




































AGORA International Journal of Economical Sciences, http://univagora.ro/jour/index.php/aijes 

ISSN 2067-3310, E-ISSN 2067-7669 

Vol. 18, No. 1 (2024), pp. 1-17 

 

1 

 

THE IMPACT OF PRODUCT INNOVATION ON FEMALE 

ENTREPRENEURSHIP SUCCESS: A CASE OF SAUDI ARABIA 

 

S. AHMAD 

 

Shabir Ahmad  

College of Business, Al Khobar, Al Yammah University, Kingdom of Saudi Arabia 

https://orcid.org/0000-0002-0523-6536, E-mail: s_ahmad@yu.edu.sa    

 

Abstract: Recent reforms in Saudi Arabia granted empowerment to women, opening 

new entrepreneurial avenues for them. This study aims to assess the influence of product 

innovation on the success of female entrepreneurs in Saudi Arabia. Employing a quantitative 

approach, data was collected through a survey questionnaire. The primary data set included 

responses from 256 Saudi female entrepreneurs. SmartPLS was utilized for analysis, employing 

the PLS-SEM statistical technique. The results revealed a positive overall effect of product 

innovation on female entrepreneurs and their intentions. The study offers practical insights for 

female entrepreneurs and the Saudi government to address challenges faced by Saudi women. 

Recommendations include the formulation of policies that provide sustained support for women 

entrepreneurs. Additionally, the study suggests potential avenues for future research in this 

domain. 

Keywords: Product Innovation, Innovation Creed, Innovation Conviction, Innovation 

Mindset, Female Entrepreneurship, Saudi Arabia 

 

INTRODUCTION 

In the current business environment, the entrepreneurial population of female ventures 

is growing rapidly, which holds huge potential for making a major contribution towards wealth 

creation, innovation, and employment generation around the world (Demartini, 2018). 

Innovative businesses have created prominent opportunities for female entrepreneurs to 

enhance their competitiveness. Because trends in female entrepreneurship are growing around 

the world, the representation of female entrepreneurs is still quite low in comparison with male 

entrepreneurs. As mentioned in the study of Al-Kwifi et al. (2020), the unequal status of women 

compared to men in most developing countries is a major factor that restricts women from 

carrying out their entrepreneurial activities. Particularly in the context of the Middle Eastern 

region, unequal status for women is regarded as one of the major challenges to women's 

entrepreneurship. However, most countries have now recognized the important role of women 

entrepreneurs in economic well-being, so they are making efforts to harness equality and open 

up the opportunity for women to practice their entrepreneurial activities (Ahmad & Bajwa, 

2022; Ahmad & Bajwa, 2021). 

Saudi Arabia is one of the countries recently acknowledging the importance of 

prioritizing entrepreneurship and f encouraging women's involvement in these endeavors to 

realize economic prosperity and growth (Bereczki, 2015; Danish & Smith, 2012). Female 

entrepreneurs, similar to their male counterparts, are now considered catalysts for innovation 

https://orcid.org/0000-0002-0523-6536
mailto:s_ahmad@yu.edu.sa


THE IMPACT OF PRODUCT INNOVATION ON FEMALE ENTREPRENEURSHIP 

SUCCESS: A CASE OF SAUDI ARABIA 

 2 

and job creation. The government's efforts to transform women's status in society by creating 

different opportunities for them (Welsh et al., 2014). However, despite different reforms and 

initiatives from the KSA government, women entrepreneurs are still faced with an apparent 

form of discrimination when taking part in entrepreneurial activities. According to (Bulsara et 

al., 2014), innovation works as an instrument or catalyst for entrepreneurship to achieve its 

main goals; thus, an effective entrepreneurial society requires continuous and steady 

development of innovation and entrepreneurship. Similarly, Peter Ducker, one of the most 

prominent authors and educators of management studies, has stated that innovation is a 

particular feature of entrepreneurship, that bestows resources with a new capacity to generate 

wealth (Agarwal, 2019). As per (Dastourian et al., 2017), in the evolution from an industrial 

society to a knowledge and information society, the component of innovation and product 

development plays a crucial role in providing a distinctive advantage to entrepreneurs. While 

innovation positively influences different entrepreneurial activities, it eases up the attainment 

of resources, and the appropriate application of new knowledge and ideas tends to reduce risk, 

improve learning levels, and simplify different entrepreneurial activities. 

Though research investigating the impact of product development on entrepreneurship 

in general is ample (Lee et al., 2016; Nambisan et al., 2018; Ressin, 2022), evidence of the 

impact of product innovation on women's entrepreneurship is scarce. Women's empowerment 

remained one of the understudied research areas in Saudi Arabia. Recent reforms empowering 

Saudi women across diversified domains, it attracted researchers' attention in recent years 

(Alotaibi, 2020). However, women's entrepreneurship is a relatively less explored area. 

Particularly, its relationship with product innovation and how it is influenced by that is almost 

unexplored in Saudi Arabia. Though evidence from other geographical contexts has generally 

provided a positive relationship, both variables have been studied from different perspectives, 

as discussed in the literature review. By addressing prevailing gaps, this study aims to 

contribute to the body of knowledge in the following ways: 

Firstly, while previous studies mainly focused on product development, this research 

shifts the focus to product innovation. product innovation has been conceptualized with three 

dimensions: innovation convention, innovation mindset, and innovation creed. 

Secondly, current studies investigate the role of product innovation in entrepreneurship 

in general, whereas this study primarily focuses on female entrepreneurship. Female 

entrepreneurship is conceived with three dimensions: perseverance, a need for achievement, 

and risk-taking behavior. 

Thirdly, this study provides empirical evidence of women's entrepreneurship from 

Saudi Arabia, where women have recently been empowered. Therefore, the body of knowledge 

on this novel area is very limited. 

Lastly, this study contributes to the global body of knowledge with relatively novel 

insights on how innovation conventions, innovation creeds, and innovation mindsets can lead 

women to entrepreneurial success. The expected findings hold important implications for Saudi 

female entrepreneurs, the government, society, and future researchers, as discussed in the end. 

 



Shabir AHMAD 

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LITERATURE REVIEW 

Entrepreneurship and Female Entrepreneurs' Success 

The term ‘entrepreneurship’ refers to the process of establishing a new business venture 

by bearing all risks associated with it to generate a substantial profit (Ramadani et al., 2015; 

Syed et al., 2019). Radovic-Markovic and Salamzadeh (2012) defined entrepreneurship as the 

process of creating new value by entrepreneurs through the investment of their financial 

resources, time, and efforts to attain greater monetary profits and success in the corporate 

sector. However, due to the lack of a universal definition of entrepreneurship, numerous 

definitions highlight the different perspectives (Burns, 2016; Drucker, 2014).  

However, a successful entrepreneur needs analytical thinking, expertise, creativity, and 

competitiveness that enable the individual to take the lead in the market regardless of their 

gender, identity, and background (Goby & Erogul, 2011; Terjesen & Lloyd, 2015). In the 

current era, the world is moving towards modernization, where males and females are at an 

equal pace with each other to attain success and take the lead in a professional environment. In 

this regard, female entrepreneurs are those women who intend to and possess the potential to 

start their business venture either based on innovation (Danish & Smith, 2012). According to 

Arab News (2017), there were 37% of female entrepreneurs in Saudi Arabia in 2017, compared 

to 35% in 2016. 

Female entrepreneurship success refers to the ability of a woman to successfully initiate 

and manage an entrepreneurial startup that shows financial resilience, survives, and sustains in 

the long run. A successful female entrepreneur possesses a clear vision for the business and the 

resilience to overcome obstacles along the way. They exhibit perseverance to pursue their goals 

despite facing gender biases and systemic barriers in society. In addition, they are high-risk 

takers and possess a higher need for achievement. These components are elaborated on in the 

following sections. 

 

Perseverance 

The term perseverance refers to the phenomenon of the persistence of an individual to 

achieve a certain goal by remaining adhered to the plan (Manzanera-Román & Brändle, 2016). 

Noguera et al. (2015) stated that perseverance plays an imperative role in successful 

entrepreneurship because it motivates individuals to keep trying and remain focused on goals 

by overcoming all the obstacles that stand in their way. In the competitive era, being a 

successful business leader in a dynamic market is highly difficult, and most people tend to give 

up in the initial stage without striving further for success (Radovic-Markovic & Salamzadeh, 

2012). For female entrepreneurs, perseverance is important because social obstacles and a lack 

of support greatly hinder their journey to becoming successful entrepreneurs. Al-Kwifi et al. 

(2020) implied that the culture of the Kingdom of Saudi Arabia (KSA) specifies that females 

of the country should head towards running the business and refrain from communicating with 

the opposite gender due to societal, religious, and cultural norms. Similarly, Meyer and Mostert 

(2016) asserted that the structure of society and the male dominance concept confine females 

to the home and create a barrier for women who intend to work professionally. 

 



THE IMPACT OF PRODUCT INNOVATION ON FEMALE ENTREPRENEURSHIP 

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Need for Achievement 

The concept of a need for achievement is defined as the inner desire and source of 

motivation of the individual to achieve excellence and take the lead in a competitive 

environment. Tanveer et al. (2013) asserted that the need for achievement can be considered 

the motivating factor for entrepreneurs that urges them to stand firm against all barriers and fill 

the market void. However, Poggesi et al. (2016) argued that the need for achievement reflects 

the competitive behavior of an individual that motivates them to move in a smooth forward 

direction. McClelland's need for achievement theory states that a person motivated by a high 

achievement orientation does not get easily influenced by monetary benefits or other external 

factors (Khurana & JOSHI, 2017). Similarly, Lai et al. (2010) advocated the need for 

achievement as the principle of motivation and consistency in attaining success. The 

phenomenon of the need for achievement can be different for both male and female 

entrepreneurs, depending on their requirements (Barba-Sanchez & Atienza-Sahuquillo, 2011). 

Furthermore, for female entrepreneurs, the need for achievement can be related to competing 

with the main players in the market at an equal level, standing strong in a dynamic environment, 

and making an impact on different segments of the state's economy (Popescu et al., 2015). 

 

Risk-Taking Behaviour 

In entrepreneurship, risk and uncertainties are major factors that are directly associated 

with the new business idea or venture because competition and a dynamic environment can 

impact the particular business negatively or positively (Yordanova & Alexandrova‐

Boshnakova, 2011). It is essential for entrepreneurs to always prepare themselves to bear any 

sort of risk in newly established businesses because, without taking the risk, they cannot 

accelerate in a forward direction (Bolton & Lane, 2012). Eroglu and Picak (2011) defined risk 

as the attribute that can cause loss or failure in certain ventures and drag the organization into 

crises. Makhbul and Hasun (2011) implied that it is evident that where the rate of profits and 

success is greater, the number of risks associated with it is also high. The risk-taking behavior 

reflects the potential, willingness, and persistence of entrepreneurs to achieve new heights and 

set unique milestones (Sánchez, 2011). According to Makhbul and Hasun (2011), the risk-

taking behavior of female entrepreneurs depends on their general attitude, and they depend on 

a substantial amount of strategic planning before adopting any risk associated with their 

business venture. 

 

Product Innovation 

The term innovation has multiple definitions and concepts that vary according to the 

perception and knowledge of every individual (Bucherer et al., 2012).  De Medeiros et al. 

(2014) defined innovation by highlighting that it is the process of presenting a new creative 

idea regarding the establishment of certain products or services that can help create a 

competitive advantage and a firm position. Furthermore, Evanschitzky et al. (2012) advocated 

that innovative ideas can help fill the void in the market and can be generated from experience, 

problem-solving skills, and the creative thinking process. However, Hughes et al. (2012) 

advocated the concept of innovation by stating that it involves making new changes and 

incorporating creativity into existing products or services. product innovation refers to the 

development and establishment of a product by introducing a product that does not exist in the 



Shabir AHMAD 

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market already or possesses some creative feature that adds to the uniqueness of the product 

and encourages the consumers to purchase that certain product (Berends et al., 2014; Galanaki 

& Papalexandris, 2017; Zivanovic et al., 2023). In a complex business environment, innovation 

helps entrepreneurs compete with key players in the market, establish their position, and 

effectively attract consumers' attention toward new ventures (Lai et al., 2010). However, the 

likelihood of failure of a certain innovative product is always high because of the resistance of 

the target audience to new changes (Slater et al., 2014). 

 

Innovation Conviction 

The term innovation conviction (ICN) refers to the attitude towards commitments and 

achieving a certain goal (Lai et al., 2010). Every entrepreneur tends to establish their business 

venture with some mission and vision statement they intend to address in the future (Waychal 

et al., 2011). However, over time, the goals do not align with the actual practices and activities 

of the organization. Some entrepreneurs lack the ability to deliver specified commitments due 

to the absence of determination and motivation (McAdam et al., 2014). Conviction is necessary 

to transform the innovative idea into a real-world entity, and it keeps the entrepreneurs 

motivated toward their goal of achieving success through an innovative idea (Romero & 

Martínez-Román, 2012). Motivation and determination are two major components that act as 

the driving source for innovation conviction because the sole attitude of the entrepreneur 

toward innovation cannot bring success if motivation is absent (Waychal et al., 2011). 

Furthermore, a lack of innovation conviction among entrepreneurs also affects the behavior of 

their employees in the workplace, because when they experience the non-alignment of the 

mission statement of the organization and business activities, negative perceptions are created 

for their employer (Popescu et al., 2015). 

 

Innovation Mindset 

The innovation mindset (IMT) reflects the attitude and approach of entrepreneurs 

towards innovation and new business ventures. In general, there are two different types of 

people: first, they always seek to follow the conventional pursuit and refrain from innovation 

(Abu-Saifan, 2012; Lai et al., 2010). Whereas, some individuals are flexible towards new 

changes and innovation. (Gundogdu, 2012) advocated that for the success of an organization 

that follows the innovation pursuit, its employees must possess a positive mindset and be 

flexible enough to embrace it.  

Similarly, (Secundo et al., 2015) claimed that if entrepreneurs manage to change the 

attitude of the employees towards the adoption of innovation in a positive way, then they are 

quite close to success because, in dynamic and competitive environments, creativity and 

uniqueness can help them to accelerate smoothly. However, Israel and Johnmark (2014) 

specified that strategic changes and uniqueness in product or service characteristics are 

required to encourage and motivate employees towards innovation in a positive manner. If 

entrepreneurs tend to follow conventional pursuits from scratch and intend to transform them 

into an innovation mindset, suddenly they might need to face resistance from their employees 

(Durkin & Gunn, 2016). 

 



THE IMPACT OF PRODUCT INNOVATION ON FEMALE ENTREPRENEURSHIP 

SUCCESS: A CASE OF SAUDI ARABIA 

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Innovation Creed 

The phenomenon of innovation creed (ICD) is closely related to the concept of 

innovation conviction because ICD reflects the beliefs of entrepreneurs that are derived from 

their attitudes (Lai et al., 2010). If entrepreneurs possess a strong belief in their innovative 

ideas, it would work as a source of motivation for them to pursue and transform their innovative 

ideas into a successful reality (Schaltegger & Wagner, 2011). Rettberg (2016) asserted that 

personal beliefs can help entrepreneurs withstand their innovation convictions firmly and 

struggle to achieve success through continuous motivation. The study accumulated by 

Evanschitzky et al. (2012) highlighted that a lack of belief and confidence in an innovative idea 

can demotivate entrepreneurs to step back due to uncertainties and a lack of motivation. 

 

Impact of Product Innovation on the Success of Female Entrepreneurship 

Entrepreneurs do not solely depend on innovation to seek opportunities and achieve 

success; sometimes innovation is derived from the need for a certain product or service in the 

market (Brush & Cooper, 2012). Innovation is a significant prospect for successful 

entrepreneurship. The phenomenon of successful entrepreneurship can be different for both 

males and females because obstacles and barriers in their way of success are also different, 

which leads to a difference in attitude, mindset, and belief of the individual towards innovation 

(Noguera et al., 2015). For female entrepreneurs, cultural, financial, and societal pressures are 

major barriers that hinder their way of attaining success, specifically in Middle Eastern 

countries such as KSA  (Danish & Smith, 2012). According to the study accumulated by Al-

Kwifi et al. (2020), in KSA, despite the numerous initiatives of the government, female 

entrepreneurs have to face strong setbacks and discrimination when they struggle to contribute 

to the economic development of the country. However, innovation conviction, which is their 

firm belief in their innovative idea, and a positive attitude can help them remain motivated 

towards the achievement of success (Valdivia, 2015). Subsequently, the study assembled by 

(Lai et al., 2010) asserted that for women entrepreneurs, continuous motivation is necessary to 

remain intact with their goal and lessen the influence of external pressure on them. This 

discussion led us to the following hypotheses: 

H1: Innovation convention positively impacts female entrepreneurship success. 

H1a: Innovation conviction positively impacts the need for achievement. 

H1b: Innovation conviction positively impacts perseverance. 

H1c: Innovation conviction positively impacts risk-taking behavior. 

H2: Innovation mindset positively impacts female entrepreneurship success.  

H2a: Innovation mindset positively impacts the need for achievement. 

H2b: Innovation mindset positively impacts perseverance. 

H2c: Innovation mindset positively impacts risk-taking behavior. 

H3: Innovation creed positively impacts female entrepreneurship success.  

H3a: Innovation creed positively impacts the need for achievement. 

H3b: Innovation creed positively impacts perseverance. 

H3c: Innovation creed positively impacts risk-taking behavior. 

Based on these hypotheses, the conceptual framework of the study is presented in 

Figure 1. The framework highlights innovation convention, innovation mindset, and innovation 

creed (three facets of product innovation) as independent variables that positively influence 



Shabir AHMAD 

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female entrepreneurship success. Female entrepreneurship success is a dependent variable with 

three dimensions: perseverance, the need for achievement, and risk-taking behavior. 

 

Figure 1 

Conceptual framework of the study 

 
METHODS 

The population of this study includes women entrepreneurs in Saudi Arabia, as the 

study aims to examine the role of product innovation in women's entrepreneurship success. An 

exclusive list of women entrepreneurs' population is not available. To determine the minimum 

sample size, we followed the 10:1 rule proposed by Hair et al. (2021), where ten responses are 

required for each indicator. The questionnaire includes 24 indicators, thus requiring a minimum 

sample size of 240. 

Since the exact population size is not known, this study employed the snowball 

sampling technique to reach out to the desired respondents from across Saudi Arabia. The 

authors initially sent the online survey link through personal contacts to female entrepreneurs 

and requested them to snowball it to their contacts. A total of 489 responses were received. 

However, 233 responses were incomplete or unengaged, which were dropped from the 

analysis. A total of 256 complete responses were considered for final data analysis, yielding a 

52% response rate. The majority of the female entrepreneurs (44%) were aged between 26 and 

40 years, followed by around 28% between 41 and 55 years. 64% of the entrepreneurs had a 

graduate degree, followed by secondary education (17%), and a minor percentage (1%) had no 

formal education, while 10 percent had a master's or higher degree. 

The survey questionnaire was designed with due care and following the guidelines 

outlined by Saunders et al. (2016). It was structured to gather data for the six latent constructs 

of this study using Likert scales, alongside collecting anonymous demographic details. 

Respondents' responses were collected using a 5-point Likert scale, with 1 representing strong 

disagreement and 5 representing strong agreement. 

To operationalize the study variables, we utilized pre-validated measurement 

instruments for product innovation from Lai et al. (2010), and for women entrepreneurship 

success from Gupta and Mirchandani (2018) and Abd Rani and Hashim (2015). To ensure the 

suitability of these measurement scales for this study, reliability was ensured through 

confirmatory factor analysis and Cronbach's alpha. Additionally, the scales underwent testing 



THE IMPACT OF PRODUCT INNOVATION ON FEMALE ENTREPRENEURSHIP 

SUCCESS: A CASE OF SAUDI ARABIA 

 8 

for convergent and discriminant validities, as well as face and content validity with input from 

three experts. 

The final data was analyzed using SmartPLS 4 statistical software, employing a partial 

least squares (PLS) approach of structural equation modeling (SEM). This approach was 

mainly used due to non-normal data distribution and reflective nature of study constructs, as 

used by other similar recent studies such as Bajwa et al. (2023), Mahmood et al. (2022), and 

Ahmad and Iqbal (2022). Following  Hair et al. (2021) guidelines, the analysis was conducted 

in two stages: the first stage involved assessing the validity and reliability of the latent 

variables, while the second stage focused on evaluating the structural model to test the research 

hypotheses. 

 

RESULTS 

Measurement Model Specifications 

The foremost prerequisite for the primary quantitative investigation is to assess the 

reliability of the designed instrument. In general, reliability is used to evaluate internal 

consistency in the responses that are measured through instruments; specifically, when the 

construct produces consistent results, this implies that the instrument is accurately designed 

and is reliable to be used for survey questionnaires. Similarly, a second important prerequisite 

for the analysis is the validity of the construct; the validity of the construct refers to the extent 

to which an instrument measures what it was intended (planned) to measure. To assess the 

reliability of the scales, Hair et al. (2021) recommended factor loading scores above 0.60 and 

Cronbach’s alpha values above 0.60. 

As shown in Table 1, factor loadings for all the items of the latent variables are greater 

than 0.60, which has been used as a rule of thumb to accept the factor into the SEM modeling. 

Any items loaded below the 0.60 threshold were excluded from the analysis. For instance, one 

item for perseverance had a value of 0.249; hence, it was dropped from the final dataset. For 

the acceptable value of Cronbach’s alpha and composite reliability, scholars recommend a 

value greater than 0.60 and 0.70, respectively. As the value of all six constructs for Cronbach’s 

alpha and composite reliability exceeded the threshold, there is enough empirical evidence to 

claim that measurement instruments for all latent variables are reliable. 

 

Table 1 

Reliability and validity results 

 Factor Loading 
Cronbach's 

Alpha 

Composite 

Reliability 

Average Variance 

Extracted (AVE) 

Innovation Creed 0.835 0.892 0.677 

ICD1 0.650    

ICD2 0.864    

ICD3 0.844    

ICD4 0.767    

Innovation Conviction 0.790 0.865 0.617 

ICon1 0.884    

ICon2 0.895    



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ICon3 0.858    

ICon4 0.624    

Innovation Mindset 0.766 0.852 0.592 

IM1 0.649    

IM2 0.803    

IM3 0.845    

IM4 0.766    

Need for Achievement 0.864 0.908 0.712 

NA1 0.833    

NA2 0.877    

NA3 0.908    

NA4 0.750    

Perseverance 0.707 0.831 0.585 

P1 0.863    

P2 0.906    

P3 0.249 (Dropped)    

P4 0.843    

Risk-Taking Behavior 0.846 0.895 0.682 

RTB1 0.753    

RTB2 0.839    

RTB3 0.866    

RTB4 0.841    

 

To assess the convergent validity of the measurement scales, scholars have suggested 

three conditions: 1) the average extracted variance (AVE) value should be greater than 0.5, 2) 

CR values should be greater than 0.7, and 3) the CR value should be greater than the AVE 

value. As shown in Table 1, all AVE and CR values significantly exceeded their respective 

thresholds, and all CR values were greater than their corresponding AVE values. Hence, it is 

evident that the instrument measures what it is designed to measure. 

Discriminant validity, on the other hand, ensures that the measures that are theoretically 

expected to be unrelated are indeed not strongly correlated. There exist several methods to 

assess the discriminant validity of the scales. While Fornell and Larcker (1981) and cross-

loading have been the traditional methods to ensure discriminant value, the Heterotrait-

Monotrait (HTMT) ratio of correlations is the most recent, stringent, and recommended 

method. As per Henseler et al. (2015), the value of HTMT should be less than 0.9 to confirm 

that the two measures are distinct conceptually. As presented in Table 2 the HTMT ratio 

between the constructs is less than the threshold of 0.9; thus, it can be claimed that there is 

discriminant validity and that the constructs being used in the paper measure different concepts 

and are unrelated as well. 

 

 

 

 



THE IMPACT OF PRODUCT INNOVATION ON FEMALE ENTREPRENEURSHIP 

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Table 2 

Discriminant validity by HTMT ratio 

 
Innovation 

Conviction 

Innovation 

Creed 

Innovation 

Mindset 

Need for 

Achievement 
Perseverance 

Innovation Conviction      

Innovation Creed 0.587     

Innovation Mindset 0.812 0.722    

Need for Achievement 0.494 0.471 0.559   

Perseverance 0.695 0.515 0.795 0.691  

Risk-Taking Behaviour 0.808 0.613 0.706 0.687 0.856 

 

Structural Model Specifications 

 In structural equation modeling (SEM) the explanatory power of the model is discussed 

to evaluate the extent to which the observed variable is being explained by the regressors of 

the model. For this purpose, the coefficient of determination (R-squared) for each observed 

value is used to assess the explanatory power of the model (Sarstedt et al., 2017). This study 

has only one dependent variable i.e. Women entrepreneurship success which is a higher-order 

construct with three dimensions including the need for achievement, perseverance, and risk-

taking behavior. However, in this study, it has been examined in first order with the 

independent variables. Table 3 illustrates the specifications of the revised model after dropping 

one factor from perseverance.  

 

Table 3 

Model specifications 

 Dependent Variables R Square R-Square Adjusted 

Need for Achievement 0.262 0.253 

Perseverance 0.365 0.358 

Risk-Taking Behavior 0.547 0.542 

  

Therefore, the three observed variables are the need for achievement, perseverance, and 

risk-taking behavior and have R-squares of 0.262, 0.365, and 0.547, respectively. As shown in 

Figure 2, it is found that the regressors of the model, which include innovation conviction, 

innovation creed, and innovation mindset, can explain 26.2% of the variability of the need for 

achievement, 36.5% of the variability of perseverance, and 54.7% of the variability of risk-

taking behavior, respectively. It infers that there is residual in the model, and residual is 

explanatory power that has not been explained by regressors, and residual can only be estimated 

and explained by variables that are not included in the model. Thus, the inclusion of the other 

variables in the model could explain the residual variable and further strengthen the model. 

Meanwhile, it can also be interpreted that other regressors could be used to predict the need for 

achievement, perseverance, and risk-taking behavior among the women entrepreneurs in Saudi 

Arabia. 

Table 4 provides the results of hypotheses testing using path coefficient (β). The table 

infers that if there is one unit of positive variation in the innovation conviction, then it will 



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affect the need for achievement, perseverance, and risk-taking by 0.181 [p = 0.023], 0.239 

[0.001], and 0.523 [0.00], respectively. This clarifies that innovation conviction has a 

significant and positive impact on the need for achievement, perseverance, and risk-taking; this 

means women entrepreneurs' determination and readiness to accept innovation and sincerity to 

deliver commitments are the innovation factors that lead to the success of the business.  

 

Figure 2 

Final measurement model 

 
 

 

Table 4 

Model coefficients estimation output 

Path Path 

Coefficient 

T Statistics P 

Values 

Innovation Conviction -> Need for Achievement 0.181** 2.288 0.023 

Innovation Conviction -> Perseverance 0.239*** 3.448 0.001 

Innovation Conviction -> Risk-Taking 

Behaviour 

0.523*** 8.982 0.000 

Innovation Creed -> Need for Achievement 0.187*** 2.611 0.009 

Innovation Creed -> Perseverance 0.043 0.758 0.449 

Innovation Creed -> Risk-Taking Behaviour 0.182*** 3.395 0.001 

Innovation Mindset -> Need for Achievement 0.238*** 2.663 0.008 

Innovation Mindset -> Perseverance 0.396*** 5.833 0.000 

Innovation Mindset -> Risk-Taking Behaviour 0.148** 2.362 0.019 

***: showing significance at 1%; **: showing significance at 5% 

 



THE IMPACT OF PRODUCT INNOVATION ON FEMALE ENTREPRENEURSHIP 

SUCCESS: A CASE OF SAUDI ARABIA 

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On the other hand, if there is one unit of change in the innovation creed, then it is 

expected that needs for achievement, perseverance, and risk-taking will change by 0.187 [p = 

0.009], 0.043 [= 0.449], and 0.182 [p = 0.001], respectively. This implies that innovation 

positively and significantly affects the need for achievement and risk-taking behavior, but 

perseverance is being affected insignificantly. Therefore, it implies that women entrepreneurs’s 

beliefs and motivations for innovation play an important role in the success of their businesses, 

but this belief does not influence their perseverance. This can be interpreted as a sign that 

entrepreneur women do not believe that facing adversity can significantly contribute to the 

success of the business.  

In addition to this, a single unit of variance in the innovation mindset would change the 

need for achievement, perseverance, and risk-taking by 0.238 [p = 0.008], 0.396 [0.000], and 

0.148 [p = 0.019], respectively. Therefore, it can be determined that all regressors have a 

positive and significant impact on the observed variables. Meanwhile, this can also be 

translated into that an innovation mindset means envisioning and projecting the future 

positively influencing the success of the business and significantly affecting the need for 

achievement, perseverance, and risk-taking behavior. Following the path assessment, the 

summary of hypotheses is presented in Table 5. 

 

Table 5 

Summary of hypotheses 

Hypotheses Results 

H1: Innovation convention positively impacts female entrepreneurship 

success. 
Accepted 

H2: Innovation mindset positively impacts female entrepreneurship success.  Accepted 

H3: Innovation creed positively impacts female entrepreneurship success.  Accepted 

 

DISCUSSION AND IMPLICATIONS 

In the contemporary business environment, women seek equal rights in every aspect of 

life, including business, which has led to significant growth in female-led ventures around the 

world (Demartini, 2018). Meanwhile, the competitiveness of men or women lies with the 

approach and characteristics of the entrepreneurs, and it has been determined by Lee et al. 

(2016),  Provasnek et al. (2017), and Nambisan et al. (2018) that the characteristics of the men 

and women entrepreneurs tend to differ based on the gender difference. However, the 

phenomenon of factors affecting the success of the business remains uniform in either 

condition. In addition, the equal status of women in the Western world has not been completely 

adopted in the eastern countries (Ghita, 2015), specifically Middle Eastern countries, including 

Saudi Arabia. However, recent developments have suggested that female entrepreneurship in 

the Middle East has been stimulated by the government’s support and changing perceptions 

within the region, and this has provided numerous opportunities for women (Danish & Smith, 

2012). In contrast to governmental support and societal change, women have been facing 

discrimination while pursuing entrepreneurship in the country.  



Shabir AHMAD 

13 

 

Apart from this, product innovation has been studied to determine how certain 

characteristics of women have been affecting the success of entrepreneurship, and it has been 

found that innovation conviction and innovation mindset have been affecting the need for 

achievement, perseverance, and risk-taking behavior significantly and positively. This implies 

that sincerity in conveying commitments and a positive attitude toward innovation affect the 

success of entrepreneurship. In contrast, the innovation creed has been found to have a 

statistically insignificant effect on perseverance, which means that belief and motivation for 

innovation do not influence success even after facing adversity in business. Meanwhile, based 

on the current findings of the study, it can be stated that women's entrepreneurship in Saudi 

Arabia has been growing, but product innovation can significantly influence the success of 

entrepreneurship; it is also critical that women have achievement, perseverance, and risk-taking 

behavior. It is because the need for achievement enables women to consistently work in a 

direction that is aligned with the mission statement and are eager to achieve something, 

irrespective of hardship. Similarly, perseverance has also been found critical, along with risk-

taking behavior, where both factors have been significantly affected by product innovation. 

These findings have important practical implications as discussed below. 

Towards government and regulatory authorities, there is still a long way to go to bring 

gender equality in businesses specifically and in society generally. Although Vision 2030 

emphasizes innovation and gender equality in society, its implementation will take its due 

course. Our findings highlight the importance of cultivating innovation conviction, mindset, 

and creed in women entrepreneurs to be successful in their entrepreneurial ventures. In this 

regard, the government can take several practical steps to promote women's entrepreneurship 

and remove the barriers that hinder women's participation in entrepreneurship in the country. 

The government needs to implement legal and regulatory reforms to create gender 

equality, simplify the business registration process, provide equal access to financial resources, 

and provide dedicated funding programs, loans, and financial incentives for women 

entrepreneurs. In addition, the government may enhance entrepreneurial skills and foster 

acumen for innovation in women by developing educational and training programs and even 

including courses at the school and university levels. 

Likewise, the government needs to facilitate networking events, industry-specific 

forums, and mentorship programs that connect women entrepreneurs with experienced 

mentors, industry leaders, and potential collaborators. These platforms can provide valuable 

guidance, support, and access to networks and resources. In addition, innovation and 

entrepreneurship can be encouraged through incentives, grants, and support for research and 

development initiatives. Other than that, the government can launch awareness campaigns to 

promote the benefits of women's entrepreneurship by highlighting the success stories of women 

entrepreneurs and showcasing their achievements.  

Overall, this requires building a supportive ecosystem for women entrepreneurs by 

investing in infrastructure, such as co-working spaces, incubators, and accelerators, that 

provide access to facilities, resources, and support services. Additionally, fostering 

partnerships between government, the private sector, academia, and civil society organizations 

can create a collaborative environment conducive to entrepreneurship. 



THE IMPACT OF PRODUCT INNOVATION ON FEMALE ENTREPRENEURSHIP 

SUCCESS: A CASE OF SAUDI ARABIA 

 14 

LIMITATIONS AND FUTURE RESEARCH DIRECTION 

In this study, the impact of product innovation on the success of female entrepreneurs 

in KSA has been analyzed with the help of quantitative data gathered through the surveys. 

Therefore, the findings are limited to the quantitative assessment. However, future researchers 

can extend this study by incorporating and investigating the qualitative information that can 

help them compare both findings and explore the phenomenon further in detail. Moreover, 

future researchers can identify numerous other factors to investigate the impact of product 

innovation on female entrepreneurs’s success in Saudi Arabia and beyond. In addition, they 

can also investigate the challenges and barriers faced by women in Saudi Arabia and other 

countries that hinder their way of attaining entrepreneurial success. 

 

CONCLUSIONS 

Innovation is considered a vital component for the success of a business venture 

because it allows the creation of a competitive advantage and takes the lead in a complex 

business environment. However, from the analysis carried out in this research, it was 

determined that the beliefs, attitudes, and mindsets of individuals play a central role in keeping 

entrepreneurs motivated toward innovation and objectives. For female entrepreneurs, 

motivation is considered the driving force that allows them to adhere to their business goals 

and accelerate in a forward direction, standing firm against all barriers and challenges. 

Furthermore, empirical results suggest that perseverance, the need for achievement, and risk-

taking behavior are imperative determinants that reflect the success of women entrepreneurs in 

KSA. In this regard, the impact of innovation, such as innovation convention, innovation creed, 

and innovation mindset, was tested over perseverance, need for achievement, and risk-taking 

behavior. Every determinant of innovation has a positive impact on women's entrepreneurship 

success in KSA. Considering this aspect, the research has certain implications for the 

government of KSA, which needs to create opportunities to support women and promote the 

ones already in business. 

 

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