. (2003). The impact of HR practices on the performance of business units. Personnel Psychology, 59(4), 541–577. https://doi.org/10.1111/j.1748-8583.2003.tb00096.x
Wright, P., McCormick, B., Sherman, W., & McMahan, G. (1999). The role of human resource practices in petro-chemical refinery performance. CAHRS Working Paper Series. https://doi.org/10.1080/095851999340260
Yaghoubi,M. , Seyfi,V. and Sadeghi Shahdani,M. (2021). Basic strategy for privatization in Iran. Economic Strategy, 10(37), 215-250.

Files

History

  • Receive Date: 05 January 2026
  • Revise Date: 25 February 2026
  • Accept Date: 18 May 2026

Share

How to cite

Statistics