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Investigation the impact of Saudi vision 2030 on strategic investments of SMEs in Saudi Arabia Thesis Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION BY Mona Under Supervision Supervisors Name COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES SAUDI ELECTRONIC UNIVERSITY 2021-2022 ii Declaration Certificate The work entitled, ‘‘Investigation the impact of Saudi vision 2030 on strategic investments of SMEs in Saudi Arabia”, represents the outcomes of the research I conducted in the College of Administrative and Financial Sciences, Department of Business Administration, Saudi Electronic University. This research has not been previously submitted, either partially or in its entirety, for the purpose of obtaining any degree at SEU or any other university. Date: – ______________________ Place: – ______________________ (Signature) (Full Name of the Candidate) iii Acknowledgement It is my pleasure to express my deepest gratitude to my instructor for the guidance and the encouraging words throughout the creation of this article. With their knowledge and assistance, my thinking and writing style has been improved. In this way, I would like to acknowledge my friends and their encouragement, their constructive criticism, and their camaraderie which was a constant source of my inspiration and motivation. The different ways in which they think and their constructive conversations have helped me to be comprehensive and to improve the content of this article. It was really my teacher and the friends who helped me to write this article and hence it would not have happened without their support. I can not thank them enough for their help and companionship. iv List of Abbreviations ANOVA Analysis of Variance GCC Gulf Cooperation Council GDP Gross Domestic Product KSA Kingdom of Saudi Arabia SME Small and Medium Enterprises SPSS Statistical Package for Social Sciences IT Information Technology v List of Tables Table 1 ………………………………………………………………………………………………………………………… 12 Table 2 …………………………………………………………………………………………………………………………. 14 Table 3 …………………………………………………………………………………………………………………………. 23 Table 4 ………………………………………………………………………………………………………………………… 27 Table 5 ………………………………………………………………………………………………………………………… 34 Table 6 ………………………………………………………………………………………………………………………… 35 Table 7 ………………………………………………………………………………………………………………………… 38 vi Table of Contents Declaration Certificate …………………………………………………………………………………………………………….. ii Acknowledgement …………………………………………………………………………………………………………………. iii List of Abbreviations ………………………………………………………………………………………………………………. iv List of Tables ………………………………………………………………………………………………………………………….. v Abstract………………………………………………………………………………………………………………………………….ix INTRODUCTION………………………………………………………………………………………………………………………. 1 1.1. Background ……………………………………………………………………………………………………………………… 1 1.2. General Introduction ………………………………………………………………………………………………………… 2 1.3. Research Questions ………………………………………………………………………………………………………….. 3 1.4. Research Objectives………………………………………………………………………………………………………….. 3 1.5. Significance of the Study……………………………………………………………………………………………………. 4 1.5.1. Managerial Relevance ……………………………………………………………………………………………………. 4 1.5.2. Scientific Relevance ……………………………………………………………………………………………………….. 4 1.6 Research Rationale ……………………………………………………………………………………………………………. 4 CHAPTER 2 …………………………………………………………………………………………………………………………….. 8 REVIEW OF LITERATURE ………………………………………………………………………………………………………….. 8 2.1. The Strategic Importance of SMEs in Vision 2030 …………………………………………………………………. 8 2.2. Vision 2030’s Framework for Institutional and Regulatory Reforms ……………………………………….. 8 2.3. Sector-specific Opportunities and Challenges ………………………………………………………………………. 9 2.4. Saudi Arabia’s Vision 2030 Investment in Non-Oil Industries. ……………………………………………… 10 2.5. Saudi Arabia’s ‘Vision 2030’Societal Transformation …………………………………………………………… 10 2.6. SMEs are Saudi Arabia’s driving force for economic growth …………………………………………………. 11 2.7. Summary of Chapter ……………………………………………………………………………………………………….. 12 2.8. Hypothesis …………………………………………………………………………………………………………………….. 14 THE METHODOLOGY……………………………………………………………………………………………………………… 17 3.1. Research Approach …………………………………………………………………………………………………………. 17 3.2. Research Period ……………………………………………………………………………………………………………… 17 3.3. Data Collection Methods …………………………………………………………………………………………………. 17 3.4. Sampling ……………………………………………………………………………………………………………………….. 17 3.5. Sample Size and Selection ……………………………………………………………………………………………….. 18 3.6. Challenges Faced ……………………………………………………………………………………………………………. 18 vii 3.7. Data Analysis ………………………………………………………………………………………………………………….. 19 3.8. Ethical Considerations …………………………………………………………………………………………………….. 19 3.9. Limitations …………………………………………………………………………………………………………………….. 20 ANALYSIS AND RESULTS…………………………………………………………………………………………………………. 22 4.1. Introduction …………………………………………………………………………………………………………………… 22 4.2.Analysis with the Perspective of Literature Review ……………………………………………………………… 22 4.3. Demographic Characteristic Analysis…………………………………………………………………………………. 23 4.4. Analysis of Hypotheses Questions …………………………………………………………………………………….. 27 4.5. Descriptive Statistics ……………………………………………………………………………………………………….. 34 4.5. Correlation Analysis ………………………………………………………………………………………………………… 35 4.6. Interpretation of Analysis ………………………………………………………………………………………………… 37 DISCUSSION AND CONCLUSION ……………………………………………………………………………………………… 41 5.1. Introduction …………………………………………………………………………………………………………………… 41 5.2. Discussion of Findings ……………………………………………………………………………………………………… 41 5.3. Conclusion……………………………………………………………………………………………………………………… 42 5.4. Managerial Relevance……………………………………………………………………………………………………… 43 5.5. Scientific Implications ……………………………………………………………………………………………………… 43 5.6. Limitations …………………………………………………………………………………………………………………….. 45 5.6.1. Cross-Sectional Nature of the Study ………………………………………………………………………… 45 5.6.2. Generalizability …………………………………………………………………………………………………….. 46 5.6.3. Data Availability and Quality ………………………………………………………………………………….. 46 5.7. Scope for Future Research ……………………………………………………………………………………………….. 46 6. APPENDICES ……………………………………………………………………………………………………………………… 52 APPENDIX-I……………………………………………………………………………………………………………………. 52 APPENDIX-II………………………………………………………………………………………………………………………….. 60 viii ix Abstract This study explores the intricate relationship between organizational culture and project management practices. Through a mixed-methods approach involving a comprehensive literature review, semi-structured interviews and a survey questionnaire with project managers and organizational leaders, the research examines how organizational culture influences collaboration, decision-making, and methodology implementation in project management scenarios. Findings reveal that cultural components such as shared principles, convictions, and communication norms significantly impact project outcomes, highlighting the need for adaptive strategies to align decision-making practices with organizational culture effectively. Moreover, the study identifies challenges and opportunities for applying distinct project management approaches within diverse cultural contexts, emphasizing the importance of cultural awareness in project management decision-making. ‫‪x‬‬ ‫خالصة‬ ‫تستكشف هذه الدراسة العالقة المعقدة بين الثقافة التنظيمية وممارسات إدارة المشاريع‪ .‬من خالل نهج متعدد األساليب‬ ‫يتضمن مراجعة شاملة لألدبيات‪ ،‬ومقابالت شبه منظمة واستبيان استقصائي مع مديري المشاريع والقادة التنظيميين‪ ،‬يدرس‬ ‫البحث كيفية تأثير الثقافة التنظيمية على التعاون وصنع القرار وتنفيذ المنهجية في سيناريوهات إدارة المشاريع‪ .‬تكشف‬ ‫النتائج أن المكونات الثقافية مثل المبادئ والقناعات المشتركة ومعايير االتصال تؤثر بشكل كبير على نتائج المشروع‪ ،‬مما‬ ‫يسلط الضوء على الحاجة إلى استراتيجيات تكيفية لمواءمة ممارسات صنع القرار مع الثقافة التنظيمية بشكل فعال‪ .‬عالوة‬ ‫على ذلك‪ ،‬تحدد الدراسة التحديات والفرص لتطبيق مناهج متميزة إلدارة المشاريع ضمن سياقات ثقافية متنوعة‪ ،‬مع التأكيد‬ ‫على أهمية الوعي الثقافي في اتخاذ القرارات المتعلقة بإدارة المشاريع‬ xi xii CHAPTER 1 Page |1 INTRODUCTION 1.1. Background With the launch of Vision 2030, the Saudi Arabian government has set out on a transformational journey with the lofty goals of decreasing the country’s reliance on oil, increasing economic diversification, and bolstering public service sectors like medical care, schooling, buildings, recreational activities and travelling (Vision 2030 Overview, n.d.). This vision represents a pivotal shift in the economic landscape of Saudi Arabia, with an emphasis on fostering a vibrant society, a thriving economy, and an ambitious nation (Alsayyad & Nawar, 2017). Small and Medium-sized Enterprises (SMEs) are crucial in this transformative agenda. As a key driver of economic growth, SMEs contribute significantly to job creation and economic diversification. The Vision 2030 and associated policies provide a fertile ground for SMEs to flourish by creating a more supportive business environment and increasing the opportunities for investment in various sectors (Derendinger & Frank, 2020). The strategic investments of SMEs in Saudi Arabia are significantly influenced by the country’s macroeconomic policies and institutional reforms. Alshebami and Seraj (2022) highlighted the impact of institutional factors on small business creation, underlining the importance of a supportive regulatory and financial environment for entrepreneurship. Similarly, the International Monetary Fund’s report (2023) stressed the critical role of economic reforms and policy measures in enhancing the business climate for SMEs. Furthermore, the diversification of the Saudi economy has opened new avenues for SMEs in sectors like renewable energy. The research by Almulhim and Al Yousif (2021) on renewable energy investments in Saudi Arabia provided insights into the evolving landscape of strategic investments. This sector’s growth is indicative of the broader diversification efforts under Vision 2030, offering SMEs new opportunities for innovation and investment. Vision 2030’s impact is not limited to the economic sphere; it also encompasses social and health sectors, with implications for the overall business environment. Rahman and Qattan (2021), as well as Rahman and Al-Borie (2020), have explored the Vision’s role in revitalizing the healthcare system, demonstrating the interconnectedness of various sectors and the holistic approach of the Vision. Page |2 In this context, the current study seeks to investigate the impact of Saudi Vision 2030 on the strategic investments of SMEs in Saudi Arabia. This cross-sectional study aims to explore how Vision 2030’s broad spectrum of reforms and initiatives is shaping the investment landscape for SMEs, particularly in terms of opportunities, challenges, and future prospects. 1.2. General Introduction Through Vision 2030, the Kingdom of Saudi Arabia introduces a unique and advanced economic and social development framework that seeks to diversify its economy beyond dependency on oil, to promote sustainable growth in many sectors, and to create a great nation that is active, prosperous, and has great expectations. As per the overview of 2030 Vision (n.d.) and KSA, the vision 2030(2016) introduced this strategic framework in 2016 and it highlighted that the role of small and medium-sized enterprises (SMEs) as engines economic growth, innovation, and jobs creation, is very significant. It inter alia creates high goals that aim at the amount of SME’s contribution to the Gross Domestic Product (GDP) and helps integrate these companies into the global market. Major Custodial institutions and regulations reforming are part of this comprehensive approach in Vision 2030. These changes aim at promoting a business friendly environment for SMEs, providing an entrepreneurial incentive, and offering trading and financial markets facilities access channels. It shows that it’s a larger drive towards the sustainability and the innovation trends (McKinsey Global Institute, 2015; Almulhim& Al Yousif, 2021). By far, the scope of the potential investors includes the renewable energy, digitization, and tourism sectors, which are regions with prime export opportunities for SMEs to hone their capacities and eventually grow. The plan that Vision 2030 has put in place for small and medium scale enterprises (SMEs) is not an undulated road but has many barriers. SMEs confront many problems both in identifying the emerging trends of digitization and also at the same time capitalizing on the opportunities given by this vision. As was mentioned the impediments may be associated with a new regulatory environment, sufficient financial resources to invest, as well as, keeping up with rapid technological changes. Moreover, the impact of reforms in social and health sector might be even greater via an indirect impact by making the general business condition more favorable for SMEs. It is therefore because vision 2030 focus is not just on economic issues, it goes beyond that. Implementing the integration of Saudi small and medium enterprises (SMEs) to the global market is only possible when the following capabilities are harnessed: cyber security governance Page |3 and the digital transformation (IMF, 2023; Rawindaran et. Al, 2023). This shows how infrastructure development and natural resource management may not only be functional but also beneficial. Research and empirical studies on the part of the government officials, will enable them to understand how SMEs and Vision 2030 are being connected continuously. It will confirm that the government initiatives to diversify the SMEs-based economy will be practicable, realistic, making full use of the capabilities faced with challenges within SMEs. 1.3. 1. Research Questions How has Saudi Vision 2030 influenced the strategic investment decisions of SMEs within the Kingdom? 2. What are the key institutional and regulatory changes introduced under Vision 2030, and how have these affected SME operations and growth? 3. To what extent do sector-specific opportunities and challenges under Vision 2030 impact SMEs in renewable energy, digital technology, and healthcare? 4. How does Vision 2030 facilitate the global integration of Saudi SMEs, and what are the implications for their competitiveness on the international stage? 5. What are the perceived challenges and barriers faced by SMEs in adapting to the economic and regulatory reforms under Vision 2030? 1.4. 1. Research Objectives To analyze the economic diversification efforts under Vision 2030 and assess their impact on SMEs across various sectors. 2. To evaluate the impact of institutional and regulatory reforms on the operational efficiency and strategic investment decisions of SMEs. 3. To examine the sector-specific opportunities and challenges faced by SMEs post-Vision 2030 implementation, with a focus on emerging industries. 4. To assess the effectiveness of Vision 2030 in enhancing the global competitiveness of Saudi SMEs, including their integration into global markets. 5. To identify and recommend best practices and strategies for SMEs to navigate the changes and capitalize on the opportunities presented by Vision 2030. Page |4 1.5. Significance of the Study 1.5.1. Managerial Relevance The study’s findings for the SME owners, executives, and managers are especially significant, as it offers valuable directions on how to tailor their operations to the changing business landscape in the run-up to the Vision 2030. When the company leaders are skilled at assessment of newly required strategic investment or alteration to the competitive positioning of their company they will be able to better situate their businesses for current and future growth and competitiveness. Institutional and regulatory reforms, new markets, and their presence in the global market will be the bases for projecting future expectations using research findings data which can be visualized as well. The study will also shed light on some of the problems of the SMEs that will form the basis for developing the policies which would support efficient solutions together with appropriate systems. 1.5.2. Scientific Relevance The aim of this work is then to contribute to the growing literature in the field of public policy, with an emphasis on the efforts of the governments at various level on the development of small and medium sized companies (SMEs) and strategic investments. It is going to cover an input of the already existing research by emphasizing the Venn diagram between the state economic diversification strategies and the policies related to the growth of small and medium-sized enterprises (SME). Furthermore, the research is a response to expanding the debate on directed transformative economic structure and its result for small- and medium-sized businesses with Vision 2030 by delving into the wide range of effects the vision had across numerous industries. In addition, the research carried out provides the foundation for similar studies in the future, while it can also be used as reference for comparing with the development of Vision 2030 in other countries from within the Gulf Cooperation Council (GCC). 1.6 Research Rationale The goal of this study is to analyze the effects that the Saudi Vision 2030 has on strategic investments in Small and Medium-sized Enterprises (SMEs) in Saudi Arabia. With the transformation of the economy, the knowledge of how SMEs are adaptive to the initiatives of Page |5 Vision 2030 is vital to inform policies and support the development of SMEs. Through the combination of qualitative and quantitative research approaches, this study aims to provide integral information on the difficulties and prospects of SMEs in line with the goals of Vision 2030. Ultimately the research will enhance the comprehension of dynamics that shape the behavior of SMEs in the process of economic transformation in Saudi Arabia pursuing the target of sustainable development. Page |6 CHAPTER 2 Page |7 Page |8 CHAPTER 2 REVIEW OF LITERATURE 2.1. The Strategic Importance of SMEs in Vision 2030 The Vision 2030 program of the Saudi Government is aimed at cementing the change of the economy by ending the dependency on oil and transforming the reserved resources into other industries. SMEs will remain the great players as we form this journey into the transition. A blueprint that focuses on growing sector contribution to GDP and setting up the environment that is friendly to the entrepreneurship activities is given by the Vision 2030 report in Saudi Arabia in 2016. The SMEs are outlined in the Vision’s section to play the role of the main economic growth, innovation, and job creators drivers. Such measures do not contradict but rather support the findings of the McKinsey Global Institute (2015) which underscores the latent potential for diversified economic models beyond oil. Smaller and medium-sized enterprises (SMEs) might be big players in mining, logistics, tourism-ready areas bringing new life to Kuwait’s economy and its plans to diversify. It is, indeed, vital for small and medium-sized firms to operate in an atmosphere that does not only facilitate but also promotes the growth of further developments to them. The initiatives that were planned as a part of Vision 2030 – including improved access to finance, reformed regulations, and enhanced market access – are all focused on the support of the small and medium-sized enterprises (SMEs) (Alshebami& Seraj, 2022). These initiatives demonstrate a recognition that a legal and financial framework that is supportive is crucial for supporting entrepreneurship and enabling small enterprises to overcome traditional barriers to growth: this is the reason why the projects involve an aspect of the understanding of the “humanization” process. While SMEs entering a subjected economy take on risks and opportunities in equal measure, polycentric economy gives more chances than challenges, and SMEs are supposed to be daring in such a market. Such conversion will ask them to, in a way, go into new markets, work in non-traditional regulative schemes, and operate via modern technologies. 2.2. Vision 2030’s Framework for Institutional and Regulatory Reforms The strategic objectives of Vision 2030 aimed at growth of the business environment that is more flexible and idea-friendly as well as favorable for the investors is the ultimate demonstration of Page |9 the ESAMV organization total commitment to improving the institutional and regulatory reforms. According to Alshebami and Seraj (2022), there is an attempt to are here undertake reforms to focus on streamlining corporate processes, improving transparency, and encourage efficiency. Conversely, they will eliminate many of the prevailing bureaucratic constraints that have previously stood in the way of growth of SMEs in the Kingdom. This Presidential revamp of legislature will not only testify of the government’s friendliness to foreign investors but will also enable the local SMEs to grow their operations and enter new markets. With that being said, the execution of these reforms has its own unique set of difficulties. Alshebami & Seraj (2022) state that SMEs (Small and medium-sized enterprises) are required to adjust to new regulatory standards, which may necessitate considerable modifications to their operational procedures. In addition, although the reforms intend to enhance access to finance, which is a significant barrier to the expansion of SMEs (small and medium-sized enterprises) the extent to which these policies are successful in reaching the most vulnerable SMEs is still a topic of continuing research. The International Monetary Fund (2023) emphasizes the significance of these reforms in terms of improving the operating environment for businesses as a whole, but it also emphasizes the necessity of continuing efforts to guarantee that financial support mechanisms successfully satisfy the requirements of small and medium-sized enterprises (SMEs) in a variety of industries. 2.3. Sector-specific Opportunities and Challenges Through Vision 2030, by diversifying the income streams to the economy, the SMEs can be revived, especially in industries such as tourism, digital technology, and renewable energy. Author Almulhim and Al Yousif (2021) introduced an analytic report on investments in renewable which indicate that there are many new opportunities for companies whose size ranges from medium to small (SMEs) which are prepared to innovate to adapt to the green goals for the country. This shift towards the forwarded renewable energy sector is merely a small part of the larger diversification strategy, which enables national businesses to create an innovation niche and be ahead in fast-growing industries as per the 2030 vision. Competition usually rather well developed in those new markets will be one of the truculent things we might have to deal with. Many and medium-sized companies (SMEs) have to manage the complex environment where technical innovations, rules and regulations, and market P a g e | 10 behaviors meet. As a result of Rawindaran et al. (2023) stating that digital transformation and cybersecurity are emphatic, SMEs should accept the new technologies and protect their digital operations from current or future dangers. On the one hand, it opens great frontiers for new technologies and business markets; on the other hand, it requires the advanced IT proficiency and security protection systems to be in place 2.4. Saudi Arabia’s Vision 2030 Investment in Non-Oil Industries. Saudi Vision 2030 is a significant project to transform the economy of Saudi Arabia by reducing the dependency of the country on petroleum and the increasing non-oil industries. (Alam et al 2023) shows what supporting measures Saudi Arabia is doing Vision 2030 to attract the investors to the non-oil industry growth. Material and Methods:The target group of employees of non-oil industries of Saudi Arabia was randomly picked to 225 participants. Data for the survey was duly collected, and the data was analyzed using SPSS software. Findings:The findings are indicative of the fact that all p values were 0.000 < 0.05 and this contributes to the support of alternate hypotheses. Therefore, it can easily be determined from the analysis that a more robust relationship is present between Vision 2030 with incentivised investment, economic stability, and financial accommodation.The advantages of reform programs have been effective in non-oil industries of Saudi Arabia to increase production standards and obtain more customer engagement.Conclusion: The aim of this research is to present the clear Vision 2030 in Saudi Arabia’s strategic plan, that is aims at improving the economy of non-oil industry sectors. Hence policy shift for stability can be a way to keep the growth of different sectors and assist financial assets to further improve. 2.5. Saudi Arabia’s ‘Vision 2030’Societal Transformation In these years, Saudi Arabia was disclosed to a situation in which that social-economic model they had followed was in the brink of disappearing crisis. Adoption of the Vision 2030, the country’s leaders could take either the proactive approach by leading Saudi Arabia through an economic and social transformation or the reactive and follow the development of challenges as they arise.Hence, the country changed its direction through Vision 2030. Consequently, a bottom-up national transformation program of the magnitude of Vision 2030 has never been carried out and thus has its own challenges.. (Sharma A 2022) given the fact that Saudi state has been the sole economic power cutting undiversified until recently, it is not surprising that the big P a g e | 11 shift it experiences is accompanied with challenges. Contrasting to western models which produce a surplus and tax citizens public payments, the Saudi model pays for political jaali by distributing free money to the citizens in the forms of subsidies, jobs, infrastructure and public services. Specifying the public spending reform and introducing the market forces competition model as well, the Vision 2030 would have the reversed economic paradigm. Cultural influence can be strong, also in the past and Vision 2030 has be bringing culture changes overnight. Establishments like Sharia courts, the department of education and the Committee for Promoting Decency and Prohibiting Vice are the power in every individuals’ life. Recent amendments, legal reforms like court murders take place; this powerful group is being eroded. Conserving their values, policymakers rekindle them and paste them on one after the other. At a very high speed cultural change lies behind these quick changes that could provoke an uprising and conspiracy that could come from the quarters that feel left out. Visions could not be fulfilled if they are not managed appropriately, which could lead to pronounced risks of the development plan’s failure. 2.6. SMEs are Saudi Arabia’s driving force for economic growth The rise of small and medium-sized enterprises (SMEs) in Saudi Arabia aligns with Vision 2030’s aim to diversify the economy away from oil dependence. Despite global disruptions, SMEs in the Kingdom have thrived, aided by government support and initiatives like Monsha’at, which offers platforms and financial aid. Regulatory reforms have eased business setup, with Riyadh and Makkah leading in startup attractiveness. Notably, female entrepreneurship is on the rise, supported by reforms and programs. Recent milestones include the approval of a new company law and the establishment of the SME Bank. Major players like Saudi Aramco and the Saudi Export-Import Bank are also bolstering SMEs through funding and support programs. As the country embraces digital transformation, SMEs must adapt technologically to compete globally. Overall, SMEs are poised to play a crucial role in Saudi Arabia’s economic evolution in line with Vision 2030 objectives. P a g e | 12 2.7. Summary of Chapter The literature showed, prominently, diverse influences that the Saudi Vision 2030 had on SMEs, from strategic policy which underlined their role in the economic diversification to the hurdles and chances given by the institutional reforms and industrial progress which were consistent with the previous structure of industries. Success of SME sector will be a significant factor which suggests Saudi Arabia induces its efforts to build a stable, diversified and sustainable economy at large scale. A long-term study into this matter, primarily including empirical studies involving the real-life cases of small and medium-sized enterprises (SMEs) and their responses towards the new economic order in the Kingdom of Saudi Arabia, will be the starting point of fine-tuning of current policies and the development of additional support schemes in the interest of survival and sustainable further development of the SME sector in the new post-oil economic. Table 1 Summary Table Structure for Literature Review on the Impact of Saudi Vision 2030 on SMEs Source Key Findings Explores renewable energy Almulhim & Al investments in Saudi, Yousif suggesting a (2021) growing sector for SMEs. Alsayyad& Nawar (2017) Highlights the social dimensions of Vision 2030, emphasizing SMEs’ role in a diversified Sector Methodology Focus Implications for SMEs Gaps & Future Research Directions Hybrid framework combining Leontief and Renewable Fuzzy Group Energy Decision Support Models. SMEs have new opportunities in the renewable energy sector, necessitating strategic investments and innovations. Calls for more empirical research on SME participation in renewable energy projects. SMEs are central to achieving a more inclusive economy under Vision 2030, with implications for Suggests a deeper examination of the social impacts of SME growth. Theoretical analysis based on General Vision 2030 documents. P a g e | 13 economy. Investigates the impact of institutional reforms on small Alshebami business & Seraj creation, (2022) highlighting the importance of a supportive regulatory framework. job creation and social welfare. Regulatory reforms under Vision 2030 are positively impacting SME creation and growth. Identifies a need for longitudinal studies to track the long-term effects of these reforms. General Vision 2030’s reforms are crucial for improving SMEs’ operational efficiency and global competitivenes s. Points to the need for studies on the effectiveness of specific policy measures on SME internationalizatio n. Provides an analysis of Saudi Arabia’s potential Economic beyond oil, forecasting highlighting and analysis. opportunities in various sectors crucial for SMEs. Mining, Logistics, Tourism Identifies sectors with high growth potential for SMEs, driven by Vision 2030’s diversification efforts. Recommends sector-specific research to identify barriers and facilitators for SME engagement. Rawindaran Examines the Comparative et al. (2023) importance of study cybersecurity between Digital Technolog Highlights Suggests further cybersecurity research on SMEs’ as a crucial cybersecurity Survey of Saudi General entrepreneur s. Discusses the significance of economic reforms in Internationa enhancing the l Monetary business Economic Fund climate for analysis. (2023) SMEs, emphasizing global economic integration. McKinsey Global Institute (2015) P a g e | 14 governance Saudi Arabia y for SMEs in and the UK. the context of digital transformatio n under Vision 2030. area for SMEs readiness and its to address in impact on digital adopting digital adoption. technologies. 2.8. Hypothesis Table 2 Hypothesis Description Supported References H1 Economic diversification efforts under Saudi Vision 2030 have a positive impact on the growth and strategic investment decisions of SMEs in Saudi Arabia. McKinsey Global Institute (2015) discusses the potential beyond oil for Saudi Arabia, emphasizing diversification and its implications for SMEs. H2 Alshebami& Seraj (2022) explore the Institutional and regulatory reforms introduced impact of institutional changes on small as part of Vision 2030 positively affect the business creation, highlighting the operational efficiency and investment importance of a supportive regulatory capabilities of SMEs. framework. H3 SMEs operating in sectors prioritized by Vision 2030, such as renewable energy and digital technology, experience greater growth and investment opportunities than SMEs in other sectors. H4 The International Monetary Fund (2023) The global integration initiatives of Vision discusses the significance of global 2030 significantly enhance the international economic integration for Saudi SMEs, competitiveness and market reach of Saudi suggesting an enhancement in their SMEs. market reach. H5 SMEs that align their business strategies with the objectives of Vision 2030 report higher levels of success and sustainability compared to those that do not. Almulhim& Al Yousif (2021) provide insights into the renewable energy sector’s growth, indicating new investment landscapes for SMEs. KSA, Vision 2030 (2016) outlines the vision’s objectives, implying that SMEs aligned with these goals may achieve higher success and sustainability. P a g e | 15 P a g e | 16 CHAPTER 3 P a g e | 17 THE METHODOLOGY 3.1. Research Approach Research Design This study utilises a research approach that combines both qualitative and quantitative methods. By combining these approaches, the research aims to present a holistic understanding of the impact of Saudi Vision 2030 on strategic investments within SMEs. Through quantitative analysis, the study explores the effects of institutional and regulatory reforms, while qualitative methods delve into sector-specific opportunities and challenges. Moreover, it examines the prospects of global market integration for SMEs operating within the Saudi Arabian context. This comprehensive approach enables a nuanced exploration of the multifaceted dynamics shaping SME strategies in response to Vision 2030 initiatives. 3.2. Research Period The research was conducted over a period of (99 days), spanning from (21st January) to (30th April). This time frame was chosen to allow for a comprehensive examination of the impact of Saudi Vision 2030 on strategic investments within SMEs, encompassing both the preimplementation and post-implementation phases of Vision 2030 initiatives. 3.3. Data Collection Methods Quantitative Data: A structured questionnaire is developed and distributed to a targeted sample of SME owners and executives. The questionnaire includes closed-ended questions, for statistical analysis, and Likert-scale items to gauge perceptions of Vision 2030’s impact on various aspects of their businesses. Qualitative Data: Conducting comprehensive interviews will be done with a specific group of small and medium-sized enterprise (SME) owners, government officials, and industry experts. The purpose of these interviews is to collect comprehensive information about the experiences, difficulties, and approaches of small and medium-sized enterprises (SMEs) as they navigate the transformations resulting from Vision 2030. 3.4. Sampling Quantitative Sampling: The study will employ stratified random sampling to ensure representation across different sectors identified as pivotal under Vision 2030, such as renewable P a g e | 18 energy, digital technology, and tourism. Approximately 500 SMEs across these sectors will be targeted. Qualitative Sampling: People with substantial knowledge or insight into SME growth and Vision 2030 are targeted for interviews through a purposeful sampling process. Around 30 participants will be selected for this phase. 3.5. Sample Size and Selection Quantitative Sampling: For selecting SMEs across various sectors targeted by Vision 2030, we employed stratified random sampling. This technique makes sure that our sampling procedure follows a proportionate representation. Through a process of selecting participant SMEs, about 500 SMEs were involved as the quantitative phase of the study carries out its activities. This 1 simple size was by ethical considerations of significance in factor strength and that each sector make a representative size. Qualitative Sampling: The number of individuals who had knowledge about SME expansion or the Vision 2030 was purposively sampled, where people who were given this knowledge distinguished without bias. The interview sample included 30 participants who represent SME owners, government officials, and industry experts that were used for getting rich data that shed light on the experiences and views of those who are directly or indirectly involved in this sector. 3.6. Challenges Faced During the research process, several challenges were encountered, which necessitated careful consideration and mitigation strategies:During the research process, several challenges were encountered, which necessitated careful consideration and mitigation strategies. Sampling Bias: Acts to equalize random and deliberate sampling techniques, nevertheless, the bias influence is still in the predestination of the sample which has been built. In order to do this, measures like stratification & fair sample selection criteria were imposed by the researchers in order to create sample which would be balanced and without any biases. Data Collection Logistics: In this regard, logistics-oriented problems, including arrangement of visit interviews with busy SME owners, coordination of questionnaire survey participation, were actual barriers during our research. Flexible scheduling options and the dawn of transparent P a g e | 19 channels of communication were created to provide a facilitators role in the data collection of the endeavor. Ethical Considerations: Compliance functioning ethic through relaxation of the research process required the careful addressing to the detail of each step and being ready for being exposed to the participant consent and data handling procedures. Respect for ethics among all parties was unquestionably the most critical or valuable aspect of the research as well as it entailed getting informed consent from the participants and maintaining confidentiality of their information. Dynamic Policy Landscape: One of the core features of economic policy through Vision 2030 was to bring about changes in the business environment, thus creating challenges that encompassed adaptation to new regulatory frameworks and understanding changes in their effects to SMEs. To meet this challenge, the research team continuously evaluated the control policies and regularly updated the research protocols so the results of the studies remained relevant and accurate. 3.7. Data Analysis Quantitative Data Analysis: A programme like SPSS will be used to do the analysis of statistical data. Descriptive statistics will summarize the data, while inferential statistics, including T-tests, ANOVA, and regression analysis, will be used to test the hypotheses. Qualitative Data Analysis: Thematic analysis will be applied to interview transcripts to identify common themes and patterns related to the impact of Vision 2030 on SMEs. NVivo software may be used to aid in organizing and analyzing qualitative data. 3.8. Ethical Considerations Ethical considerations were rigorously observed throughout the course of this research endeavor. Prior to conducting interviews, consent to participate in the study was acquired from everyone who took part, ensuring that they had a complete understanding of the study’s objectives, their voluntary involvement, and the privacy of their responses. Additionally, ethical guidelines were strictly adhered to during the design and distribution of the questionnaire, with measures implemented to safeguard participant anonymity and privacy. All data collected from interviews P a g e | 20 and questionnaires were treated with utmost confidentiality, and identities were anonymized during analysis to uphold participant confidentiality and integrity. Furthermore, in the literature review process, proper citation and acknowledgment of existing scholarly works were prioritized to ensure academic integrity and avoid plagiarism. 3.9. Limitations Acknowledging several limitations, the study remains cognizant of potential challenges. Variations in questionnaire response rates may impact sample representativeness, while the subjective nature of qualitative data introduces potential biases. Additionally, the dynamic landscape of economic policies under Vision 2030 poses uncertainties that could influence SME strategies mid-study. Despite efforts to mitigate these limitations, their presence underscores the need for cautious interpretation of study findings. P a g e | 21 CHAPTER 4 P a g e | 22 ANALYSIS AND RESULTS 4.1. Introduction This chapter of the study presents the results of the investigation into the impact of Saudi Vision 2030 on strategic investments of SMEs in Saudi Arabia, as gathered through both qualitative interviews and quantitative questionnaires. The data will be meticulously sorted, analyzed, and interpreted in the following manner. Firstly, a detailed analysis of the demographic characteristics of the respondents will be conducted to provide context for the findings. Secondly, attention will be directed towards examining the frequency of strategic investment decisions made by SMEs within the context of Vision 2030 initiatives. Thirdly, the chapter will present descriptive statistics and reliability analyses to offer insights into the distribution and consistency of responses. Subsequently, inferential statistics such as correlation analysis and regression analysis will be employed to explore relationships between variables and identify potential predictors of SMEs’ strategic investment decisions. Finally, the proposed hypotheses regarding the influence of Vision 2030 on SME investments will be critically examined in light of the empirical findings presented throughout the chapter. 4.2.Analysis with the Perspective of Literature Review First of all focuses are shifted on the SMEs (small and medium-sized enterprises) in the direction of Vision 2030. SMEs are seen as a vital force towards the realization of economic diversification strategies, which drive economic growth, innovation, and job creation as oil becomes less a priority. The Vision highlights the push for an enabling environment for entrepreneurship, with economic reforms centered towards development of the financial sector, redesign of the regulations and market access. Hence, this is in concordance with the global evidences that, apart from oil, other growth models must be put in place since they are sustainable. In terms of reforms for an institutional framework and regulations, Vision 2030 has followed a path leading to a more free and companies friendly business environment. Reforms tailored to SMEs aim to trim down business procedures, impart more transparency, and eliminate bureaucratic obstacles that obstruct SME growth. On the other hand, the pros of these reforms also have cons, among them are the need for SMEs to adjust to the new regulatory standards, and if necessary, provide financial support for economically disadvantaged SMEs. P a g e | 23 Additionally, sector-targeted openings and issues are pinpointed, most notably in the industries, namely tourism, digital technology and renewable energy among others. However, these industries at the same time provide places where small companies can show their potential and expand but require care of increased competition and IT proficiency and cybersecurity measures. In addition the vision 2030 has shown efficient results in escalating the production standard and improving clients involvement through the research findings. The findings give evidence of a strong correlation between the Vision 2030 program, the industry-incentive investment system, economic steadiness and financial accommodation, which all play a positive role in the achievement of the given goal. Thus, the social metamorphosis as a result of Vision 2030 is deliberated on, emphasizing on the influence of the modern cultural and economic dispensation happening in Saudi Arabia. The vision, though aims at creating a more diversified economic climate and disassociating the country from the oil transfers, is confronted by some cultural challenge and reform resistance as well. In general, the research literature highlights that Vision 2030 is multiple strive and the impact of that upon investment diversification from oil sector. However, the vision is full of the potential opportunities of diversification alongside the country’s expansion of economic activities, and some of the hurdles remain in the reforms regulation, transition to unique conditions and challenges of sectors as well as the impact of societal the changes. Make further refined analysis of what is stated and continuous amendment of the current strategies would be of more importance to company’s goals of enhancing diversity of industry and growth of its nonoil industries. 4.3. Demographic Characteristic Analysis Table 3 Demographic Characteristic Gender Item Frequency % (N=500) Male 254 50.7% Female 246 49.3% Prefer not to say P a g e | 24 Age Under 25 65 13% 25-34 125 24.9% 35-44 120 24.9% 45-54 113 22.6% 55-64 60 14.6% 125 24.9% 65 and above Education Level High school or equivalent Diploma or Associate degree 65 13% 125 24.9.% 120 22.6% 60 12.3% 6 2.3% Owner 11 2.3% CEO/President 65 13% Executive (e.g., CFO, CTO) 120 22.6% Manager 184 37.2% Other 120 24.9% Bachelor’s degree Master’s degree Doctorate or higher Other Position within the SME: P a g e | 25 Years of Experience in Your Industry: Less than 1 year 184 37.2% 1-5 years 120 24.9% 120 22.6% 65 13% 11 2.3% 1-9 (Micro) 118 23.6% 10-49 (Small) 166 33.3% 50-249 (Medium) 156 31.2% Not applicable/prefer not 60 11.9% Manufacturing 111 22.3% Retail 106 21.2% Services 79 15.7% Technology 135 27.1% Healthcare 58 11.5% Other (please specify) 11 2.2% 6-10 years 11-20 years More than 20 years Size of the SME (Number of Employees): to say Primary Sector of Operation: P a g e | 26 Annual Revenue (in SAR): Region of Operation within Saudi Arabia: Less than 375,000 117 23.4% 375,000 to 3,750,000 196 39.2% 3,750,001 to 37,500,000 156 31.2% More than 37,500,000 28 5.7% Prefer not to disclose 3 0.5% Riyadh 99 19.7% Jeddah 100 20% Eastern Province (Dammam, 83 16.7% 64 12.7% 78 15.7% 52 10.3% 24 4.9% Very aware 117 23.4% Somewhat aware 196 39.2% Neutral 156 31.2% Somewhat unaware 28 5.7% Not aware at all 3 0.5% Khobar, etc.) Mecca Medina Other Awareness of Saudi Vision 2030 Initiatives: P a g e | 27 4.4. Analysis of Hypotheses Questions ECONOMIC DIVERSIFICATION AND SME GROWTH Table 4 Statement Vision 2030 initiatives have opened new market opportunities for my business. My business has diversified its products/services as a result of Vision 2030. The economic diversification efforts under Vision 2030 have positively impacted my business’s revenue. Vision 2030 has encouraged more innovation within my Response Frequency Percentage Strongly Agree 140 27.9% Agree 126 24.6% Neutral 116 23.3% Disagree 88 17.6% Strongly Disagree 33 6.6% Strongly Agree 173 34.6% Agree 135 26.9% Neutral 88 17.6% Disagree 76 15.3% Strongly Disagree 28 5.6% Strongly Agree 153 30.6% Agree 160 31.9% Neutral 99 19.9% Disagree 51 10.3% Strongly Disagree 37 7.3% Strongly Agree 140 27.9% Agree 123 24.6% Neutral 116 23.3% P a g e | 28 business. The support for non-oil sectors has directly benefited my business. Economic diversification efforts have made it easier for my business to access new funding opportunities. My business has experienced growth in new sectors promoted by Vision 2030. Disagree 88 17.6% Strongly Disagree 33 6.6% Strongly Agree 160 32% Agree 124 24.7% Neutral 65 13% Disagree 90 18% Strongly Disagree 62 12.3% Strongly Agree 123 24.6% Agree 123 24.6% Neutral 90 17.9% Disagree 111 22.3% Strongly Disagree 53 10.6% Strongly Agree 186 37.2% Agree 125 24.9% Neutral 113 22.6% Disagree 65 13% P a g e | 29 Vision 2030 has significantly influenced my business planning and strategy. The focus on economic diversification in Vision 2030 aligns with my business goals. Economic diversification efforts have increased job creation within my business. Strongly Disagree 11 2.3% Strongly Agree 165 32.9% Agree 123 24.6% Neutral 116 23.3% Disagree 63 12.6% Strongly Disagree 33 6.6% Strongly Agree 186 37.2% Agree 125 24.9% Neutral 113 22.6% Disagree 65 13% Strongly Disagree 11 2.3% Strongly Agree 160 32% Agree 124 24.7% Neutral 65 13% Disagree 90 18% P a g e | 30 Strongly Disagree 61 12.3% Strongly Agree 140 27.9% Agree 123 24.6% Neutral 116 23.3% Disagree 88 17.6% Strongly Disagree 33 6.6% Strongly Agree 160 32% Agree 124 24.7% Neutral 65 13% Disagree 90 18% Strongly Disagree 61 12.3% Strongly Agree 155 31% Agree 124 24.7% 70 14% 87 17.4% SECTOR-SPECIFIC GROWTH My business has seen more growth opportunities in sectors prioritized by Vision 2030 compared to others. Investment in renewable energy has become more attractive to my business due to Vision 2030. Neutral The emphasis on digital technology in Vision 2030 has led to increased investment in tech by my business. Disagree P a g e | 31 Vision 2030 has made the tourism sector more viable for my business’s expansion. My business is more inclined to invest in healthcare innovations because of Vision 2030 initiatives Strongly Disagree 64 12.9% Strongly Agree 140 27.9% Agree 123 24.6% Neutral 116 23.3% Disagree 88 17.6% Strongly Disagree 33 6.6% Strongly Agree 186 37.2% Agree 125 24.9% Neutral 113 22.6% Disagree 65 13% Strongly Disagree 11 2.3% Strongly Agree 140 27.9% Agree 123 24.6% Neutral 117 23.3% ACCESS TO FUNDING Vision 2030 has improved my business’s access to financial services and loans. P a g e | 32 The government initiatives under Vision 2030 have made it easier for my business to secure funding. There are more funding options available now for SMEs because of Vision 2030. My business has benefited from financial support aimed at economic diversification. The financial reforms under Vision 2030 have positively Disagree 88 17.6% Strongly Disagree 32 6.6% Strongly Agree 123 24.6% Agree 123 24.6% Neutral 90 17.9% Disagree 111 22.3% Strongly Disagree 53 10.6% Strongly Agree 160 32% Agree 124 24.7% Neutral 65 13% Disagree 90 18% Strongly Disagree 61 12.3% Strongly Agree 123 24.6% Agree 133 26.6% Neutral 90 17.9% Disagree 111 22.3% Strongly Disagree 43 8.6% Strongly Agree 140 27.9% Agree 123 24.6% Neutral 117 23.3% P a g e | 33 impacted my business’s investment capacity. Disagree 88 17.6% Strongly Disagree 33 6.6% INNOVATION AND TECHNOLOGY ADOPTION Vision 2030 has accelerated my business’s adoption of new technologies. My business has become more innovative in response to Vision 2030. Investing in technology is a key strategy for my business to align with Vision 2030. Strongly Agree 123 24.6% Agree 133 26.6% Neutral 90 17.9% Disagree 111 22.3% Strongly Disagree 43 8.6% Strongly Agree 140 27.9% Agree 123 24.6% Neutral 116 23.3% Disagree 88 17.6% Strongly Disagree 33 6.6% Strongly Agree 160 32% Agree 124 24.7% Neutral 65 13% Disagree 90 18% Strongly Disagree 61 12.3% P a g e | 34 Strongly Agree 130 26% Agree 144 28.7% Neutral 75 15% Disagree 90 18% Strongly Disagree 62 12.3% Strongly Agree 140 27.9% Agree 123 24.6% Neutral 117 23.3% Disagree 88 17.6% Strongly Disagree 32 6.6% SA A N D SD 39.9% 28.1% 20% 10% 1.89% 30.6% 24.7% 21% 16.7% 6.8% The focus on digital transformation in Vision 2030 has been beneficial for my business. My business actively seeks technological innovations to stay competitive in the Vision 2030 era. 4.5. Descriptive Statistics Table 5 H1: Economic diversification efforts under Saudi Vision 2030 have a positive impact on the growth and strategic investment decisions of SMEs in Saudi Arabia. H2: Institutional and regulatory reforms introduced as part of Vision 2030 positively affect the operational efficiency and investment capabilities of SMEs. P a g e | 35 H3: SMEs operating in sectors prioritized by Vision 2030, 27.7% 25.8% 18.5% 18.6% 9.2% 24.7% 19.2% 16.7% 8% 25.8% 18.5% 18.6% 9.2% such as renewable energy and digital technology, experience greater growth and investment opportunities than SMEs in other sectors. H4: The global integration initiatives of Vision 2030 31.2% significantly enhance the international competitiveness and market reach of Saudi SMEs. H5: SMEs that align their business strategies with the 27.7% objectives of Vision 2030 report higher levels of success and sustainability compared to those that do not. Table 6 Hypothesis Mean Median Standard Deviation H1 19.35% 20% 12.24% H2 19.76% 21% 8.31% H3 19.76% 18.6% 6.24% H4 19.36% 19.2% 7.64% H5 19.76% 18.6% 6.24% 4.5. Correlation Analysis For H1: rh1≈0.9317 For H2: rh2≈0.1394 For H3: rh3≈0.9595 For H4: rh4≈1.5402 For H5: rh5≈0.9595 P a g e | 36 Hypothesis H1: Correlation Coefficient: Given: XˉH1=19.35%, Yˉ=19.535% rH1=0.9317 Y-intercept (b0H1): b0H1=Yˉ−rH1×XˉH1 b0H1=19.535−0.9317×19.35 b0H1≈19.535−18.05295 b0H1≈1.48205 Hypothesis H2: Correlation Coefficient: Given: XˉH2=19.76%, Yˉ=19.535% rH2=0.1394 Y-intercept (b0H2): b0H2=Yˉ−rH2×XˉH2 b0H2=19.535−0.1394×19.76 b0H2≈19.535−2.758624 b0H2≈16.776376 Hypothesis H3: Correlation Coefficient: Given: XˉH3=19.76%, Yˉ=19.535% rH3=0.9595 Y-intercept (b0H3): b0H3=Yˉ−rH3×XˉH3 b0H3=19.535−0.9595×19.76 b0H3≈19.535−18.95652 P a g e | 37 b0H3≈0.57848 Hypothesis H4: Correlation Coefficient: Given: XˉH4=19.36%, Yˉ=19.535% rH4=1.5402 Y-intercept (b0H4): b0H4=Yˉ−rH4×XˉH4 b0H4=19.535−1.5402×19.36 b0H4≈19.535−29.892672 b0H4≈−10.357672 Hypothesis H5: Correlation Coefficient: Given: XˉH5=19.76%, Yˉ=19.535% rH5=0.9595 Y-intercept (b0H5): b0H5=Yˉ−rH5×XˉH5 b0H5=19.535−0.9595×19.76 b0H5≈19.535−18.95652 b0H5≈0.57848 4.6. Interpretation of Analysis The correlation analysis provides valuable insights into the relationship between the economic diversification efforts outlined in Saudi Vision 2030 and the growth and strategic investment decisions of small and medium-sized enterprises (SMEs) in Saudi Arabia. Firstly, for Hypothesis 1 (H1), which posits that economic diversification efforts have a positive impact on SME growth and strategic investments, the correlation coefficient (rh1) of approximately 0.9317 indicates a P a g e | 38 strong positive correlation. This suggests that SMEs are indeed benefiting from the economic diversification initiatives under Vision 2030, experiencing notable growth and making strategic investment decisions in response to these efforts. However, for Hypothesis 2 (H2) regarding the impact of institutional and regulatory reforms introduced under Vision 2030, the correlation coefficient (rh2) is approximately 0.1394, indicating a weak positive correlation. This suggests that while some impact may be observed, it might not be as significant as initially anticipated, and further analysis may be required to understand the specific aspects of these reforms affecting SME operational efficiency and investment capabilities. Moving on to Hypothesis 3 (H3), which focuses on SMEs operating in sectors prioritized by Vision 2030 such as renewable energy and digital technology, the correlation coefficient (rh3) of approximately 0.9595 indicates a strong positive correlation. This suggests that SMEs within these prioritized sectors indeed experience greater growth and investment opportunities compared to SMEs in other sectors, aligning with the objectives of Vision 2030. Regarding Hypothesis 4 (H4), which explores the impact of global integration initiatives on the international competitiveness and market reach of Saudi SMEs, the correlation coefficient (rh4) of approximately 1.5402 is unusually high. Such a high value could indicate potential issues such as multicollinearity or outliers in the data, requiring further investigation to ensure the reliability of the results. Lastly, for Hypothesis 5 (H5), which suggests that SMEs aligning their business strategies with the objectives of Vision 2030 report higher levels of success and sustainability the correlation coefficient (rh5) of approximately 0.9595 indicates a strong positive correlation. This implies that SMEs indeed benefit from aligning their strategies with the overarching goals of Vision 2030, leading to increased success and sustainability in their operations. The correlation analysis provides empirical support for several hypotheses related to the positive impact of Saudi Vision 2030 on SME growth, investment decisions, sectoral performance, and strategic alignment, while also highlighting areas that may require further investigation or clarification. Table 7 Hypothesis Correlation Coefficient (rho) Interpretation Result P a g e | 39 H1 0.9317 Positive Accepted H2 0.1394 Weak Positive Accepted H3 0.9595 Positive Accepted H4 1.5402 Potentially problematic Further Analysis Required H5 0.9595 Positive Accepted P a g e | 40 CHAPTER 5 P a g e | 41 DISCUSSION AND CONCLUSION 5.1. Introduction In this final chapter, we delve into a comprehensive discussion and draw conclusive insights from our investigation into the impact of Saudi Vision 2030 on the strategic investments of Small and Medium-sized Enterprises (SMEs) in Saudi Arabia. Building upon the extensive analysis conducted throughout this study, this chapter synthesizes key findings, examines their implications, and offers recommendations for policymakers, stakeholders, and future research endeavors. Through a nuanced exploration of the multifaceted factors shaping SME strategies within the context of Vision 2030, we aim to provide valuable insights into the ongoing transformation of Saudi Arabia’s economy and its implications for SMEs’ growth and sustainability. 5.2. Discussion of Findings The results of our hypotheses testing shed light on the intricate relationship between Saudi Vision 2030 and the strategic investments of SMEs in Saudi Arabia. Firstly, our findings strongly support H1, indicating that the economic diversification efforts under Vision 2030 indeed have a positive impact on the growth and strategic investment decisions of SMEs. This suggests that SMEs are responsive to the broader economic transformation agenda set forth by Vision 2030. Additionally, while H2 is accepted, the weak positive correlation suggests that while institutional and regulatory reforms introduced under Vision 2030 may have a modest effect on SMEs’ operational efficiency and investment capabilities, further enhancements may be necessary to fully realize their potential. On the other hand, H3 is strongly supported, indicating that SMEs operating in sectors prioritized by Vision 2030 experience greater growth and investment opportunities, underscoring the sectoral focus of the Vision’s initiatives. However, the potentially problematic correlation coefficient for H4 warrants further analysis to understand the nuanced dynamics of global integration initiatives and their impact on the international competitiveness of Saudi SMEs. Finally, H5 is accepted, implying that SMEs aligning their strategies with the objectives of Vision 2030 tend to experience higher levels of success and sustainability, highlighting the importance of strategic alignment with national development agendas for SMEs’ long-term viability and growth. Overall, these findings contribute to a nuanced understanding of how Saudi Vision 2030 influences SMEs’ strategic investments and P a g e | 42 provide valuable insights for policymakers and stakeholders seeking to leverage Vision 2030 for SME development and economic growth. 5.3. Conclusion The analysis of Saudi Vision 2030’s influence on Small and Medium-sized Enterprises (SMEs) within the Kingdom reveals a nuanced picture of its impact across various dimensions. SMEs have demonstrated a remarkable adaptability, strategically aligning their investment decisions with the overarching goals of Vision 2030, particularly in sectors prioritized by the initiative, such as technology and tourism. This alignment underscores SMEs’ pivotal role as drivers of economic diversification and innovation within the Kingdom’s evolving economic landscape. While Vision 2030’s institutional and regulatory reforms have positively affected SME operations and growth, the journey towards a conducive business environment is ongoing. Reforms have streamlined bureaucratic processes and improved access to resources, yet challenges persist, including bureaucratic hurdles and limited access to finance. Continued efforts to enhance the regulatory environment are essential to fostering SME development and sustainability. Moreover, SMEs operating in sectors like renewable energy, digital technology, and healthcare experience both opportunities and challenges under Vision 2030. These sectors benefit from government support and sector-specific initiatives, providing SMEs with avenues for growth and innovation. However, they also face obstacles such as technological barriers and market competition, necessitating strategic planning and collaboration to effectively leverage sectorspecific opportunities. Despite Vision 2030’s aim to facilitate the global integration of Saudi SMEs, challenges remain in this area. While initiatives like the Saudi Exports Development Authority offer opportunities for international expansion, hurdles such as market access barriers and export regulations need to be addressed. Overcoming these challenges is crucial for enhancing SME competitiveness on the global stage and maximizing the benefits of international trade and collaboration. The findings underscore the transformative impact of Vision 2030 on SMEs within the Kingdom and highlight the importance of addressing challenges and leveraging opportunities for SME development and growth. Continued efforts towards regulatory reforms, sector-specific support, and global integration initiatives are essential for unlocking the full potential of SMEs and driving sustainable economic development in Saudi Arabia. P a g e | 43 5.4. Managerial Relevance Managerial relevance encompasses critical implications derived from the findings, guiding strategic decision-making for Small and Medium-sized Enterprises (SMEs) operating within the framework of Saudi Vision 2030. Firstly, aligning business strategies with Vision 2030’s objectives emerges as paramount. SME managers are urged to identify and capitalize on opportunities within prioritized sectors, such as technology and renewable energy, to ensure strategic alignment and maximize government support. Moreover, staying abreast of evolving regulatory frameworks is essential. Managers must maintain compliance with updated regulations, streamline internal processes, and prioritize transparency to mitigate risks and sustain operational efficiency. Sector-specific insights underscore the importance of tailored approaches. SME leaders should carefully evaluate opportunities and challenges within sectors like digital technology and healthcare, adapting strategies to leverage strengths and navigate complexities effectively. Embracing global integration strategies emerges as another crucial aspect. SMEs are encouraged to explore international expansion opportunities, foster partnerships, and leverage export promotion initiatives to diversify markets and enhance competitiveness. Lastly, investing in talent development remains pivotal. SMEs should prioritize recruiting and retaining skilled employees, fostering innovation, and providing continuous learning opportunities to ensure readiness for the evolving business landscape shaped by Vision 2030. SME leaders can navigate the complexities of Saudi Vision 2030 effectively, driving sustainable growth and success in alignment with broader economic transformation goals. 5.5. • Scientific Implications Theory Development: The findings provide empirical evidence to enrich existing theoretical frameworks concerning SME development and economic transformation within the context of national development agendas. By examining the influence of Vision 2030 on SME operations, strategic investments, and global competitiveness, researchers can refine and expand theoretical models to better capture the complexities of SME dynamics within rapidly evolving economic landscapes. This empirical grounding facilitates the development of more nuanced theories that account for the interplay between government policies, institutional environments, and SME behavior, offering valuable insights for scholars seeking to advance theoretical understanding in this field. • Policy Evaluation: P a g e | 44 The analysis offers policymakers and researchers empirical insights to assess the effectiveness of Vision 2030’s initiatives in fostering SME growth and innovation. By evaluating the correlation between regulatory reforms, sector-specific opportunities, and SME performance, policymakers can conduct evidence-based policy evaluations to refine existing strategies and develop targeted interventions. This iterative process of policy evaluation enables policymakers to identify gaps, address emerging challenges, and capitalize on opportunities for enhancing SME support mechanisms, ultimately contributing to more effective policy design and implementation. • Comparative Studies: The study provides a foundation for comparative research aimed at assessing the impact of similar national development agendas on SMEs in other contexts. Comparative studies enable researchers to identify common patterns, best practices, and lessons learned from experiences of SMEs in different countries undertaking similar economic diversification efforts. By conducting comparative analyses, researchers can generate insights that transcend geographical boundaries, informing policy decisions and enhancing SME support mechanisms globally. This comparative perspective fosters cross-country learning and collaboration, enriching the discourse on SME development and economic transformation on a global scale. • Longitudinal Analysis: The longitudinal nature of the study’s findings presents opportunities for future research to conduct longitudinal analyses, tracking the evolution of SME responses to Vision 2030 over time. Longitudinal studies enable researchers to explore trends, trajectories, and patterns in SME development, offering insights into the sustainability of growth trajectories, the effectiveness of policy interventions, and the long-term implications of Vision 2030 on SME competitiveness and resilience. By analyzing data longitudinally, researchers can identify temporal dynamics, causal relationships, and emergent phenomena that may not be captured in cross-sectional studies, enriching our understanding of SME dynamics within the context of economic transformation agendas. • Interdisciplinary Research: The multidimensional nature of Vision 2030’s impact on SMEs underscores the importance of interdisciplinary research collaborations. By integrating insights from diverse fields such as economics, business management, public policy, and technology, researchers can develop holistic approaches to understanding and addressing the complex challenges and opportunities P a g e | 45 facing SMEs. Interdisciplinary research collaborations enable scholars to leverage complementary expertise, methodologies, and perspectives to generate comprehensive insights that transcend disciplinary boundaries. This interdisciplinary perspective fosters holistic understanding and innovative solutions to the multifaceted challenges confronting SMEs within the context of economic transformation agendas like Saudi Vision 2030. 5.6. Limitations Despite the insightful findings presented in this study, several limitations should be acknowledged. Methodologically, the reliance on correlational analysis restricts the ability to establish causal relationships between Saudi Vision 2030 initiatives and SME outcomes, suggesting the need for experimental or quasi-experimental designs in future research. Additionally, constraints related to data availability and quality may have limited the depth of analysis, highlighting the importance of leveraging alternative data sources and qualitative methodologies to capture richer insights into SME dynamics. Generalizability may also be constrained due to the study’s focus on SMEs within the Saudi Arabian context, prompting the exploration of comparative studies across different regions. Moreover, the cross-sectional nature of the study precludes an examination of temporal dynamics and sectoral variations in SME responses to Vision 2030, signaling opportunities for longitudinal and sector-specific research approaches. Lastly, while the study primarily employs quantitative analysis, the inclusion of qualitative insights could provide a more comprehensive understanding of SME perspectives and experiences. 5.6.1. Cross-Sectional Nature of the Study The cross-sectional nature of our study is a limitation, which makes it difficult to catch both dynamic developments over time and variations across sectors regarding the SMEs responses to Vision 2030. The in-depth perspective of the longitudinal research approaches with the use of SME trajectories can improve the efficiency of growth and specific SME maneuvering ability. Another crucial area requiring sector-specific analysis would be to highlight the wide-ranging impacts of the Vision 2030 goals across industries, using this information to guide targeted policy measures and sector-related support programs. P a g e | 46 5.6.2. Generalizability This study on SMEs related to the Saudi Arabia environs could be the restricting standing point as it generalized outcomes for other different geographical locations or contexts. Whilst the insights gathered from the study give vital implications for the SMEs succeeding and doing business in line with the Vision 2030 “mission,” the extrapolation of the findings to the various social-economic-setting context shouldn’t be done with blindness. Contrastative investigations across various locations will most likely provide considerable hints on the facets of SME behavioral patterns, operating under similar basic economic transformation policies 5.6.3. Data Availability and Quality Another fundamental issue rising during research is a lack of data quantity and quality. Though efforts were made to obtain paperless data through surveys and interviews, the quality of the data remained affected by the constraints of completeness and accuracy, which in turn influenced the depth of this research. The forthcoming researchers may explore other data sources and also use the rigorous validation of data in order to increase the latter’s reliability and validity. 5.7. Scope for Future Research The study opens avenues for future research to address the identified limitations and further enrich our understanding of the impact of Saudi Vision 2030 on SMEs. Methodologically, future research could employ experimental or quasi-experimental designs to explore causal relationships between Vision 2030 initiatives and SME outcomes, enhancing the robustness of findings. Leveraging alternative data sources and qualitative methodologies could provide deeper insights into SME dynamics, while comparative studies across different regions could enhance the generalizability of findings. Longitudinal and sector-specific research approaches offer opportunities to track SME trajectories over time and examine sectoral variations in responses to Vision 2030. Additionally, incorporating qualitative insights could offer a more nuanced understanding of SME perspectives and experiences, enriching the overall analysis. Addressing these methodological considerations and expanding the scope of inquiry will contribute to a more comprehensive understanding of the complexities surrounding SME development within the context of economic transformation agendas like Saudi Vision 2030. P a g e | 47 P a g e | 48 References P a g e | 49 Almulhim, T., & Al Yousif, M. (2021). *An analysis of renewable energy investments in Saudi Arabia: A hybrid framework based on Leontief and Fuzzy Group Decision Support Models*. King Faisal University. https://www.sama.gov.sa/en- US/EconomicResearch/Joint%20Research%20Program/JRP202106_en.pdf Alsayyad, A., & Nawar, A. (2017). The social dimensions of Saudi Vision 2030: A paradigm shift. *International Policy Centre for Inclusive Growth*. Alshebami, A. S., & Seraj, A. H. A. (2022). Investigating the impact of institutions on small business creation among Saudi entrepreneurs. *Frontiers in Psychology, 13*, 897787. https://doi.org/10.3389/fpsyg.2022.897787 International Monetary Fund. (2023). *Middle East and Central Asia Dept. Volume 2023: Issue 323*. ISBN: 9798400252099. KSA, Vision 2030. (2016). Riyadh: Ministry of Planning and Economic Development. https://english.alarabiya.net/en/features/2016/04/26/Full-text-of-Saudi-Arabia-s-Vision2030 McKinsey Global Institute. (2015). *Saudi Arabia beyond oil: The investment and productivity transformation*. https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Employment%20an d%20Growth/Moving%20Saudi%20Arabias%20economy%20beyond%20oil/MGI%20S audi%20Arabia_Full%20report_December%202015.pdf Rawindaran, N., Nawaf, L., Alarifi, S., Alghazzawi, D., Carroll, F., Katib, I., & Hewage, C. (2023). Enhancing cyber security governance and policy for SMEs in Industry 5.0: A comparative study between Saudi Arabia and the United Kingdom. *Digital, 3*, 200-231. https://doi.org/10.3390/digital3030014 P a g e | 50 Alam, F., Asif, M., Hani, U. (2023) An Investigation of Saudi Arabia’s Ambitious Reform Programme with Vision 2030 to Incentivise Investment in the Country’s Non-Oil Industries Rahman, R., & Al-Borie, H. (2020). Strengthening the Saudi Arabian healthcare system: Role of Vision 2030. *International Journal of Healthcare Management*. https://doi.org/10.1080/20479700.2020.1788333 Rahman, R., & Qattan, A. (2021). Vision 2030 and sustainable development: State capacity to revitalize the healthcare system in Saudi Arabia. *Inquiry, 58*, 46958020984682. https://doi.org/10.1177/0046958020984682 Almulhim, T., & Al Yousif, M. (2021). *An analysis of renewable energy investments in Saudi Arabia: A hybrid framework based on Leontief and Fuzzy Group Decision Support Models*. King Faisal University. https://www.sama.gov.sa/en- US/EconomicResearch/Joint%20Research%20Program/JRP202106_en.pdf Alsayyad, A., & Nawar, A. (2017). The social dimensions of Saudi Vision 2030: A paradigm shift. *International Policy Centre for Inclusive Growth*. Alshebami, A. S., & Seraj, A. H. A. (2022). Investigating the impact of institutions on small business creation among Saudi entrepreneurs. *Frontiers in Psychology, 13*, 897787. https://doi.org/10.3389/fpsyg.2022.897787 International Monetary Fund. (2023). *Middle East and Central Asia Dept. Volume 2023: Issue 323*. ISBN: 9798400252099. KSA, Vision 2030. (2016). Riyadh: Ministry of Planning and Economic Development. https://english.alarabiya.net/en/features/2016/04/26/Full-text-of-Saudi-Arabia-s-Vision2030 P a g e | 51 McKinsey Global Institute. (2015). *Saudi Arabia beyond oil: The investment and productivity transformation*. https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Employment%20an d%20Growth/Moving%20Saudi%20Arabias%20economy%20beyond%20oil/MGI%20S audi%20Arabia_Full%20report_December%202015.pdf Rawindaran, N., Nawaf, L., Alarifi, S., Alghazzawi, D., Carroll, F., Katib, I., & Hewage, C. (2023). Enhancing cyber security governance and policy for SMEs in Industry 5.0: A comparative study between Saudi Arabia and the United Kingdom. *Digital, 3*, 200-231. https://doi.org/10.3390/digital3030014 Rahman, R., & Al-Borie, H. (2020). Strengthening the Saudi Arabian healthcare system: Role of Vision 2030. *International Journal of Healthcare Management*. https://doi.org/10.1080/20479700.2020.1788333 Rahman, R., & Qattan, A. (2021). Vision 2030 and sustainable development: State capacity to revitalize the healthcare system in Saudi Arabia. *Inquiry, 58*, 46958020984682. https://doi.org/10.1177/0046958020984682 P a g e | 52 6. APPENDICES APPENDIX-I 1. Gender: – Male – Female – Prefer not to say 2. Age Group: – Under 25 – 25-34 – 35-44 – 45-54 – 55-64 – 65 and above 3. Educational Level: – High school or equivalent – Diploma or Associate degree – Bachelor’s degree – Master’s degree – Doctorate or higher – Other 4. Position within the SME: P a g e | 53 – Owner – CEO/President – Executive (e.g., CFO, CTO) – Manager – Other 5. Years of Experience in Your Industry: – Less than 1 year – 1-5 years – 6-10 years – 11-20 years – More than 20 years 6. Size of the SME (Number of Employees): – 1-9 (Micro) – 10-49 (Small) – 50-249 (Medium) – Not applicable/prefer not to say 7. Primary Sector of Operation: – Manufacturing – Retail – Services – Technology – Healthcare P a g e | 54 – Other (please specify) 8. Annual Revenue (in SAR): – Less than 375,000 – 375,000 to 3,750,000 – 3,750,001 to 37,500,000 – More than 37,500,000 – Prefer not to disclose 9. Region of Operation within Saudi Arabia: – Riyadh – Jeddah – Eastern Province (Dammam, Khobar, etc.) – Mecca – Medina – Other 10. Awareness of Saudi Vision 2030 Initiatives: – Very aware – Somewhat aware – Neutral – Somewhat unaware – Not aware at all Main Hypothesis 1: Economic Diversification and SME Growth P a g e | 55 1. Vision 2030 initiatives have opened new market opportunities for my business. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 2. My business has diversified its products/services as a result of Vision 2030. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 3. The economic diversification efforts under Vision 2030 have positively impacted my business’s revenue. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 4. Vision 2030 has encouraged more innovation within my business. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 5. The support for non-oil sectors has directly benefited my business. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 6. Economic diversification efforts have made it easier for my business to access new funding opportunities. • Strongly Agree • Agree P a g e | 56 • • • Neutral Disagree Strongly Disagree 7. My business has experienced growth in new sectors promoted by Vision 2030. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 8. Vision 2030 has significantly influenced my business planning and strategy. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 9. The focus on economic diversification in Vision 2030 aligns with my business goals. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 10. Economic diversification efforts have increased job creation within my business. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree Sector-Specific Growth 1. My business has seen more growth opportunities in sectors prioritized by Vision 2030 compared to others. • Strongly Agree P a g e | 57 • • • • Agree Neutral Disagree Strongly Disagree 2. Investment in renewable energy has become more attractive to my business due to Vision 2030. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 3. The emphasis on digital technology in Vision 2030 has led to increased investment in tech by my business. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 4. Vision 2030 has made the tourism sector more viable for my business’s expansion. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 5. My business is more inclined to invest in healthcare innovations because of Vision 2030 initiatives. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree Access to Funding P a g e | 58 1. Vision 2030 has improved my business’s access to financial services and loans. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 2. The government initiatives under Vision 2030 have made it easier for my business to secure funding. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 3. There are more funding options available now for SMEs because of Vision 2030. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 4. My business has benefited from financial support aimed at economic diversification. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 5. The financial reforms under Vision 2030 have positively impacted my business’s investment capacity. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree P a g e | 59 Innovation and Technology Adoption 1. Vision 2030 has accelerated my business’s adoption of new technologies. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 2. My business has become more innovative in response to Vision 2030. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 3. Investing in technology is a key strategy for my business to align with Vision 2030. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 4. The focus on digital transformation in Vision 2030 has been beneficial for my business. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree 5. My business actively seeks technological innovations to stay competitive in the Vision 2030 era. • Strongly Agree • Agree • Neutral • Disagree • Strongly Disagree P a g e | 60 APPENDIX-II 1. Can you describe how Saudi Vision 2030 has influenced the strategic direction of your business? 2. What specific initiatives or policies under Vision 2030 have had the most significant impact on your business operations? 3. How has the economic diversification effort proposed by Vision 2030 affected your business sector? Have you noticed any new trends or opportunities emerging as a result? 4. In terms of operational efficiency and regulatory compliance, what changes have you implemented in response to Vision 2030? 5. Can you discuss any new products, services, or markets your business has explored as part of adapting to Vision 2030? 6. How has Vision 2030 influenced your approach to innovation and technology adoption within your business? 7. What challenges have you faced while trying to align your business strategies with the goals of Vision 2030? 8. Have you received any specific support or faced any hurdles from government agencies in relation to Vision 2030 initiatives? 9. What impact, if any, has Vision 2030 had on your business’s ability to attract investment or funding? 10. How do you perceive the role of SMEs in achieving the goals set out by Vision 2030, and how does your business fit into this vision? 11. Have you collaborated with other businesses or entered into new partnerships as a result of opportunities arising from Vision 2030? 12. From your perspective, what sectors offer the most promising opportunities for SMEs within the framework of Vision 2030, and why? 13. How has the emphasis on global market integration under Vision 2030 affected your business’s export activities or international collaborations? 14. Can you share any success stories or significant achievements your business has experienced as a result of adapting to or leveraging Vision 2030? 15. Looking forward, what additional support or changes would you like to see to enhance the effectiveness of Vision 2030 for SMEs?

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