Abstract
In seeking to achieve economic diversification, Saudi Arabia faces challenges in transitioning from a rentier economy to a knowledge-based economy. In order to achieve this, a number of strategic plans have been adopted by the government to establish a sound knowledge management system that will benefit from foreign investments and the outcome of research and development activities in the country. This paper discusses the issues that hinder the country from reaching the level of economic diversification targeted by previous plans. It then presents the results of quantitative and qualitative analyses to identify the dimensions of governance that can help Saudi Arabia to build an effective knowledge management system as a means to achieve sustainable development. The study's findings highlight the importance of enhancing public sector productivity, fighting corruption, and enabling rule-of-law systems as key factors in creating a quality knowledge management system in Saudi Arabia.
•Saudi Arabia faces challenges in restructuring its economy from a rentier economy to a knowledge-based economy.•Sustainable development plans have yet to be achieved in Saudi Arabia.•The analyses identify the dimensions of governance that contribute in building an effective knowledge management system.•Focus is placed on helping decision-makers maximize the outcomes of the development plans (i.e., Vision 2030).•It’s important enhance public sector productivity and fighting corruption in creating a complex economy in Saudi Arabia.