Abstract: This research examines how entrepreneurial ecosystems shape the relationships among the components of the knowledge economy and the outcomes of sustainable development in Saudi Arabia. Knowledge-Based View, Dynamic Capabilities Theory, and Ecosystem Theory guide the research. Using the Partial Least Squares method of Structural Equation Modeling and survey data of 384 respondents in the Vision 2030 economic regions, ten hypotheses were tested. The findings indicate that the development of the knowledge economy (β = 0.785), government policy (β = 0.246), and investment in R&D (β = 0.563) have a direct, positive impact on economic development, whereas the development of human capital and technological advancements has no impact. The study also determined that entrepreneurial ecosystems, significantly mediate the effects of human capital (β = 0.209, p = 0.043), R&D investment (β = 0.369, p = 0.004), and government policy (β = 0.175, p = 0.080). From the study, the development of entrepreneurial ecosystems is the most important mechanism for coordinating knowledge to achieve sustainable development in transitioning economies.

Keywords: Entrepreneurship Ecosystems, Knowledge Economy, Partial Least Squares Structural Equation Modeling (PLS-SEM), Sustainable Development, Saudi Arabia, Human Capital, R&D Investment, Government Policies, Vision 2030

Pages: 384-401