Over time, due to the increase in the numbers of foreign workers, both the Saudi population and the rate of unemployment among Saudi workers increased sharply so the Saudi government embarked on a process of replacing the foreign workers with Saudi workers. The government was concerned that there were many young people who remained jobless on leaving university whilst, at the same time in Saudi Arabia, there were many foreign nationals who, essentially, were taking jobs meant for the local population. This study aims to investigate, on the one hand, the factors affecting the adoption of Saudization and, on the other hand, to measure the effect of the adoption on the improvement of productivity and other benefits such as improving work opportunities and job security. Previous literature shows that there were four antecedents of the adoption of Saudization. These were: government policies and regulations to encourage adoption; facilitators and incentives of adoption; knowledge-sharing practices between Saudi and non-Saudi workers and the barriers to the adoption of Saudization. In the same line, the consequences of Saudization were increased productivity and other benefits of adoption. A model was developed to conceptualise the causal relationships between the constructs and the interactions amongst these constructs. This study employs mixed methods starting with a quantitative stage which was followed by a qualitative one. A questionnaire was used to collect data from 479 Saudi Arabian construction companies. Thereafter, 16 interviews were conducted with some of these IV companies’ managers. Structural equation modelling produced findings which revealed that, with the exception of barriers which had a negative effect on adoption, all the antecedents of the adoption of Saudization (policies and regulations, facilitators and incentives of adoption and knowledge-sharing practices) had a positive effect on the adoption of Saudization. Meanwhile, the adoption of Saudization had a positive effect on productivity and the other benefits of adoption. This study contributes to the theory since it has revealed a theoretical model which could be used in investigating the determinants and consequences of any localisation programme. It has also contributed to the practices used by the managers of construction companies and policy makers. Through identifying the antecedents and consequences of the adoption of Saudization and in parallel with preparing the required training needs to qualify Saudi’s young people, managers could deploy strategies to gradually replace foreign workers with Saudi workers. Also, this could encourage government bodies and policy makers to implement appropriate measures and incentives to encourage adoption and to reward the pioneer companies. In addition, it could help to finance training programmes and to restructure higher education to prepare qualified graduates who could fill the jobs previously taken by foreigners.

This study examines the career choices of MBA students in Saudi Arabia. Despite the government’s efforts in reducing unemployment by encouraging young Saudis, including managers, to work in the private sector, the number of jobless educated Saudis is on the rise. The public sector seems to be more attractive despite its limited job opportunities. While most career choice theories are concerned with personal choices, this study aims to address the underlying reasons for the preference towards the public sector by investigating the influence of institutional factors (Saudization, Wasta, social status, parental obedience, and religion) and personal motivational factors (intrinsic and extrinsic). Convenience sampling was employed and, overall, 273 Saudi MBA students (157 males and 116 females) responded to self-administered questionnaires. Data was analysed and the research hypotheses were tested by using descriptive statistics, binary logistic regression and independent samples t-tests. Findings showed that Wasta (networks), parental obedience (family), Islamic religion and extrinsic factors were significant predictors of the career choices of Saudi MBA students, with a preference towards work in the public sector. Saudization (i.e. replacing foreign workers with Saudis), social status, and intrinsic factors did not significantly predict the career choices. Cultural cognitive factors (parental obedience and religion) were found to be the strongest predictors within the institutional dimension compared to the normative factors (Wasta and social status) and the regulative factor (Saudization). Female participants considered Wasta, parental obedience and intrinsic motivations more important in their career choices compared to their male counterparts. The findings suggest that the career choices of Saudi MBA students are not determined solely by the individuals’ personal needs and that one should take into account the wider social and cultural factors which are more influential in non-Western contexts such as Saudi Arabia. The theoretical and practical implications of the findings are of interest to researchers, policymakers and employers in public and private organisations in Saudi Arabia. Keywords: Career choice, Saudization, Wasta, religion, intrinsic and extrinsic, Saudi Arabia, MBA students, gender.

The Kingdom of Saudi Arabia (the KSA) has a rapidly growing and diversifying economy that has made significant progress in manufacturing, construction, and agriculture. However, the KSA remains a difficult place for the practice of human resources management (HRM) because of, among other factors, a large non-native workforce and a majority of family-owned firms. These complicating factors mean that, in Saudi firms, HRM practices are adopted in a gradual manner and specifically, training programs are conducted with a view to develop talents and improve worker performance. The study explored the current state of HRM practices in KSA, perception on the training programs conducted and training effectiveness captured as ‘Intent to participate’. The study primarily used qualitative as well as quantitative data collected from family-owned business firms. It helps to gain a deeper understanding of how perceptions on training programs vary across different organisations and demography of the trainees that include age, qualification and experience. A framework predicting intent to participate by the perception on training programs was developed based on the review of extant literature. In order to capture the differences in the perception on training programs across different organisations, age, qualification and experience, Multivariate Analysis of Variance (MANOVA) was used. Results show that perception differed across organisations, age, qualification and experience. In order to predict intent to participate by perception on training programs, multiple regression analysis was used. Results show that perception on identification of training needs, clarity of objectives, training design, behavioural modification and performance improvement predict intent to participate. The researcher also explored perception on training programs in family-owned business firms by conducting an interview with 33 HR managers using a semi-structured interview schedule. The HR managers belong to those companies where the employees hail from. The schedule was developed and standardised using content validity and reliability. The study also gained insights into various areas of training required by the employees in order to achieve their business results. It further provides inputs in terms of HR concerns and suggested HR Interventions to make the management training function better aligned and integrated. The study concludes with a set of recommendations for firms on implementing management training effectively. Ultimately, the study proposes a model of training for family-owned businesses in the KSA.

The development in the Kingdom of Saudi Arabia has been associated with its growing petroleum industry since late 1930s. This development has created a sudden wealth in the country that shaped its labour market as well as its skill formation systems in the years after. It has also, thanks to the government involvement, developed the country’s world class economy and its evolving private sector. However, this involvement has also created a duel labour market in which Saudis expect employment in the government while expatriates are continuously employed in private organizations. Employment in the government was always available to Saudis regardless of their qualifications which are dominated by theoretical literary majors over scientific and technical degrees. In the early days of the country’s development this did not produce major concerns to the government nor to Saudis. However, the country is producing one of the highest growth rates in the world with the majority of its citizens are under the age of 19. Government employment is always limited as the majority of employment opportunities are available in the country’s private sector. Since the late 1980s, this has generated high rates of unemployment among Saudis as government employment reached its peak and as the private sector continues in recruiting millions of cheap expatriates to increase its profits and competitiveness. This is creating an unbalanced labour market structure as well as economic, political and social problems. A number of government initiatives have been introduced to rectify such dilemma. One of which is Saudization to replace the country’s 4.7 million of expatriates recruited mainly (95%) in the private sector with as many qualified Saudis as possible. However, such efforts has not yet produced fruitful results as the private sector is still recruiting expatriates and as skill formation systems are still producing Saudis with incompatible skills, knowledge and attitudes with the private labour market needs. This research assumes that ineffective Saudization in the private sector is not the core problem of the employment process in Saudi Arabia. In fact it is the outcome of the government’s heavy and unnecessary involvement and control over skill formation systems in the Kingdom especially over the General Organization for Technical Education and Vocational Training (GOTEVT) which is the main skill formation provider for the private labour market This involvement imposes the government’s rigid bureaucracy and limited funding on a very dynamic, flexible and self-sufficient economy like the private market in Saudi Arabia that is operating in a very competitive and changeable environment. Investigation of such argument against empirical findings from interviews with a number of government, quasigovernment and private sector managers supports such conclusion. It even illustrates that government involvement and bureaucratization is hindering the implementation of Saudization strategy itself in private organizations. Recommendations are made about changing the role of GOTEVT to create industry-led training organizations to serve and link the outcomes of this skill formation organization to the employment needs of the labour market and to the needs of the economy in general.