The Changing Dynamics of Regulations in the Charity Sector from the Perspective of Institutional Logics: The Case of Saudi Arabia

Abstract

Using institutional logics theory, this study investigated the evolution of charity governance in the context of Saudi Arabia. From an institutional logics perspective, it explored changes in the regulatory influence of Islam in Saudi Arabia, and in the Saudi legal system. Saudi Arabia was selected as a case for this research because it offers a rich and unique example of historical and cultural variation in the influence of a multiplicity of institutional logics. A qualitative approach was consequently adopted to explore regulatory governance in the organisational field, drawing upon semi-structured interviews and historical document analysis. A total of 27 interviews were conducted with six different groups in the field: legislators, executives, standard setters, regulators, charity board members, and preparers. The findings of this study are presented in stages, each of which is associated with key events that triggered changes in the field’s practices, behaviours, and institutional logics. This study extends institutional logics theory by exploring the interaction between the multiplicity of institutional logics that have prevailed during different time periods within the Saudi charity field. Three institutional logics were identified as having most influence on changing practices in the context: religion, the state, and professions. It was found that regulatory reforms in the Saudi charity sector have been historically associated with these institutional logics, moderated by the influence of the state and professions to elicit greater emphasis, stronger interest, and mandate on the socio-economic characteristics of society. This has resulted in radical changes to practices and behaviour in the selected field. Moreover, this study reveals that the demand for regulatory reform has not only been driven by a need to demonstrate the increasing legitimacy of charities and prevent unregulated charity activities, but also to help fulfil the socio-economic goals set out in Saudi Vision 2030.