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Using the PLS-SEM Model to Measure the Impact of the Knowledge Economy on Sustainable Development in the Al-Jouf Region of Saudi Arabia

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  • Naeimah Fahad S. Almawishir

    (College of Business, Jouf University, Sakaka 72388, Saudi Arabia)

  • Houcine Benlaria

    (College of Business, Jouf University, Sakaka 72388, Saudi Arabia)

Abstract

Saudi Arabia has been increasingly using the knowledge economy, which employs digital technologies, to boost the country’s prosperity and growth. To measure the impact of the knowledge economy on sustainable development in the Al-Jouf region, in this research, a survey was utilized as the principal tool for gathering data from employees who occupy administrative positions in both public and private organizations in the region. The collected data were analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) methodology. The results indicate that information and communication technology (ICT) is the most important dimension in both public and private institutions, while the dimension of innovation, research, and development ranks last. Although ICT is significantly applied, there are shortcomings in other aspects of the knowledge economy in both public and private institutions. This study recommends developing the investment environment through economic incentives and institutional systems to make it more attractive to establish entrepreneurial activities. Additionally, it suggests the need to fund applied research and development and leverage the outcomes to develop innovative and entrepreneurial activities. Overall, the knowledge economy has a positive impact on sustainable development in the Al-Jouf region.

Suggested Citation

  • Naeimah Fahad S. Almawishir & Houcine Benlaria, 2023. "Using the PLS-SEM Model to Measure the Impact of the Knowledge Economy on Sustainable Development in the Al-Jouf Region of Saudi Arabia," Sustainability, MDPI, vol. 15(8), pages 1-23, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6446-:d:1120249
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