Examining the Barriers and Enablers for the Internationalization of Saudi Arabian Social Enterprises
Date
2024-01-10
Authors
Saaty, Naif
Journal Title
Journal ISSN
Volume Title
Publisher
Saudi Digital Library
Abstract
This study seeks to investigate the expansion of social enterprises in Saudi Arabia and seeks to answer the question raised by researchers regarding the paucity of research about traditional commercial enterprises compared with social enterprises.
The study uses a multiple case study approach, and the findings show that social enterprises face several motivations driving internationalization efforts were found to be (1) financial motivation, (2) solving social problems in the international market, and (3) the Islamic/Muslim culture of applying strong social values. Moreover, the study identifies several enablers that can facilitate social enterprise internationalization, including (1) human resources skills and experience; (2) the firm’s global mindset; (3) network inclusion/membership; (4) slack resources of the firm; and (5) psychic distance/similar language, culture, and business practices. Also, the study identifies several barriers, such as (1) cultural differences; (2) lack of human resources; (3) identity confusion; (4) the perceived credibility of social institutions; (5) tension between strategy and structure; (6) economic/ lack of financial resources and support; and (7) lack of information and knowledge about foreign markets. Furthermore, the primary in addition, the study adopts an ambidexterity lens to examine how social enterprises manage the tension between profitability and social responsibility.
Drawing on these findings, the study advances a new model of social enterprise internationalization. This Model offers a comprehensive framework of social enterprise internationalization that considers both internal and external factors affecting these enterprises and shows the processes they experience. In addition to the model, this study contributes to both theory and practice in several other ways. It offers a deeper understanding of the barriers and enablers of internationalization for social enterprises in the Saudi Arabian context
Further, the study develops a context-specific understanding of social enterprise internationalization - with the study’s focus on Saudi Arabia providing a unique perspective in a region in which research on this topic is limited. The findings highlight the country’s supportive policy environment and entrepreneurial culture, which offer opportunities for social enterprises to thrive.
Description
This research aims to examine the barriers, enablers, and motivations for the expansion processes of Saudi Arabian social enterprises. Further, the research aims to investigate the tension between profitability and responsibility by examining how the tensions manifest and are resolved in practice (Smith et al., 2013). Profitability tensions are recognized as an inherent part of the issues facing social enterprises, yet our knowledge of how they can be dealt with remains incomplete, and this research will investigate and provide greater insights into this domain.
Social enterprises have a unique challenge of balancing their social mission with revenue generation to ensure their sustainability. However, the scope of social enterprises varies widely, as social enterprises need to generate revenue to continue in business, some focus more on their social mission while others focus on profit-making in addition to social initiatives. Thus, to comprehensively understand the issues surrounding social enterprises and provide suggestions to address them, the researcher has opted for a multiple case study approach. By studying multiple cases, the researcher can identify common patterns, unique features, and contextual factors that contribute to the success or failure of social enterprises. This approach provides a more comprehensive and nuanced understanding of social enterprises which will help in informing theory development, policy-making, and practical insights aimed at supporting social enterprise development. The rationale for the multiple case study approach is outlined further within the methodology chapter, with specific reference to research design, sampling, and data collection.
Research Questions:
These endeavors were guided by the following research questions (RQs):
RQ1: What barriers do social enterprises face when internationalizing their operations?
RQ2: What are the enablers and motivations of social enterprises when expanding internationally?
RS3: How do social enterprises resolve the paradox/tension between profitability and responsibility?
RQ4: What steps are involved / observable in the internationalization processes of social enterprises?
Keywords
Social Enterprises
Citation
Journals and Books