Unlocking Sustainable Economic Development in Saudi Arabia through the Coffee Industry

Abstract

Conducting business nowadays has become much more challenging. Sustainability is a crucial goal for all industries, including the coffee sector, which has emerged as a robust trend in the GCC (Gulf Cooperation Council), establishing Saudi Arabia as one of the pioneers in developing specialty coffee in the Gulf region. Hence, in an attempt to reveal the determinants of sustainability, this study examined the effect of collective individual capabilities (i.e., commitments, communication, connections, and coordination) on entrepreneurial resilience and the subsequent effect on economic, social, and environmental firm performance. This study used a cross-sectional design to collect quantitative data from 213 respondents using non-probability-based convenient sampling. Data were analyzed using SEM-PLS. Findings revealed that commitment has a significant positive effect on entrepreneurial resilience. On the other hand, resilience showed significant positive effects on the economic, social, and environmental performance of coffee shops in Saudi Arabia. Results further confirm a significant mediating effect of entrepreneurial resilience between commitments and economic, social, and environmental performance. Several key insights and policy implications have been drawn from the findings.