Abstract
Small and Medium-Sized Enterprises (SMEs) have been established by literature to be critical drivers that impact political and economic growth, particularly because of the significant contributions they render to a country’s GDP, socio-cultural development, and employment. This study, which is conducted within the context of the Kingdom of Saudi Arabia (KSA), examines the factors that influence the attitude of SME managers towards business growth. Although extensive literature on SMEs within developed country contexts exists, few studies have been conducted to examine issues relating to SMEs in the Middle Eastern region and, indeed, Saudi Arabia and this study bridges that gap.An interpretive philosophy was used as the philosophy to underpin the research, while a qualitative approach was used as the approach for data collection. Semi-structured interviews were employed as tools in the collection of data, with 25 interviews conducted with SME Managers who were selected using a purposive sampling approach. Analysis was done thematically using NVIVO software. In order to explore issues surrounding how managerial attitudes could shape SME growth in Saudi Arabia, a conceptual framework was developed, which was underpinned by three theories including the theory of reasoned action (TRA), the theory of planned behavior (TPB), and effectuation theory, and this served as a lens to examine the findings obtained by the study. Although the combination of these theories significantly contributed to understanding the various dimensions associated with the attitude of SME managers, it provides a partial solution to the research topic. This is because the emphasis of the TRA and TPB is on attitudes, intentions and perceived behavioural control, which offers insights into how rational decision-making and intent guide growth-related behaviours. The theories however do not put into cognizance the complexity associated with the nature of business environments in KSA, particularly for SMEs, and while effectuation theory addresses this in contrast through highlighting adaptive decision making in scenarios of uncertainty, offering more dynamic insights into entrepreneurship, the cultural, economic and social factors specific to KSA are not fully captured, limiting its applicability. Critically, although the focus of TRA and TPB are on control and predictability, effectuation theory is focused on flexibility and resource-based decision-making which might not always be in alignment with the structured decision-making framework which the two other theories adopt. In essence, although these theories are useful in framing the study, their collective adoption requires further contextual refinement to provide a better account for unique opportunities and challenges which SME managers in KSA face.
Several theoretical contributions are made by the study. Firstly, the thesis integrates TRA, TPB and effectuation theory in offering a detailed understanding between perceived behavioural control, subjective norms intentions and attitudes within the context of SMEs in KSA. This theoretical approach provides a foundation for future researchers in leveraging on. Additionally, the theoretical contributions identifies the importance of customer feedback and perceived quality of products and services in shaping the growth attitudes of SME managers, linking these external influences to subjective norms within TRA and TPB. Additionally, the thesis identifies the importance of partnerships and licenses, demonstrating how network and regulatory compliance facilitate positive attitudes towards growth opportunities for SMEs in KSA. Additionally, the study provides insight on how the impact of market conditions including unfavourable and favourable environments directly affects manager’s attitudes to growth, and how cultural factors like Wasta (personal networks) either facilitates or hinders the ability of SME managers in leveraging growth opportunities. Furthermore, SME manager’s competency including their risk-taking capabilities, knowledge of compliance and competencies are also found to play an important role in shaping growth attitudes. Finally, the thesis identifies that government policies including Saudization as a double-edged sword in either hindering or facilitating growth opportunities for SME managers.
The findings obtained provide a holistic view of SME growth in KSA by integrating customer feedback, market conditions, culture, partnerships and government policies as crucial factors. This multi-dimensional perspective offers invaluable insights for researchers, policymakers and industry practitioners in KSA for understanding and supporting SME development in the region.
| Date of Award | 29 Jan 2025 |
|---|---|
| Original language | English |
| Awarding Institution |
|
| Supervisor | Yuksel Ekinci (Supervisor) & Sianne Marie Gordon-Wilson (Supervisor) |