IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v15y2025i2p59-d1589302.html
   My bibliography  Save this article

Digital Synergy and Strategic Vision: Unlocking Sustainability-Oriented Innovation in Saudi SMEs

Author

Listed:
  • Karam Zaki

    (Department of Business Administration, College of Science and Humanities, Shaqra University, Dawadmi 17452, Saudi Arabia
    Department of Hotel Studies, Faculty of Tourism and Hotels, Fayoum University, Fayoum 63514, Egypt)

  • Abrar Alhomaid

    (Department of Business Administration, College of Business and Economics, Qassim University, Buraidah 51452, Saudi Arabia)

  • Ashraf Ghareb

    (Department of Hotel Studies, Faculty of Tourism and Hotels, Fayoum University, Fayoum 63514, Egypt)

  • Hany Shared

    (Department of Business Administration, College of Science and Humanities, Shaqra University, Dawadmi 17452, Saudi Arabia)

  • Alaa Raslan

    (Department of Hotel Studies, Faculty of Tourism and Hotels, Fayoum University, Fayoum 63514, Egypt)

  • Gamal S. A. Khalifa

    (Department of Hotel Studies, Faculty of Tourism and Hotels, Fayoum University, Fayoum 63514, Egypt
    Faculty of Business, Higher Colleges of Technology, AAF, Abu Dhabi 25026, United Arab Emirates)

  • Ahmed K. Elnagar

    (Administrative and Financial Sciences Department, Applied College, Taibah University, Medinah 41461, Saudi Arabia
    Hotel Management Department, Faculty of Tourism & Hotel Management, Suez Canal University, Ismailia 41522, Egypt)

Abstract

This research examines the proposition that enhancing sustainable innovation can be particularly effective when the focus is on strategy, machine learning, and digitalization. The study specifically targets the complex interactions among strategic alignment (SA), sustainability-oriented innovation (SOI), and digital transformation (DT) within small and medium-sized enterprises (SMEs) in Saudi Arabia, particularly within the service sector. A moderated mediation framework was constructed to analyze the influence of SA on SOI, the mediating role of DT, and the moderating effect of strategic orientation (SO). Data were collected through structured surveys from 339 SMEs using a quantitative research design and a cross-sectional methodology. The partial least squares structural equation modeling (PLS-SEM) technique was employed to validate the proposed framework and hypotheses. The results indicate that SA significantly boosts SOI, with DT acting as a strong mediator in this connection. Furthermore, SO moderates the relationships between SA and SOI, SA and DT, and DT and SOI, highlighting its essential role in shaping the dynamics of sustainable innovation. These findings emphasize the necessity of aligning strategic initiatives with digital advancements to foster innovation that achieves a balance among economic, social, and environmental objectives. This study contributes to existing literature by filling the research gap regarding SOI and DT in Saudi SMEs and offers practical insights for SMEs facing sustainability challenges. Future research should delve deeper into digital technology configurations, industry-specific contexts, and cross-national applications to improve the applicability of these findings.

Suggested Citation

  • Karam Zaki & Abrar Alhomaid & Ashraf Ghareb & Hany Shared & Alaa Raslan & Gamal S. A. Khalifa & Ahmed K. Elnagar, 2025. "Digital Synergy and Strategic Vision: Unlocking Sustainability-Oriented Innovation in Saudi SMEs," Administrative Sciences, MDPI, vol. 15(2), pages 1-23, February.
    • Handle: RePEc:gam:jadmsc:v:15:y:2025:i:2:p:59-:d:1589302
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/15/2/59/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/15/2/59/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    2. Xiaoyan Pan & Kum-Sik Oh & Mengmeng Wang, 2021. "Strategic Orientation, Digital Capabilities, and New Product Development in Emerging Market Firms: The Moderating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 13(22), pages 1-16, November.
    3. Ida Bagus Nyoman Udayana & Naili Farida & Ambar Lukitaningsih & Heru Kurnianto Tjahjono & Nuryakin, 2021. "The important role of customer bonding capability to increase marketing performance in small and medium enterprises," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1932239-193, January.
    4. Marta Gancarczyk & Jon Mikel Zabala Iturriagagoitia, 2015. "The Process of the Growth of Small and Medium-Sized Enterprises (SMEs)," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(4), pages 3-24.
    5. Abdulaziz Adel Aldaarmi, 2024. "Fintech Service Quality of Saudi Banks: Digital Transformation and Awareness in Satisfaction, Re-Use Intentions, and the Sustainable Performance of Firms," Sustainability, MDPI, vol. 16(6), pages 1-19, March.
    6. 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.
    7. Salaheddine Bendak & Amir Moued Shikhli & Refaat H. Abdel-Razek, 2020. "How changing organizational culture can enhance innovation: Development of the innovative culture enhancement framework," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1712125-171, January.
    8. Luis Javier Garcia-Martinez & Sascha Kraus & Matthias Breier & Andreas Kallmuenzer, 2023. "Untangling the relationship between small and medium-sized enterprises and growth: a review of extant literature," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 455-479, June.
    9. Kamel Touati & Ousama Ben-Salha, 2024. "Reconsidering the Long-Term Impacts of Digitalization, Industrialization, and Financial Development on Environmental Sustainability in GCC Countries," Sustainability, MDPI, vol. 16(9), pages 1-16, April.
    10. Cho, Young Sam, 2022. "Digital transformation Strategy for Small and Medium-Sized Enterprises," Research Papers 22/1, Korea Institute for Industrial Economics and Trade.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trujillo-Gallego, Mariana & Sarache, William & Sousa Jabbour, Ana Beatriz Lopes de, 2022. "Digital technologies and green human resource management: Capabilities for GSCM adoption and enhanced performance," International Journal of Production Economics, Elsevier, vol. 249(C).
    2. Jiatong Yu & Jiajue Wang & Taesoo Moon, 2022. "Influence of Digital Transformation Capability on Operational Performance," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    3. Jinshan Zhang & Man Liu, 2024. "How to Leverage Digital Sustainability Orientation to Promote Environmentally Sustainable Practices of Manufacturing Enterprises in China," Sustainability, MDPI, vol. 16(12), pages 1-20, June.
    4. Sadiq, Muhammad & Nawaz, Muhammad Atif & Sharif, Arshian & Hanif, Sobia, 2024. "Bridging green supply chain practices and environmental performance in Chinese semiconductor sector: With the role of energy efficiency and green HRM," International Journal of Production Economics, Elsevier, vol. 277(C).
    5. Mai Mostafa Awad & Abd‘Elazez Hashem & Hend Mohamed Naguib, 2022. "The Impact of Lean Management Practices on Economic Sustainability in Services Sector," Sustainability, MDPI, vol. 14(15), pages 1-27, July.
    6. Hayford Asare Obeng & Richard Arhinful & Leviticus Mensah & Jerry Seth Owusu-Sarfo, 2024. "Assessing the Influence of the Knowledge Management Cycle on Job Satisfaction and Organizational Culture Considering the Interplay of Employee Engagement," Sustainability, MDPI, vol. 16(20), pages 1-28, October.
    7. Morais, Ana Catarina & Ishida, Akira & Matsuda, Ruriko, 2024. "Ethical food consumption drivers in Japan. A S–O-R framework application using PLS-SEM with a MGA assessment based on clustering," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    8. Kautish, Pradeep & Paço, Arminda & Thaichon, Park, 2022. "Sustainable consumption and plastic packaging: Relationships among product involvement, perceived marketplace influence and choice behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    9. Zhikun Ding & Xinyue Huang & Xinrui Wang & Qiaohui Chen & Jiasheng Zhang & Zezhou Wu, 2024. "Investigating the Determinants of Construction Stakeholders’ Intention to Use Construction and Demolition Waste Recycling Products Based on the S-O-R Model in China," Sustainability, MDPI, vol. 16(6), pages 1-17, March.
    10. Sangryeong Lee & Soo-Kyoung Lee & Jin-Woo Park, 2024. "The Effect of Service Quality and Sustainability Practices on Brand Equity: The Case of Korean Air Passengers," Sustainability, MDPI, vol. 16(11), pages 1-20, May.
    11. Henda Omri & Anis Omri & Abdessalem Abbassi, 2024. "Macro-level determinants of entrepreneurial behavior and motivation," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 2629-2667, December.
    12. Trinh Le Tan & Khanh Nguyen Chau Ngoc & Hien Le Thi Thanh & Hoai Nguyen Thi Thu & Uyen Vo Truong Hoang, 2024. "Enhancing Repurchase Intention on Digital Platforms Based on Shopping Well-Being Through Shopping Value, Trust and Impulsive Buying," SAGE Open, , vol. 14(3), pages 21582440241, September.
    13. Tarcia Camily Cavalcante Quezado & Nuno Fortes & William Quezado Figueiredo Cavalcante, 2022. "The Influence of Corporate Social Responsibility and Business Ethics on Brand Fidelity: The Importance of Brand Love and Brand Attitude," Sustainability, MDPI, vol. 14(5), pages 1-20, March.
    14. Talwar, Shalini & Kaur, Puneet & Escobar, Octavio & Lan, Sai, 2022. "Virtual reality tourism to satisfy wanderlust without wandering: An unconventional innovation to promote sustainability," Journal of Business Research, Elsevier, vol. 152(C), pages 128-143.
    15. Anna & JarosÅ‚aw & Joanna, 2021. "The impact of market orientation on the performance of MSMEs operating in technology parks: The role of market dynamism," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 17(2), pages 29-52.
    16. Ashraf Sharif & Saira Hanif Soroya & Shakil Ahmad & Khalid Mahmood, 2021. "Antecedents of Self-Disclosure on Social Networking Sites (SNSs): A Study of Facebook Users," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    17. Mohd Yusoff Yusliza & Amirudin Amirudin & Raden Aswin Rahadi & Nik Afzan Nik Sarah Athirah & Thurasamy Ramayah & Zikri Muhammad & Francesca Dal Mas & Maurizio Massaro & Jumadil Saputra & Safiek Mokhli, 2020. "An Investigation of Pro-Environmental Behaviour and Sustainable Development in Malaysia," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    18. Pipatpong Fakfare & Walanchalee Wattanacharoensil, 2023. "Low‐carbon tourism for island destinations: A crucial alternative for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 180-197, February.
    19. Yan, Ruihe & Gong, Xiang, 2022. "Peer-to-peer accommodation platform affordance: Scale development and empirical investigation," Journal of Business Research, Elsevier, vol. 144(C), pages 922-938.
    20. Eric De Vera Reynoso & Yogi Tri Prasetyo & Satria Fadil Persada & Klint Allen Mariñas & Omar Paolo Benito & Reny Nadlifatin & Ma. Janice J. Gumasing & Irene Dyah Ayuwati, 2024. "The Effect of the COVID-19 Pandemic on Turnover Intentions among Field Technicians: A Case Study in Philippines," Sustainability, MDPI, vol. 16(15), pages 1-16, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:15:y:2025:i:2:p:59-:d:1589302. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.