Exploring Strategic Choices and Renewable Energy Adoption in Saudi Arabian SMEs: The Mediating Role of Environmental Consciousness and Stakeholder Engagement

Abstract

This conceptual paper investigates the influence of strategic choices on the adoption of renewable energy by small and medium-sized enterprises (SMEs) in Saudi Arabia, with an emphasis on the mediating roles of environmental consciousness and stakeholder engagement. Against the backdrop of Vision 2030, renewable energy adoption is not just a national priority but a critical element in the global shift toward sustainability and economic diversification. In Saudi Arabia, where SMEs are pivotal contributors to the economy, their participation in this energy transition is paramount. However, research examining the interplay between strategic decision-making and renewable energy adoption in this sector remains sparse. This study proposes a conceptual framework to address the gap, exploring how strategic choices shape the integration of renewable energy and the roles that environmental consciousness and stakeholder engagement play in mediating this relationship. The framework integrates proactive entrepreneurial behavior, green innovation, and strategic leadership as key drivers of sustainability. By doing so, it offers policymakers, business leaders, and sustainability advocates practical insights into how SMEs can navigate the challenges of renewable energy adoption and leverage strategic choices for long-term competitiveness and environmental responsibility. The proposed framework also provides a foundation for future empirical research, highlighting the critical role of integrated strategies in achieving Saudi Arabia's sustainability goals under Vision 2030.