The Entrepreneurial Orientation of Females in Saudi Arabia: The Associations with Informal and Formal Institutions

Abstract

While entrepreneurship is considered a critical factor in developing economies, it is essential to note that the focus on entrepreneurship has broadened from investigating key individual characteristics influencing entrepreneurship to exploring the influence of institutional factors such as policies, education, financial support and other informal factors. Therefore, this study examined the impact of national culture (NC) represented by Hofstede’s dimensions, namely power distance tolerance (PD), uncertainty avoidance (UA), individualism (IND), masculinity (MAS) and long-term orientation (LTO), on entrepreneurial orientation (EO) among female Saudi entrepreneurs in Saudi Arabia. The study also examined the moderating effect of access to finance (ATF) on the relationship between cultural dimensions and EO. The study revealed valuable results, including the fact that female entrepreneurs reported a quite different set of cultural values from those of Saudi Arabia as a whole, and that their IND and MAS positively influenced their EO respectively. In contrast, their LTO, UA and PD showed no significant association with EO. Furthermore, the hypothesised moderating effect of ATF on the relationships between NC and EO was not supported. The findings emphasise various important conclusions. For example, as ATF was not significant here, there may be a need to provide comprehensive support systems to enhance EO, such as mentorship programmes, customised entrepreneurial training, and other market access initiatives. Saudi policymakers may focus on combining financial and non-financial support, including capacity-building and support, which can be done by developing multi- faceted strategies that enhance entrepreneurial ecosystems and manage entrepreneurs' challenges. Furthermore, multi-faceted strategies developed by policymakers may wish to address gender-specific challenges by implementing tailored entrepreneurial training programmes, increasing female representation in leadership roles, and creating inclusive networking opportunities.