IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i15p6949-d1714017.html
   My bibliography  Save this article

Breaking Barriers: Financial and Operational Strategies for Direct Operations in Saudi Arabia

Author

Listed:
  • Samar S. Alharbi

    (College of Administrations and Finance, Saudi Electronic University, Dist ‘Girls’ Colleges Campus, Ar Rayyan, Dammam 32256, Saudi Arabia)

Abstract

This study investigates the key factors enabling the transition from distributor-based models to direct operations among companies in Saudi Arabia, in alignment with Vision 2030’s goals of economic diversification and operational efficiency. The study is based on quantitative data collected from 528 questionnaire responses representing diverse industries and professional roles. The results highlight that technological integration and regulatory negotiation are essential for a smooth transition to direct operations. Furthermore, environmental sustainability practices and stakeholder involvement significantly affect the adoption of this transition, often acting as moderators and mediators. The findings emphasize the importance of aligning operational strategies with national development goals to enhance efficiency and resilience. This study also examines how transitioning to direct operations impacts financial efficiency and contributes to improved financial performance and sustainability. This study provides practical recommendations for policymakers and business leaders to address operational challenges and improve their financial and operational performance.

Suggested Citation

  • Samar S. Alharbi, 2025. "Breaking Barriers: Financial and Operational Strategies for Direct Operations in Saudi Arabia," Sustainability, MDPI, vol. 17(15), pages 1-24, July.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:6949-:d:1714017
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/15/6949/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/15/6949/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sarvnaz Baradarani & Hasan Kilic, 2018. "Service innovation in the hotel industry: culture, behavior, performance," The Service Industries Journal, Taylor & Francis Journals, vol. 38(13-14), pages 897-924, October.
    2. Lei Guo & Luying Xu, 2021. "The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    3. Markus C. Becker & Nathalie Lazaric & Richard R. Nelson & Sidney G. Winter, 2005. "Applying organizational routines in understanding organizational change," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(5), pages 775-791, October.
    4. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    5. Samar S. Alharbi, 2025. "Perceived financial and operational impact of E-HRM in Saudi Arabia," Edelweiss Applied Science and Technology, Learning Gate, vol. 9(3), pages 328-344.
    6. Markus C. Becker, 2004. "Organizational routines: a review of the literature," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(4), pages 643-678, August.
    7. Asad Asadzadeh & Amir Reza Khavarian-Garmsir & Ayyoob Sharifi & Pourya Salehi & Theo Kötter, 2022. "Transformative Resilience: An Overview of Its Structure, Evolution, and Trends," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    8. Martha S. Feldman, 2000. "Organizational Routines as a Source of Continuous Change," Organization Science, INFORMS, vol. 11(6), pages 611-629, December.
    9. Markus C. Becker, 2004. "Organizational routines : a review of the literature," Post-Print hal-00279010, HAL.
    10. Al-Maamary, Hilal M.S. & Kazem, Hussein A. & Chaichan, Miqdam T., 2017. "Climate change: The game changer in the Gulf Cooperation Council Region," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 555-576.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gopesh Anand & John Gray & Enno Siemsen, 2012. "Decay, Shock, and Renewal: Operational Routines and Process Entropy in the Pharmaceutical Industry," Organization Science, INFORMS, vol. 23(6), pages 1700-1716, December.
    2. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    3. Giada Baldessarelli & Nathalie Lazaric & Michele Pezzoni, 2022. "Organizational routines: Evolution in the research landscape of two core communities," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1119-1154, September.
    4. Guha, Mahua & Das, Gopal, 2017. "Routine contraction in good times: An example of a typical prototype development routine," Journal of Business Research, Elsevier, vol. 70(C), pages 145-152.
    5. Feim M. Blakçori, 2014. "The Role of Formal Routines in Organizational Innovation," International Journal of Business and Social Research, LAR Center Press, vol. 4(2), pages 56-70, February.
    6. Scott F. Turner & Violina Rindova, 2012. "A Balancing Act: How Organizations Pursue Consistency in Routine Functioning in the Face of Ongoing Change," Organization Science, INFORMS, vol. 23(1), pages 24-46, February.
    7. Guo, Jingjing & Guo, Bin & Zhou, Jianghua & Wu, Xiaobo, 2020. "How does the ambidexterity of technological learning routine affect firm innovation performance within industrial clusters? The moderating effects of knowledge attributes," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    8. Dutta, Dev K. & Malhotra, Shavin & Zhu, PengCheng, 2016. "Internationalization process, impact of slack resources, and role of the CEO: The duality of structure and agency in evolution of cross-border acquisition decisions," Journal of World Business, Elsevier, vol. 51(2), pages 212-225.
    9. Feim M. Blakçori, 2014. "The Role of Formal Routines in Organizational Innovation," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(2), pages 56-70, February.
    10. Jeremy Aroles & Christine McLean, 2016. "Rethinking Stability and Change in the Study of Organizational Routines: Difference and Repetition in a Newspaper-Printing Factory," Organization Science, INFORMS, vol. 27(3), pages 535-550, June.
    11. Rouslan Koumakhov & Adel Daoud, 2017. "Routine and reflexivity: Simonian cognitivism vs practice approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 727-743.
    12. Neil M Kay, 2018. "We need to talk: opposing narratives and conflicting perspectives in the conversation on routines," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 943-956.
    13. Becker, Markus C. & Zirpoli, Francesco, 2008. "Applying organizational routines in analyzing the behavior of organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 66(1), pages 128-148, April.
    14. Gilstrap, J. Bruce & Hart, Timothy A., 2020. "How employee behaviors effect organizational change and stability," Journal of Business Research, Elsevier, vol. 109(C), pages 120-131.
    15. Bénédicte Reynaud, 2005. "The void at the heart of rules: Routines in the context of rule-following," PSE Working Papers halshs-00590855, HAL.
    16. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    17. Schmidt, Heiko M. & Santamaria-Alvarez, Sandra Milena, 2022. "Routines in International Business: A semi-systematic review of the concept," Journal of International Management, Elsevier, vol. 28(2).
    18. Guido Cozzi & Paolo Giordani, 2011. "Ambiguity attitude, R&D investments and economic growth," Journal of Evolutionary Economics, Springer, vol. 21(2), pages 303-319, May.
    19. Scott Sonenshein, 2016. "Routines and Creativity: From Dualism to Duality," Organization Science, INFORMS, vol. 27(3), pages 739-758, June.
    20. Jiatao Li & Rajiv Kozhikode, 2008. "Knowledge management and innovation strategy: The challenge for latecomers in emerging economies," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 429-450, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:6949-:d:1714017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.