Cultural Catalysts, Technological Tools, And Economic Factors: An Approach To Adopting Circular Economy Practices In Saudi Arabian Smes

Abstract

This inquiry delves into examining the analysis of the incorporation of circular economy practices within small and medium enterprises (SMEs) in Saudi Arabia, concentrating on the influence of technological advancement, cultural dynamics, and economic aspects, along with the moderating function of leadership encouragement. The primary aim is to pinpoint the critical factors shaping the integration of sustainable practices in the SME sector and to comprehend the interplay of these factors within the context of Saudi Arabia's Vision 2030. A structured survey was dispersed among 222 SME leaders to collect information on their encounters and perspectives regarding embracing circular economy practices. The evaluation employed Covariance-Based Structural Equation Modeling (CB-SEM) for data analysis, a technique selected for its efficacy in comprehending intricate variable connections and model validation. The outcomes demonstrate that technological innovation significantly bolsters adopting circular economy practices, while cultural dynamics and economic factors also wield substantial influence. Leadership support emerged as a pivotal mediator, amplifying the beneficial effects of these factors. The study underscores the collaborative impact of leadership and technology as notably potent, proposing that the strategic assimilation of technology into business operations is imperative for surmounting cultural and economic obstacles. Drawing from these observations, the study advocates for SMEs to fortify their leadership capabilities to nurture an environment of innovation and sustainability. It suggests training initiatives centered on sustainability management and strategic decisionmaking to empower leaders to propel the efficient adoption of circular economy practices.