Mapping the Fashion Entrepreneurship Ecosystem in Saudi Arabia: Impacts on Entrepreneurial Orientation and Business Performance of Micro, Small, and Medium Enterprises.

Abstract

This thesis investigates the influence of the Fashion Entrepreneurship Ecosystem (FEE) on Entrepreneurial Orientation (EO) and Business Performance (BP) within fashion Micro, Small, and Medium Enterprises (MSMEs) in Saudi Arabia. The study adopts a mixed-methods explanatory design, integrating a quantitative survey with 223 fashion MSMEs and qualitative interviews with 15 ecosystem stakeholders. Drawing on the Resource-Based View (RBV), EO defined through innovativeness, proactiveness, and risk-taking, is conceptualised as a core intangible resource that mediates the relationship between external ecosystem elements and firm success. The quantitative phase employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to test the direct and mediating effects of FEE on EO and BP. The results revealed that FEE has a significant positive impact on both EO and BP. EO also showed a strong direct effect on BP and partially mediated the relationship between FEE and BP. These findings underscore the strategic importance of EO in enhancing business outcomes and demonstrate the role of the ecosystem in shaping entrepreneurial capacities. The qualitative phase utilised thematic analysis to explore how fashion entrepreneurs and ecosystem actors experience and interpret the FEE. Key challenges identified include limited access to finance, insufficient entrepreneurial education, misaligned support structures, and persistent cultural stigma associated with fashion entrepreneurship. The study also highlights the mismatch between existing support services often designed for technology sectors and the specific needs of fashion startups. Additional barriers were found in rural accessibility, institutional support, and gendered constraints. Overall, the findings offer a context-specific understanding of the Saudi FEE and its role in shaping EO and BP. The research contributes theoretical insights into the RBV and EO literature and provides practical recommendations aligned with Vision 2030 to strengthen policy, education, and support mechanisms in Saudi Arabia’s creative economy.