Determinants of SME growth: an empirical study in Saudi Arabia

Abstract

Purpose

This study aims to examine the determinants of the growth of small- and medium-sized enterprises (SMEs) in the Kingdom of Saudi Arabia. The resource-based view theory is adopted in the analysis of the study.

Design/methodology/approach

The descriptive and multivariate regression analysis was used to analyze the data. A stratified sampling technique is adopted with a sample size of 119 managers from SMEs. There are variables delineated from theories (human capital, social capital, strategy and organization), which are associated with the firm’s growth that include; the size of the firm, firm age, manager’s education, training, experience, financing and network relationship.

Findings

The results found that the size of the firm, the experience of the manager, training, financing and the network relationship have a significant relationship with the firm’s growth. However, other variables such as the education and firm’s age do not have a significant relationship with the firm’s growth.

Originality/value

This study could be considered as an exposure to the SMEs in Saudi Arabia on the specific factors by the owner–managers who intend to develop their business.

Citation

Rafiki, A. (2020), "Determinants of SME growth: an empirical study in Saudi Arabia", International Journal of Organizational Analysis, Vol. 28 No. 1, pp. 205-225. https://doi.org/10.1108/IJOA-02-2019-1665