Leadership development in Saudi Arabia: A study of policy and practice in large public companies

Abstract

This thesis explores how, why and to what extent large companies in Saudi Arabia engage in leadership development. It is the first in-depth study on the topic and adds a fresh dimension to the literature on leadership development, which until recently has focused mainly on how business leaders are developed in western countries. The research is interpretive and predominantly qualitative, although quantitative data from official and private sector sources are used contextually in analyzing the growth and composition of the corporate and national economies. At the empirical core of the thesis is a set of case studies of leadership development at nine collaborating companies based on 43 semi-structured interviews conducted with CEOs, HR Directors, Heads of Leadership Development, previously developed leaders, and less senior executives undergoing development, and published and private company documents. Data from national policy documents, media reports and 15 semi-structured interviews with government officials and leadership development experts are used to help generalize and triangulate the main findings. The stage is set in chapter 1 of the thesis, in which I put forward my own definitions of leadership and leadership development, state my research objectives and research questions, and outline my theoretical stance. In the literature review that follows (chapter 2), I summarize and critique the literature on leadership development, which is shown to be predominantly western oriented, positivistic, cross-sectional, and quantitative. The evident lacuna suggests the need for research on leadership development that is more historically and culturally sensitive, qualitative, and critical. This is my point of departure, as explained in chapter 3 on methodology, justifying my comparative case-based research design and the decision to develop the cases using data from both interviews with different classes of actors and documentary sources. In chapter 4|, I establish the context for the comparatively recent surge in interest in leadership development in Saudi Arabia with reference to the national plan for socioeconomic development known as Vision 2030 and utilizing interviews conducted with government officials and leadership development experts. The core findings of the thesis are presented in chapters 5, 6 and 7, which deal in turn with leadership development and corporate strategy, the organization and management of leadership development, and leadership development methods and evaluation. I lend perspective in each of these chapters through analysis of various aspects of the national context in which leadership development takes place. The threads of my central argument are drawn together and discussed in the concluding chapter (chapter 8) of the thesis and its limitations considered. The thesis intends to make a substantial original contribution to knowledge. First, it is shown that the policies of the large stock exchange listed companies at the heart of the burgeoning corporate sector are closely aligned with Vision 2030, the Saudi government’s blueprint for economic development. This is explained by the dense network of strong ties that bind the country’s ruling political-business elite, leading top executives, political leaders, and officials to speak with one voice. Top businesses without exception are growth-oriented, optimistic about the future, and committed to developing future leaders. Thus, the main driver for increased interest and investment in leadership development is the shared belief in elite circles that it is a proven means of improving the leadership capabilities needed to boost corporate growth and productivity and sustain economic growth and diversification. Second, it is shown that Saudi companies, with one notable exception, are relative latecomers to leadership development and are playing catch-up with their western counterparts. Leadership development resources and capabilities vary considerably between firms depending on corporate size and age. Across the nine case companies, there are three models of organizational excellence, three making intermediate progress, and three at an early stage of their development journeys. There is an ongoing reliance on western expertise and recognition among companies, business schools and policy makers of the need more rapidly to develop domestic leadership development resources and capabilities. Third, only the largest and oldest companies with distinctive leadership development resources and capabilities deploy the full range of instructional and interactional learning methods, combining them into a wide range of development programmes suitable for personnel at different levels and domains within their organizational hierarchies. Firms with fewer internal resources and capabilities are more reliant on instructional methods and external service provision. Fourth, programme participants uniformly report improvements in personal performance in consequence of leadership development, especially regarding conceptual and relational capabilities, and as a result of incorporating interactional methods such as action learning, coaching and 360-degree feedback in programmes. The companies themselves take an equally positive view of outcomes based mainly on participant feedback, regular performance reviews, 360-degree feedback, and having a strong supply of candidates to fill organizational leadership roles at all levels. It is concluded that leadership development in Saudi Arabia is on an upward track and recommendations are made that if implemented could lend further momentum to the cause.