How Saudi SMEs can leverage big data to drive growth and competitiveness

The study’s findings suggest that SMEs prioritizing secure, adaptable, and user-friendly platforms will be better positioned to implement BDA successfully. For technology providers, tailoring solutions to meet these specific SME concerns could accelerate adoption across the Saudi manufacturing sector.

Researchers have proposed a comprehensive framework to help Saudi Arabia’s manufacturing small and medium enterprises (SMEs) adopt big data analytics (BDA) to strengthen decision-making and competitiveness. Their paper, “Empowering Saudi Manufacturing Small and Medium Enterprises: A Framework for Big Data Analytics Adoption and Its Impact on Decision-Making”, was published in SAGE Open.

The study highlights how BDA adoption can unlock more efficient, data-driven strategies for SMEs but also underscores barriers linked to technology, organizational readiness, and policy environments. Drawing from the Diffusion of Innovation (DOI) theory and the Technology–Organization–Environment (TOE) model, the authors map out the specific drivers and constraints affecting BDA adoption in Saudi Arabia’s industrial ecosystem.

What technological factors drive or hinder BDA adoption?

The research identifies technological factors as the most immediate influences on whether SMEs are willing to embrace BDA. These include security, compatibility, complexity, and adaptability. Among them, security emerged as the single strongest determinant, reflecting widespread concerns over data protection in manufacturing industries where breaches can compromise both operations and intellectual property.

Compatibility also plays a critical role. Many SMEs struggle to align new big data tools with existing legacy systems, creating resistance to adoption. Complexity remains another barrier, as SMEs often lack advanced in-house expertise to handle the scale and sophistication of BDA platforms. On the positive side, adaptability of tools, how well they can evolve alongside business needs, was seen as a significant enabler of adoption.

The study’s findings suggest that SMEs prioritizing secure, adaptable, and user-friendly platforms will be better positioned to implement BDA successfully. For technology providers, tailoring solutions to meet these specific SME concerns could accelerate adoption across the Saudi manufacturing sector.

How do organizational and environmental factors influence adoption?

The framework highlights organizational readiness as a major factor in adoption. The study shows that top management support, IT infrastructure, employee training, and perceived relative advantage all strongly affect whether SMEs move forward with BDA initiatives. Among these, training and IT infrastructure stand out as the most decisive elements. Firms with strong digital backbones and well-trained staff are more likely to implement analytics successfully and translate insights into better decision-making.

The environmental context is equally critical. The researchers point to government IT policies, digital transformation tools, workforce competency, and collaborative networks as significant external factors. Government policy was singled out as a particularly influential enabler, with Saudi Arabia’s Vision 2030 reforms providing momentum for SMEs to modernize. Access to digital transformation tools, such as subsidized cloud infrastructure and shared innovation platforms, further accelerates readiness.

Collaboration with external partners, including universities and larger corporations, can also help SMEs overcome capability gaps. The framework suggests that SMEs embedded in strong collaborative networks are more likely to succeed in leveraging BDA for competitive advantage.

What is the impact of BDA on decision-making in SMEs?

The study tested its framework by surveying 384 SME employees and applying Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results showed that BDA adoption explains 29.3% of the variance in decision-making quality. This finding underscores that while BDA is a powerful driver of data-informed strategy, it must be complemented by organizational and environmental enablers to achieve full impact.

The practical benefits of adoption are clear: improved operational efficiency, more accurate forecasting, better resource allocation, and faster responsiveness to market shifts. However, the relatively modest percentage of explained variance indicates that decision-making in SMEs still relies on other factors, such as managerial experience, market conditions, and regulatory dynamics.

To sum up, BDA adoption cannot be seen in isolation. For SMEs to achieve meaningful digital transformation, they must invest in workforce training, upgrade IT infrastructure, and engage with supportive government policies. The framework provided by the researchers offers a roadmap for aligning these elements to maximize the payoff from BDA.