Internal and External Determinants of Adaptive Capacity in Saudi Large Companies

Abstract

Purpose: This thesis identifies the key determinants (internal and external) of the adaptive capacity needed by Saudi Arabian large companies to facilitate a sustainable performance. The thesis examines the differentiation of adaptive capacity from other related concepts, as well as its application challenges and benefits. It further highlights the internal and external factors affecting adaptive capacity, with a specific focus on the Saudi Arabian context. In this context, the thesis identifies the key factors influencing the adaptive capacity of business organisations. It also examines internal factors such as leadership, organisational culture, innovation and employee skills (RQ1). Additionally, this thesis focuses on analysing external influences, including socioeconomic shifts, regulatory frameworks and technological changes (RQ2). It further explores limitations to adaptability (RQ3) and strategies for enhancing it (RQ4). This forms a critical foundation for the study’s empirical investigation and contributes to both academic discourse and practical implementations. Methodology: The methodology employed in this thesis adopts an interpretivist philosophy. Semi-structured interviews are used to collect textual data from 25 managers working in the supply chain and human resources departments in eight different companies in the Saudi food and beverage industry. A thematic analysis is conducted to extract the themes and patterns from interview transcripts. In this context, NVivo 14 is used to extract codes from the interview transcripts for further thematic analysis. Results: The findings reveal that adaptive capacity in Saudi food and beverage companies is driven by strong leadership, an innovation-focused culture and skilled employees interacting with socioeconomic, technological and regulatory forces. Novel insights reveal that external drivers act as both enablers and constraints, while barriers such as resistance to change, skill shortages and resource limitations persist. By addressing the internal and external determinants, identifying challenges and proposing strategies, the study answers the research questions, extends the adaptive capacity literature and provides practical guidance for Saudi firms. Contribution: The study concludes that adaptive capacity depends on the interplay between internal factors, including leadership, culture and employee skills, and external forces, such as socioeconomic shifts, technological change and regulation. It contributes to the literature by providing novel, context-specific evidence from Saudi Arabia, extending adaptive capacity theory beyond Western-centric studies. For the industry, it recommends leadership, an innovation culture, learning and collaboration to strengthen resilience and competitiveness