The Internationalisation of Saudi SMEs Based on Cultural Differences’ Risk and Opportunity

Abstract

Purpose: This research explores the intricate framework of cultural differences and their impact on the internationalisation of Saudi Arabia's small and medium size enterprises (SMEs). The research examines the various cultural dimensions that have an impact on internationalisation. Method: A primary research was conducted using a structured online questionnaire to obtain quantitative data, with 200 Saudi SMEs employees at the managerial and operational levels. 13 thematic questions in the questionnaire were created with Qualtric software. Samples were gathered randomly using the researcher's LinkedIn profile, email, WhatsApp, and Telegram. SPSS version 27 was used to analyse the data. Results: Participants were primarily female (52.5%), with a broad age distribution and balanced distribution of employees (managerial 42.5% and operational 57.5%). The majority of participants claim that they should expand into the countries where Arabic is spoken. Moreover, hierarchical structures are important, as 71.5% of participants said it is easier to expand in countries with well-defined hierarchies. The study also reveals contradictory inclination against risk-taking cultures (75% disagreeing or strongly disagreeing). This research highlights the significance of following rules (73% agreeing or strongly agreeing), building strong relationships at work (68%), and addressing the cultural inclination towards short-term orientation (69%). Conclusion: These findings provide significant strategic implications for Saudi SMEs to expand internationally. Businesses should adapt their expansion plans in accordance with cultural preferences, highlighting the significance of language, organisational frameworks, and an advanced understanding of risk tolerance. The dynamic landscape of SMEs in Saudi Arabia requires a thorough analysis of the relationship of different cultural dimensions in order to expand their business successfully in international markets.