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Exploring the Effects of Entrepreneurial and Digital Orientations on the Competitive Advantage of Saudi Firms: Is Strategic Agility the Missing Link?

Author

Listed:
  • Wassim J. Aloulou

    (Business Administration Department, College of Business, Imam Mohammad Ibn Saud Islamic University, Riyadh 12652, Saudi Arabia)

  • Amin K. Alsadi

    (Business Administration Department, College of Business, Imam Mohammad Ibn Saud Islamic University, Riyadh 12652, Saudi Arabia)

  • Faouzi M. Ayadi

    (Business Administration Department, College of Business, Imam Mohammad Ibn Saud Islamic University, Riyadh 12652, Saudi Arabia)

  • Thamir H. Alaskar

    (Business Administration Department, College of Business, Imam Mohammad Ibn Saud Islamic University, Riyadh 12652, Saudi Arabia)

Abstract

This study explores the intricate relationships between entrepreneurial orientation (EO), digital orientation (DO), strategic agility (SA), and competitive advantage (CA) in Saudi firms. We investigate whether strategic agility serves as the missing link in these relationships. We examine direct and indirect effects among these constructs using structural equation modeling on data collected from 307 Saudi firms. The results confirm the direct positive links between EO and SA with CA. However, the findings also reveal a surprising result—there is no direct link between DO and CA. At the same time, both DO and EO exerted significant positive influences on SA. This study emphasizes the mediating role of SA. We find that SA partially mediates the relationship between EO and CA, underlining the importance of EO while pointing out the additional value given to this relationship by SA. Additionally, SA fully mediates the relationship between DO and CA, suggesting that firms must develop SA to translate their digital capabilities into CA. These results contribute to the strategic management literature by explaining the interplay between strategic orientations, agility, and competitive advantage in the Saudi context. They also provide practical implications for managers seeking to enhance the competitiveness of their firms during this digital age by showing that investing in SA in conjunction with entrepreneurial and digital resources is of paramount importance.

Suggested Citation

  • Wassim J. Aloulou & Amin K. Alsadi & Faouzi M. Ayadi & Thamir H. Alaskar, 2024. "Exploring the Effects of Entrepreneurial and Digital Orientations on the Competitive Advantage of Saudi Firms: Is Strategic Agility the Missing Link?," Administrative Sciences, MDPI, vol. 14(11), pages 1-23, November.
    • Handle: RePEc:gam:jadmsc:v:14:y:2024:i:11:p:306-:d:1524063
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    References listed on IDEAS

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    1. Osama Musa Ali Al-Darras & Cem Tanova, 2022. "From Big Data Analytics to Organizational Agility: What Is the Mechanism?," SAGE Open, , vol. 12(2), pages 21582440221, June.
    2. Rameshwar Dubey & David J. Bryde & Cyril Foropon & Gary Graham & Mihalis Giannakis & Deepa Bhatt Mishra, 2022. "Agility in humanitarian supply chain: an organizational information processing perspective and relational view," Annals of Operations Research, Springer, vol. 319(1), pages 559-579, December.
    3. Kindermann, Bastian & Beutel, Sebastian & Garcia de Lomana, Gonzalo & Strese, Steffen & Bendig, David & Brettel, Malte, 2021. "Digital orientation: Conceptualization and operationalization of a new strategic orientation," European Management Journal, Elsevier, vol. 39(5), pages 645-657.
    4. Kibeshi Kiyabo & Nsubili Isaga, 2020. "Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-15, December.
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