The Role of Corporate Governance for SOEs in Contributing to Achieving the Country's Objectives: Evidence from Saudi Arabia

Abstract

The importance that the corporate governance of SOEs has when it comes to their contribution to the development of an economy is hinged on the fact that proper corporate governance positions SOEs to contribute positively to the efficiency and competitiveness of an economy. The research aims to critically assess the role of corporate governance in enabling State-Owned Enterprises (SOEs) to contribute to the achievement of a country’s goals, using the Saudi Vision 2030 as a case study. In this research, a qualitative research method is adopted, and the case study research approach is employed in this research. In line with the qualitative research method and the case study approach, data was collected using interviews, particularly semi-structured interviews. A thematic analysis approach was employed in analysing the data collected from the interview. In the interview conducted, a total of 12 participants were interviewed. The data analysed points to the fact that the strategic alignment of the corporate governance of SOEs with national objectives is facilitated by the role of PIF and government entities, decision-making, oversights, as well as monitoring and evaluation mechanisms in the SOEs. The findings from the research show that while there are both internal and external factors that threaten the ability of SOEs to contribute to national goals such as the Saudi Vision 2030, adaptability and flexibility of corporate governance structures play a role in helping the SOEs to navigate these challenges successfully, while active stakeholder engagement, performance evaluation mechanisms, as well as transparency and accountability all play roles in supporting the SOEs in ensuring their corporate governance strategies and activities align them with the Saudi Vision 2030.