Assessing the Impact of Digitalization Practices on the Saudi SMEs' Strategic Management Implementation

Abstract

A tech-savvy population and increased internet penetration have driven a substantial growth in Saudi Arabia's e-commerce sector in recent years. Adapting business strategies to the digital era requires a reevaluation of organizational management strategies. Hence, the purpose of this study is to examine the role played by the e-commerce in shaping the strategic management with a specific focus on Saudi Arabian Small and Medium Enterprises (SMEs). In addition, this study also explores the factors that moderate the relationship between the strategic management and e-commerce. To serve these purposes, the paper conducts a quantitative analysis of selected Saudi Arabian e-commerce SMEs to explore how they have adapted their organizational structures and cultures to fit the environment, identifies the challenges they face in managing their organizational behavior, and examines the strategies employed by successful e-commerce businesses in the Kingdom. The findings of this study confirms the strong impact of e-commerce on the strategic management of the selected SMEs. Most of the participatory SMEs asserted that e-commerce has brought drastic changes to their business plans and strategies. Similarly, the study has also indicated the major factors as mediators between e-commerce and strategic management. As Saudi Arabian companies navigate the digital frontier, this study contributes to the growing literature in e-commerce and business strategies. The future studies may focus on comparing the Saudi Arabian context with other developed or developing countries and may bring some new insights in the context of managing business strategies in response to artificial intelligence (AI).