UNLEASHING SUSTAINABLE ENTREPRENEURSHIP: THE NEXUS OF CIRCULAR ECONOMY, SUSTAINABLE TOURISM, AND DIGITALIZATION: EVIDENCE FROM SAUDI ARABIA

Abstract

Abstract This study investigates the effects of the circular economy and sustainable tourism on sustainable entrepreneurship in Saudi Arabia, with digitalisation examined as a moderating factor. A quantitative research design was employed, and data were collected from directors, managers, and employees of small and medium-sized enterprises (SMEs) operating in the tourism and waste recycling sectors. A structured questionnaire, developed through Google Forms, was distributed via email and LinkedIn professional networks. In total, 407 valid responses were obtained and analysed using SmartPLS 4.0, following a two-stage procedure comprising measurement model assessment and structural model evaluation. The findings reveal that both the circular economy and sustainable tourism exert significant positive effects on sustainable entrepreneurship. Moreover, digitalisation strengthens these relationships, confirming its important moderating role. The study contributes to the literature by developing and empirically testing an integrated model of sustainable entrepreneurship in the Saudi Arabian context. Its findings are also aligned with Saudi Vision 2030 and the Sustainable Development Goals, particularly SDG 8, which focuses on decent work and economic growth, and SDG 12, which promotes responsible consumption and production. In addition, the study offers practical and policy implications for fostering sustainable entrepreneurship, digital transformation, and environmentally responsible business practices in emerging economies.