Enhancing Innovation and Entrepreneurship through HR Practices: A Study on the Tourism Sector in Saudi Arabia in Alignment with Vision 2030

Abstract

This study examines the formats in which Human Resource (HR) practices would be able to enhance innovation and entrepreneurship in Saudi Arabia’s tourism sector in alignment with the country's Vision 2030 goals. Vision 2030 seeks to diversify Saudi Arabia’s economy by promoting sectors like tourism as well as reducing reliance on oil to enhance global competitiveness. The research utilises a qualitative approach in which semi- structured online interviews were conducted with 10 HR managers from various tourism- related organisations to gather data on current HR practices and their effectiveness. Thematic analysis of the transcripts reveals that several HR practices of teamwork, 360- degree feedback, performance-based rewards, and strategic recruitment manifest an essential role in embracing innovation and entrepreneurial thinking within the sector. Despite these positive influences, the study identifies significant challenges hindering the full potential of HR practices. These challenges include limited adoption of advanced technologies, diversity issues, and inadequate training and development programs. The lack of technological integration mainly in recruitment and talent management might prevent organisations from fully capitalising on innovative and entrepreneurial talent. Moreover, diversity gaps and insufficient continuous employee training programs limit the scope of innovation in the tourism sector. The study emphasises the need for strategic HR interventions aligned with Vision 2030 by concentrating on inclusive policies, the adoption of advanced technologies, and continuous employee development. These measures would leverage innovation as well as contribute to building an entrepreneurial environment within the sector. The research provides key recommendations for HR professionals through suggesting improvements in recruitment, training, and performance management systems to support the broader goals of economic diversification. As such, this research offers comprehensive thoughts into the role of HR in driving sustainable growth and innovation in Saudi Arabia’s tourism industry, which would be deemed useful for the country to achieve its Vision 2030 objectives.