The Key Sustainable Strategies Criteria for Effective Human Resource Management Practices

Abstract

The management of an organization’s human resources is the first stage in the governance process for any operation. This present study examines the strategies employed in Saudi Arabia for establishing effective governance through the implementation of human resource management practices and the key sustainable strategies criteria for effective human resource management practices. This step is considered crucial in governance as it involves the selection of highly qualified individuals who are expected to contribute to the achievement of optimal governance outcomes and the overall well-being of the population within a nation, as well as the key criteria involved. A qualitative research methodology and a decision-making trial and evaluation laboratory (DEMATEL) were utilized with a sample of 31 participants from eight government ministries and fourteen companies in Saudi Arabia. The study’s findings, from the qualitative interviews, exert four key criteria influencing effective human resource sustainable management practices. “Cultural reflection” is the most important long-term goal of Saudi Arabia’s HRM initiatives, found from the DEMATEL evaluation, with three criteria presenting values of 7.9181, 8.2294, 8.1961, all above the threshold value of 7.783599781. This means that HR professionals should take the time to study and evaluate the cultural dynamics in their workplace in order to promote cultural introspection and understanding of cultural differences.

1. Introduction

The role of human resource management (HRM) has undergone a transformation in the contemporary worldwide and networked business environment, shifting from a purely administrative function to a strategic catalyst for achieving organizational performance [1]. HRM techniques are of significant importance in influencing an organization’s culture, employee conduct, and general governance [2]. Kjaer [3] aimed to find a way in which governance might be widely defined and positioned in a manner that is at the center of an organization, where it can reflect certain duties. His efforts have proven to be fruitless as he came to the realization that “Governance” refers to something that is much bigger than “Government” and that it is about “steering” and “the rules of the game”. The overall goal of good governance is to improve the standard of living of a nation’s population to the greatest extent possible. The governance process begins with an operation, where the administration of an organization’s human resources is the first stage in this [4]. Since this appears to be the first and most important step in governance, because it is the step that would gather the best people expected to provide the best governance in order to achieve the highest well-being of people in a country, the purpose of this current paper is to investigate the strategies for establishing effective governance via human resource management practices in Saudi Arabia.

In contrast to several countries, the Kingdom of Saudi Arabia is founded upon traditional values [5]. In the specific setting of Saudi Arabia, a country known for its distinct cultural norms, values, and religious sensitivities, the incorporation of governance strategies has become of utmost significance. Nevertheless, it is intriguing to note that Saudi Arabia, a nation governed by a monarch and founded upon a hierarchical structure built on clans, possesses its own constitution [6]. The cultural and societal aspects of Saudi Arabia have positioned the kingdom as a highly profitable labor market [7]. When considering the significance of HRM in Saudi Arabia, it is necessary to evaluate the composition of the workforce, as it is significantly impacted by the prevailing labor relations [8]. According to a report by Reuters, the current population of Saudi Arabia stands at 32.2 million individuals [9]. It is noteworthy that approximately 42% of this population comprises foreign nationals, while Saudi citizens make up the remaining 58%. Furthermore, the report highlights that a significant proportion of Saudi citizens, specifically 63%, fall under the age of 30. This implies that Saudi Arabia possesses a favorable position to effectively respond to the demographic dynamics of a heterogeneous, young, and swiftly evolving labor force. It may achieve this by devising strategies that specifically tackle the distinctive obstacles and prospects arising from this demographic structure.

One of the major research problems this study highlights lies with the strategies that can be a device for establishing effective governance through HRM practices in Saudi Arabia, and there are challenges in general with HRM practices falling within the realm of this research problem. The influence on HRM practices could transcend societal issues and include the examination of information availability and many more [10]. It is noteworthy to establish the prevalence of foreign personnel in the private sector, which can reach as high as 95% and can be attributed to governance [11]. Cultural conceptions have a significant impact on the strategies and practices employed, particularly in the context of managing and resolving the balance of the labor force in Saudi Arabia [12]. The workforce in Saudi Arabia demonstrates a notable degree of diversity. The formation of good governance is a crucial component in attaining organizational success, and its achievement relies on several factors, including leadership, transparency, accountability, and ethical behavior [13].

This study identifies another area of research that deserves significant attention, which pertains to the examination of the concerns associated with the large impact of HRM strategies on various criteria. The potential to cultivate an environment characterized by integrity can be realized by implementing ethical HRM practices [14]. However, the extent to which this can be quantified remains uncertain. The effectiveness of aligning employee behavior with the basic values of an organization through the implementation of HRM strategies and practices remains uncertain. Furthermore, there remains a lack of certainty regarding the potential impact of implementing HRM practices on the improvement of openness and accountability within organizational decision-making processes [15]. While Saudi organizations strive to improve governance effectiveness, comply with legal obligations, and establish a reputation for ethical behavior by incorporating ethical principles into their HRM strategies [16], the method for quantifying the extent of this contribution remains unclear.

An additional research problem that this study is willing to solves lies with the issue of introducing integrated functional and strategic aspects of HRM on governance in Saudi Arabia, as highlighted by Allui and Sahni [17]. The alignment of Saudi Arabia’s situation with the integration of governmental action on both the commercial and public sectors has a substantial effect on the decision-making process of HRM techniques in Saudi Arabia [18]. These procedures are shaped by both the established norms within the sector and the conventions and decisions made by the monarchy. Therefore, one may suggest that while there is an inherent unpredictability to the corporate environment, the possibility of conflicts emerging remains substantiated in governance. HRM processes may sometimes give rise to conflicts in governance, which are considered to be an inherent element of these practices [19]. This is because disputes can work as catalysts for facilitating organizational modifications and transformations [20].

There exists a lack of research investigating the specific strategies employed by firms in Saudi Arabia to incorporate strategic concepts of governance through HRM policies and the subsequent impact on governance. As a result, this study found it necessary to answer the following research questions:

• How do HRM practices impact governance outcomes?
• What are the specific key criteria associated with the success of HRM practices on governance outcomes?
• How do the specific key criteria associated with the success of HRM practices provide actionable insights for companies seeking to enhance governance procedures?
• How should the impact of culturally adapted HR practices on governance be assessed?

Following the formulation of the research questions intending to reveal the key sustainable strategies criteria for effective human resource management practices, this research seeks to achieve the following objectives:

• To examine the impact of HRM practices on governance outcomes.
• To determine the specific key criteria associated with the success of HRM practices on governance outcomes.
• To investigate the specific key criteria associated with the success of HRM practices to provide actionable insights for companies seeking to enhance governance procedures.
• To assess the impact of culturally adapted HR practices on governance.

These factors offer valuable and actionable insights for companies seeking to enhance governance procedures. As a result, the current study contributes in the following ways:

• The study contributes by highlighting the need for the integration of ethics and HRM as a crucial aspect of governance. The research emphasizes the significance of incorporating ethical concepts into HRM policies and practices to promote effective governance. The prioritization of ethics offers a distinct framework for businesses seeking to synchronize their principles with their systems of governance.
• The study acknowledges the importance of HRM in fostering ethical leadership within a business. This study also posits that the implementation of ethical leadership, facilitated by HRM practices, is crucial in fostering governance excellence.
• The research advocates for a comprehensive approach to HRM and governance, surpassing the basic adherence to regulatory requirements. The advancement of perceiving HRM as an essential component of governance is advocated, urging firms to consider not just compliance with legal requirements but also the cultivation of a corporate environment characterized by accountability, transparency, and ethical obligations.

Apart from this current section, which provides the background of the research, the remaining sections are organized as follows: Section 2 presents the theoretical framework of the research, Section 3 provides the research-related work, Section 4 presents the analysis and results, Section 5 presents the discussion, Section 6 provides the implications of the study, the limitations and recommendations for future work, and finally, Section 7 presents the conclusion of the research.

2. Theoretical Framework

There are various theoretical frameworks that can support the establishment of effective governance through HRM practices. This involves aligning HR processes with the organization’s goals, values, and regulatory requirements. Research in the field of sustainability strongly indicates that incorporating sustainability into HRM processes can yield significant benefits [21]. Researchers can utilize several theoretical frameworks to examine empirical data regarding HRs, derive findings on its influence on governance, and offer practical suggestions for organizations aiming to improve their governance through HR strategies. Therefore, the following theories were adopted: “Cultural Adaptation Theory” and “Ethical Governance and Compliance Theory”.

2.1. Cultural Adaptation Theory

Cultural adaptation refers to the deliberate and intentional response of an organization to match itself effectively with a particular country or collection of countries. This approach guarantees that participating countries derive maximum advantages from their membership in these groups [22]. The main benefit of this is unquestionably the ability to access the unique and additional resources and experience of the partners. When there exists a considerable physical distance, the process of adapting typically involves setting up main operations in the relevant area. Additionally, this enables organizations to adapt their systems and structures to correspond with the unique attributes of the new environment, such as the current or emerging cultural values, business practices, and regulatory standards. The process of expanding a business internationally poses substantial difficulties in various areas of functional management and strategic corporate decision-making. Every level of management has distinct objectives that are a specific blend of the organization’s characteristic goals.

Cultural Adaptation Theory, alternatively referred to as the Culture Learning Theory or Cultural Adjustment Theory, is a theoretical framework rooted in sociology and psychology [22]. Its primary objective is to elucidate the process by which individuals hailing from one cultural context acclimate to and engage with a distinct and unfamiliar culture [23]. Furthermore, this approach has been utilized in situations that necessitate interactions with other cultures [24]. Saudi Arabia is home to a significant number of expats, and the implementation of HR policies can play a crucial role in influencing governance outcomes.

An analysis of the relationship between Cultural Adaptation Theory and the strategic integration of cultural adaptation in Saudi Arabia’s human resource practices is crucial. Organizations in Saudi Arabia regularly guarantee that all human resources actions are aligned with its culture. This approach ensures that participating human resource managers will fully benefit from accessing the distinct and supplementary capabilities and skills of the partners. This also allows Saudi organizations to modify their systems and structures to align with the distinct characteristics of its culture, including the prevailing or emerging cultural values, business practices, and legal norms.

The topic of cultural adaptation has gained greater attention in the realm of international and development management, where the importance of being firmly embedded in specific social and political contexts has been recognized. Variations in cultural traditions and organizational techniques might result in differences in the obstacles and overall efficacy of procedures, as is commonly observed in Saudi Arabia. Vallis et al. [25] analyze the importance of educational design patterns for large-scale connected learning. These patterns utilize strategic HR management strategies to enhance organizational capacities. In a study conducted by Rabialdy et al. [26], a measurement tool was created that includes cooperative criteria and a cross-cultural adaptation process as crucial elements for assessing cooperative performance.

Recently, green human resource management (GHRM) has emerged as a way to encourage environmental conservation in manufacturing firms. The text highlights that pro-environmental behaviors (PBs) and improving environmental performance (EP) are identified as the fundamental elements of human resource management (HRM) according to Aftab and Veneziani [27] and Aftab et al. [28]. The research has shown that including GHRM strategies, such as green recruitment, training, job analysis, and reward systems, has a positive effect on both sustainability and employees’ environmental performance. Put simply, the study discovered that having a greater understanding of the environment (Environmental Knowledge) strengthens the relationship between the beliefs held by the public (Public Beliefs) and the actual environmental outcomes (environmental performance). For the organization to make real improvements in its environmental performance, it is crucial that employees have a thorough comprehension of environmental issues and are able to translate their pro-environmental actions into practical results [28].

This research has found that Cultural Adaptation Theory supports the idea that differences in management and organizational styles due to cultural variation can lead to variations in the challenges of HRM practices and the overall effectiveness of HRM strategies.

2.2. Ethical Governance Compliance Theory

The Ethical Governance and Compliance Theory is a theoretical framework that prioritizes the advancement of ethical behavior, accountability, and conformity to rules in diverse organizational and institutional settings [29,30]. This theoretical framework focuses on the importance of ethical principles and values in the execution of governance operations, with a specific focus on adhering strictly to legal and regulatory norms. The theory of ethical governance compliance emphasizes the importance of firms adhering to ethically defensible standards set by democratic authorities [31]. The text underscores the significance of organizational transparency, regulation, and governance in upholding ethical norms in the construction industry.

The theory is drawn from a multitude of existing hypotheses. The concept in question originated from agency theory, incorporating the implications of moral hazard. It subsequently advanced through the incorporation of stewardship theory and stakeholder theory, and further evolved within resource dependence theory, transaction cost theory, and political theory [32]. Subsequently, additional ideas such as ethics theory, information asymmetry theory, and the theory of efficient markets were incorporated. The theories under consideration are delineated according to the causal factors and consequential outcomes associated with variables such as the composition of the board of directors, the audit committee, the autonomy of managers, the involvement of top management, and their extralegal social connections [33].

An organization can employ an Electronic Governance and Compliance Tool (EGCT) to guarantee adherence to regulations and responsibility for decision-making. Within this organizational framework, the organization’s strategy is continuously adjusted to align with the management’s thoughtful consideration of the potentially conflicting and evolving expectations of their important external and internal stakeholders, such as shareholders, clients, employees, suppliers, and even abstract yet crucial elements like nature and the environment, given CGC’s multistakeholder approach [34]. The digital era poses significant hurdles for modern organizations in terms of adhering to ethical governance compliance theory (Lomas and McLeod, 2020 [35]). A major ethical governance compliance issue in contemporary organizations arises from inadequate ethical communication and information processing. By utilizing reliable information and effective communication methods, organizations can create additional avenues to improve compliance with ethical governance.

The modern field of human resource management (HRM) lays great emphasis on the creation of sustainable HR strategies and ensuring that organizations adhere to ethical governance. The research concluded that corporate governance has a crucial role in establishing a system for efficiently managing, preserving, and enhancing the value of an organization’s human resources, while also recognizing its collective responsibilities [36]. This implies that organizations invest money towards HR operations in order to motivate their staff to enhance their performance and productivity, while simultaneously enhancing their marketability. Given their significant expenses, it is imperative to utilize the ethical resource-based theory to understand and manage ethical behavior [37]. According to the ethical governance compliance theory, ensuring the protection of organizational interests can be accomplished by establishing corporate boards that possess both independence and competence. Moreover, enhancing market surveillance is essential in deterring unscrupulous conduct by directors. This entails the identification, legal action, and suitable retribution of individuals or organizations engaged in unethical or illegal activities inside the corporate sector. By incorporating an ethical framework into Saudi Arabia’s HRM procedures, there is a clear emphasis on imposing more severe external penalties for unethical conduct. Companies in Saudi Arabia that adhere to rigorous ethical governance standards exhibit a dedication to social equity and mutual regard.

As a result, this phenomenon cultivates a feeling of assurance and dependence among employees, stakeholders, and the broader community, providing a significant contribution to the formation of effective governance and the achievement of sustainable organizational achievements.

3. Related Work

A significant fraction of research inquiries carried out in Saudi Arabia may center on the analysis of human resource management (HRM) practices inside the public sector [38]. The examination of the recruitment, retention, and professional development of government workers is a crucial aspect to consider, as the effectiveness of governance heavily relies on a competent and motivated workforce [39]. Previous academic research has mostly concentrated on examining the impact of HRM practices inside Saudi firms on governance, employing various viewpoints [40]. Numerous scholarly inquiries delve into various facets pertaining to HRM strategies, challenges in governance, the congruence of HRs with governance objectives, cultural influences, governmental regulations, leadership dynamics, measurement methodologies, exemplary approaches, and the impediments encountered within these domains [30]. This research provides useful insights into the optimization of HRM processes, specifically within the unique context of Saudi Arabia, with the aim of enhancing governance.

According to Al-Taweel [41], managers exhibit a noticeable deficiency in fully comprehending the prospective impact of high-performance work practices in facilitating the advancement of health services in many domains. This study investigates the impact of implementing high-performance work practices within the realm of human resource management in select healthcare clinics situated in the Kingdom of Saudi Arabia. The results indicate that the implementation of high-performance work practices has a significant role in the attainment of organizational objectives as it enhances employee performance, productivity, and the overall quality of healthcare services provided by health dispensaries. Additionally, it contributes to the improvement of institutional features and performance.

Abaker et al. [42] identified a gap in the existing body of information regarding middle eastern countries, specifically in relation to empirical research undertaken in Saudi Arabia. Their study aimed to investigate the effects of organizational policies and practices on diversity management within the Saudi private sector. The results indicate that the implementation of Saudization, retention strategies, compensation packages including perks, and health insurance policies have a substantial impact on diversity management within the commercial sector in Saudi Arabia.

Cherif [43] conducted a study to investigate the correlation among work satisfaction, turnover rate, human resource management, employee job satisfaction, and organizational commitment in the banking industry in Saudi Arabia. The objective of the study was to examine if a strong sense of job satisfaction among bank employees can effectively reduce the occurrence of low turnover rates. The study’s results demonstrate a direct relationship between human resource management and both employee job satisfaction and organizational commitment. Conversely, there was a direct association between employee job satisfaction and organizational commitment.

Alshaikhmubarak [44] identified a knowledge vacuum pertaining to human resource management (HRM) practices in the public higher education sector of Saudi Arabia. The study aims to investigate the influence of high-performance HRM practices on the research performance and career success of academics. The findings indicate that the implementation of effective human resource strategies, such as internal mobility and recognition, significantly influenced the career success of faculty members. Additionally, it was observed that the influence of these policies on career success was mediated by the research performance.

According to the research conducted by Salih and Dolah [45], contemporary firms are actively seeking effective strategies to improve their managerial competencies and obtain desired outcomes in their commercial operations. This study aims to examine the influence of human resource availability on the implementation of business excellence models. The study reveals the identification of five key success factors for the implementation of business excellence models in Saudi nonprofit organizations. These factors encompass the capabilities of data analysis and reporting, effective communication within the organization, the strategy and approach employed during implementation, the utilization of bench-marking practices, and the adoption of a well-defined governance framework.

Qazi and Miralam [46] argue that human resources are a vital organizational asset that enables an organization to maintain its effectiveness and value. They further assert that the banking sector in Saudi Arabia is currently grappling with intense competition, economic challenges, and the implementation of Saudization policies, particularly in relation to human resources. This study aims to investigate the impact of human resource procedures on job satisfaction among employees in the private sector banking industry in Saudi Arabia. The results of the study indicate that training does not have a statistically significant impact on job satisfaction. However, other human resource management strategies such as performance appraisal, teamwork, employee engagement, and remuneration demonstrate a positive and statistically significant influence on job satisfaction.

According to Al Doghan [47], there has been a dearth of research investigating the impact of human resource management techniques and work environment on teacher retention. Therefore, this study aims to investigate the impact of human resource management techniques and work environment on faculty retention in the specific context of Saudi Arabia. The results suggest that faculty retention is positively affected by training and development, remuneration and benefits, and work environment. However, no significant correlation was observed between recruitment and selection, as well as the performance rating system, and faculty retention.

The study conducted by Al-Kazlah and Badkook [48] aimed to assess the efficacy of HRM practices in enhancing employees’ intrinsic motivation and originality. The researchers established a connection between HRM practices and the aforementioned outcomes, leading to the investigation of the impact of HRM practices on workers’ enthusiasm and ingenuity. The results suggest that job design as a whole has a noteworthy and substantial influence on employees’ motivation. Specifically, the dimensions of task significance, feedback, and autonomy are identified as the most influential aspects of job design. Additionally, job training is found to have a considerable and favorable effect on intrinsic motivation.

Al-Hanawi et al. [49] conducted a study to examine the state of human resource development in the healthcare industry in Saudi Arabia, given the country’s ongoing transformative phase. The study’s results indicate that the implementation of Saudization and the ‘Nitaqat’ program have been influential in advancing the Saudization objectives within the private sector. Furthermore, there exists a significant opportunity to include young, skilled Saudi individuals in the healthcare industry.

This study has identified a “research gap” in the existing literature, as it has observed that previous studies have not adequately considered “Employee Perspectives” when examining the impact of HR practices on governance. By incorporating insights from employees at different hierarchical levels, this study aims to provide a comprehensive understanding of how HR practices influence governance from multiple viewpoints. Moreover, an additional “gap in the literature” exists in terms of the limited investigation into the viewpoints of other stakeholders, such as governmental bodies, industrial groups, and non-governmental organizations.

4. Research Methodology

This current study adopted a qualitative research methodology and the DEMATEL evaluation approach. The qualitative approach is primarily aimed at gathering information about the sustainable approach towards uncovering the key sustainable strategies criteria for effective HRM practices by participating in discussions with experts in the relevant filed. The use of this methodology is crucial in addressing the research issue and obtaining the requisite data [50]. Therefore, it is crucial for the research to integrate a wide range of perspectives, conduct a complete analysis of the various facets associated with a sustainable strategy for HRM practices, and provide a clear depiction of the broader context that emerges [51].

The DEMATEL approach is a sophisticated analytical tool employed in decision-making to comprehend the deep interconnections among many components. An appreciation of the interrelationships among various criteria that influence effective HRM practices is advantageous for decision-makers as it will enable them to discern significant factors and associations within their practices. The DEMATEL approach is especially valuable in these kinds of scenarios because there are several criteria or variables that interact and influence HRM practices, making it difficult to determine the relative significance or influence of each of these aspects.

4.1. Research Population and Sampling Technique

The procedure of estimating the study population involves the identification of potential participants who are pertinent to the research subject [52]. The main aim of this study is to investigate the obstacles faced by firms in Saudi Arabia while implementing strategies to establish effective governance using HRM techniques. Therefore, the scope of this study includes persons who demonstrate a significant level of expertise in the domain of HRM. The research is centered around individuals who utilize HRM in their professional endeavors.

The research has utilized purposeful sampling as the designated approach for participant selection. The fundamental tenet of qualitative research involves the purposeful inclusion and integration of individuals who possess the most relevant perspectives and knowledge [53]. This methodology is also similar to the DEMATEL evaluations in understanding the matter being investigated and enabling a comprehensive examination of the research topic. Hence, a purposive sampling technique was employed, resulting in the selection of a cohort including 35 participants for the study.

4.2. The DEMATEL Evaluation Process

The DEMATEL method is a systematic approach employed to analyze and depict intricate cause-and-effect linkages among different aspects or criteria in decision-making procedures [54]. It aids in the identification and visualization of the impact and interconnectedness among variables, facilitating comprehension of their direct and indirect impacts on one another. This strategy is especially beneficial for tackling intricate problems that include the interaction of several components in a dynamic manner. The origin and evolution of DEMATEL may be traced back to its first approach, which involves the creation of the method by the Battelle Memorial Institute at the Geneva Research Centre in the 1970s [55]. Its primary purpose was to assess and solve intricate and interconnected groups of problems by offering a concise and methodical understanding of their structure and interconnections. The DEMATEL approach can be utilized in the field of human resource management (HRM) to identify and prioritize crucial criteria that impact the effectiveness of HRM practices, notably in the development of sustainable strategies. This study aids in comprehending the interconnectedness between various human resource management practices and sustainability criteria, as well as identifying the practices that have the most influence on attaining sustainability objectives.

Several studies have utilized the DEMATEL approach to address numerous complicated issues across different domains. An example of this is the research conducted by Tseng [56], which utilized the DEMATEL technique to assess the connections between requirements for green supply chain management in electronics industries. This study emphasized the efficacy of DEMATEL in addressing the intricacy of sustainability concerns and presented a structure for making strategic decisions in green supply chains. Shieh et al. [57] conducted a study that used DEMATEL to evaluate the connections between components in Total Quality Management (TQM) procedures. This study highlighted the method’s capacity to discover crucial aspects that have a substantial impact on the adoption of Total Quality Management (TQM) in organizations. Wu and Lee [58] utilized DEMATEL to investigate the crucial determinants of success for knowledge management systems in high-tech industries in Taiwan. Their discoveries yielded valuable understanding of the crucial components and their interconnectedness, presenting a comprehensive plan for efficient knowledge management.

Some other studies, like the research work of Rajabpour et al. [59], assessed the implementation of green human resource management practices in petrochemical sectors. They employed a combined approach of fuzzy hierarchical analysis and a type-2 fuzzy DEMATEL. The findings indicated that the green training and development process is the most crucial element in successfully implementing green human resource management. Tooranloo et al. [60] conducted a study to investigate the factors that influence the successful implementation of sustainable human resource management (SHRM). They used a hybrid approach of the FAHP (fuzzy analytic hierarchy process) and type-2 fuzzy DEMATEL to analyze these aspects. The findings suggested that the environmental dimension played a significant role as a causal component, whereas the social and economic dimensions were influenced and considered as the resulting impacts. Abdullah and Zulkifli [61] employed DEMATEL to analyze the predominant factors in human resource management. The findings indicate that the criterion of education holds greater significance compared to other criteria, since it serves as a causal factor and has a direct impact on HRM.

It is also critical to acknowledge the research work of Chou et al. [62], who employed the DEMATEL approach to investigate the criteria for human resource selection in the field of science and technology. The findings suggest that infrastructure is the primary determinant for establishing a sustainable human resource base in the field of science and technology. Pandey and Kumar [63] conducted a review of the study by Chou et al. [62] and suggested enhancements to the DEMATEL approach, specifically focusing on the need to rethink the use of the multiplicative inverse of a fuzzy matrix. Agarwal and Kapoor [64] employed the DEMATEL method to examine the obstacles in implementing green HRM and explore their interrelationships. The findings suggest that the identified impediments will provide guidance to policy makers in developing strategies to overcome these obstacles.

Other related work within the application of DEMATEL in HRM is the research work of Yang et al. [65], who employed DEMATEL to investigate the efficacy of the human resource management system. The findings suggest that government policies are the most crucial factor affecting hospital human resource management. Siregar and Dachyar [66] employed DEMATEL to identify the criteria of a human resource information system that impacts the performance of human resources in enterprises. The most crucial criterion for evaluating human resource performance in companies is presenting data of a high level of quality. Pandey et al. [67] employed the DEMATEL methodology to obtain insights into the interconnectedness between quality and human resources. The discovery demonstrates that leadership growth is the key criterion for effective practices.

The studies highlight the flexibility and strength of the DEMATEL technique in several situations, including the implementation of sustainable HRM practices. Organizations can enhance their ability to promote sustainability in their operations by carefully analyzing and understanding the complex network of connections between sustainability criteria and HRM practices and using this knowledge to develop and implement effective strategies.

The primary goal of utilizing DEMATEL was to obtain expert opinions on specific criteria by thoroughly analyzing the different aspects of each criterion. The design of these components is intended to optimize the decision-making process, resulting in improved perspectives and optimal choice outcomes. The steps of the DEMATEL technique are as follows:

Experts assign a numerical value to $x_{ij}$ in order to denote the importance of each criterion’s influence. The values are determined using criteria denoted by i and j, which consider cause and effect. For each value of n, an expert’s response is obtained. Equation (1) forms a non-negative n × n direct relation matrix:

$$x^y={\left[x_{ij}^y\right]}_{n\times n}$$

(1)

y represents the number of representations for each expert, ranging from 1 to q. The equation produces a matrix q for x¹, x², … x^q, where q represents the total number of experts. Equation (2) displays the average aggregated decision matrix for all the experts, Z = $\left[z_{ij}\right]$.

$$Z_{ij}=\frac{1}{q}{\sum }_{i=1}^q{x}_{ij}^y$$

(2)

The second step involves the generation of the normalized direct relation matrix. In order to generate the matrix D, which is a representation of the direct relations, Equation (3) is utilized.

$$D=\mathit{max}\left(\underset{1\le i\le n}{\max }{\sum }_{j=1}^n{z}_{ij},\underset{1\le j\le n}{\max }{\sum }_{i=1}^n{z}_{ij},\right)$$

(3)

In light of this, each and every cell that is contained within matrix Z will have a value that falls somewhere between the range of 0 and 1 in terms of numerical values.

Exponentiating the normalized initial direct relation matrix D to the power of m, m represents the indirect impact D^m; this is the third step in the process of generating the total relation matrix. In the matrix that was produced, which is designated by the letter T, the cumulative influence that was generated by the participant’s response is displayed. When the direct relation matrices D + D² + … + D^m are added together, the total relation matrix T can be formed. As the value of D^m approaches zero, we are able to draw the conclusion that T is the same as the direct relation matrix D that was first used. Therefore, the total relation matrix T may be represented as

T = D + D² + … + D^∞. This expression can be further simplified as T = D + D² + … + D^∞ is T = $\underset{m\to \mathrm{\infty }}{\mathit{lim}}\left(D+D^2\dots +D^m\right)=D{\left(I-D\right)}^{-1}$. As a result, Equation (4) is derived

$$T=D{\left(I-D\right)}^{-1}$$

(4)

where I is an identity matrix of dimensions n × n.

The fourth step encompasses the process of developing the rows and columns of the matrix. The vectors are utilized in order to depict the rows and columns that are a part of the complete relation matrix. If the vectors r and c, respectively, are used to represent the total of the rows of matrix T and the total of the columns of matrix T, then the row and column vector are developed by Equation (5):

$$r={\left[r_i\right]}_{\mathrm{n}\times 1}={\left[{\sum }_{j=1}^n{t}_{ij}\right]}_{\mathrm{n}\times 1} \mathrm{and} c={\left[c_j\right]}_{1\times \mathrm{n}}={\left[{\sum }_{j=1}^n{t}_{ij}\right]}_{1\times \mathrm{n}}$$

(5)

If j is equal to i, then the influence that criterion i has on j will be represented by the difference between the total of r_i and c_j. In the event that j is not equal to i, the sum will reveal the overall effects that criteria i has experienced, while the difference will demonstrate the overall influence that criterion i has contributed to the system for the system as a whole. On the other hand, if the value is positive, then the criteria i serves as a primary cause, and if the value is negative, then it serves as a primary effect. It is possible to classify the criteria as belonging to the cause group if the difference between r_i and c_j is positive. This indicates that the criteria have a considerable influence on the other criteria. On the other hand, if the difference between r_i and c_j is determined to be negative, this suggests that the criteria in issue are being influenced by the other criteria collectively and ought to be categorized as the “effect”. It is for this reason that the sum of r and c is referred to as the “Prominence”, while the difference between r and c is referred to as the “Relation”.

During the fifth step, the process involves determining a threshold value (α) for the purpose of generating an interaction diagram. It is possible to determine the threshold value for the impact connection by using Equation (6),

$$\alpha =\sum _{i=1}^n\sum _{j=1}^n{t}_{ij}/N$$

(6)

where α is equal to the sum of the sums of the t_ij divided by N. A total number of matrix elements will be obtained by calculating the average of the members of the matrix T, and the variable N is a representation of this total number of matrix elements. Through the use of this computation, any impacts that are deemed to be of a modest nature are identified and eliminated. The fact that there will be no impacts that are less severe than the threshold value indicates that the impact connections will not include any consequences that are less severe than the threshold value.

The sixth step involves the creation of a relational diagram that illustrates the causal relationship between the components and the effects they have: for the purpose of constructing the relationship diagram, the correlation between the cause and effect has been assigned to each of the coordinate sets that comprise the entire array of rows and columns. This was conducted in order to ensure that nothing is overlooked. This graphic contains rows and columns that represent the interactions between the criteria. These rows and columns give essential information that can be used to determine the relative importance of each criterion as well as how they interact with one another.

4.3. Instrumentation for Data Collection

The research employed a qualitative methodology, utilizing a validated instrument comprising a set of open-ended questions. The validation procedure involves the participation of HRM experts, who provided their perspectives on the suggested question. Following the revision of expert opinions, the final interview questions have been created for the upcoming interview, as indicated in

Table 1. Interview questions.

RO1	Cultural Norms, Values, and Religious Sensitivities Prevalent
	How do you perceive the cultural values and norms that influence HR practices and governance within your organization?
	Can you provide examples of how cultural factors impact decision-making processes related to HR policies and governance initiatives?
	How do you navigate religious sensitivities while implementing HR practices that align with organizational goals and values?
	In your experience, what are the key challenges in reconciling cultural differences with the need for effective governance within your organization?
RO2	Enhance employee engagement and performance
	How do you approach the task of customizing HR policies to accommodate cultural differences while promoting effective governance?
	Can you share examples of cultural adaptation initiatives that have positively impacted employee engagement and performance?
	What challenges have you encountered when implementing culturally adapted HR policies, and how have you addressed them?
	In your opinion, how do culturally sensitive HR practices contribute to fostering a positive work environment and overall governance effectiveness?
RO3	Customize HR practices to reflect local cultural
	What strategies do you employ to ensure that HR practices are tailored to local cultural norms while supporting the organization’s strategic objectives?
	Can you describe instances where HR practices have been successfully aligned with both cultural expectations and organizational goals?
	How do you strike a balance between adapting HR practices for cultural sensitivity and maintaining consistency across the organization?
	What role does leadership play in ensuring that customized HR practices contribute to effective governance while maintaining organizational cohesion
RO4	Assess the impact of culturally adapted HR practices
	How do you perceive the influence of culturally adapted HR practices on fostering transparency and accountability within your organization?
	Can you share examples of how culturally sensitive HR practices have contributed to ethical behavior and compliance with governance standards?
	What indicators do you observe that suggest a link between culturally adapted HR practices and positive governance outcomes?
	In your experience, how do culturally adapted HR practices contribute to building a culture of trust and ethical behavior among employees, enhancing overall governance?

. The interview questions underwent an additional validation process, which led to the development of revised interview questions. The table displays the interview questions corresponding to each research objective (RO).

The data collection for this study involved conducting interviews online with respondents from HRM departments of 14 firms and 8 Government ministries in Saudi Arabia. The interviews were meticulously recorded and transcribed to guarantee precision and fidelity. The participants were provided with the necessary ethical documentation and expressed their agreement to the conditions outlined, which included the assurance that their personal information would remain confidential and that they would not disclose the details of the interview to any third party.

4.4. Analytical Technique

A thematic analysis was carried out. The goal of conducting a thematic analysis on interview transcripts was to identify recurrent themes that were connected to the reason for conducting the research. The transcripts of the interviews are then methodically categorized based on the reoccurring themes, patterns, and significant insights that emerge from the analysis (see

Table 2. The synthesis of main themes.

Subthemes	Sample Quotations	Coded Themes
Objective 1: Investigate Cultural Norms, Values, and Religious Sensitivities
Cultural Values	“It’s very important in our culture that we treat our older workers with dignity”.	Respect for Elders
Religious Practices	“We rearrange schedules to accommodate religious observances when necessary”.	Ritual Adaptation
Policy Code	“Those who work for us can rest assured that our policy code adheres to Islamic practices”.	Respect Islamic costume
Challenges	“Finding a happy medium is challenging. We plan to modify how we assess productivity”.	Cultural Adaptation Challenges
Objective 2: Analyze Challenges and Opportunities of Cultural Adaptation
Consistency	“It can be difficult to ensure uniformity throughout the company”.	Consistent Adaptation
Morale Boost	“Employee satisfaction rose after we implemented these cultural shifts”.	Improved Morale
Leveraging Diversity	“When we modify our approach to human resources, our multicultural teams flourish”.	Diversity Benefits
Avoiding Tokenism	“It’s more than just checking off a list. We take effort to make sure the changes actually mean anything”.	Meaningful Adaptation
Objective 3: Examine Customization of HR Practices with Cultural Reflection
Employee Involvement	“The participation of workers is crucial. They shed light on how to harmonize cultural modifications, which is crucial”.	Employee Contribution
Balance	“Customization doesn’t have to lead to chaos. When it comes to cultural sensitivity, we try to strike a happy medium”.	Adaptation Balance
Leadership Role	“Leaders send a powerful statement when they advocate for and demonstrate cultural adaptation”.	Leadership Influence
HR Practices as Mosaic	“Imagine a mosaic, with each tile representing a different facet of culture”.	Mosaic of Adaptation
Objective 4: Assess Impact of Culturally Adapted HR Practices on Governance
Trust and Transparency	“Trust increases when we account for people’s different cultural backgrounds. It’s inevitable that openness will follow”.	Trust and Transparency
Reduced Resistance	“People are more open to change if they can see that changes are made with their values in mind”.	Change Acceptance
Sense of Belonging	“Cultural adjustments foster an atmosphere where workers know they are appreciated”.	Belonging and Value
Reporting Misconduct	“Workers are more likely to report problems when they feel the company values their cultural background”.	Reporting Encouragement

). The examination of the responses was carried out with the intention of determining whether or not there were any shared qualities, contradictions, or trends in regard to the responses. For each response, it was coded with R-x, where x represents the participant number and R stands for respondent.

According to Arifin [53], the fundamental goal of data analysis in the realm of qualitative research is to condense the collected data into a restricted collection of comprehensive topics, often comprising a range of five to seven themes. As a consequence of this, it was essential, within the context of the current inquiry, to arrange and alter the data that had been obtained in order to make room for subsequent analysis. The technique that was described above entailed improving the quality of the transcribed interviews by creating cohesive connections among the many themes that were chosen. The most common motifs have been included in Table 2, which has examples of each.

5. Data Analysis and Presentation of the Results

The focus of the analysis of the data is on the directions in which the research aims should proceed. When it comes to the objectives of the research, they were formulated in such a way that each aim concentrates on another subject for discussion. Therefore, the themes for each of the study objectives are as follows: “RO1: Cultural Norms, Values, and Religious Sensitivities prevalent”; “RO2: Enhance employee engagement and performance”; “RO3: Customize HR practices to reflect local cultural”; and “RO4: Assess the impact of culturally adapted HR practices”.

5.1. Cultural Norms, Values, and Religious Sensitivities Prevalent

The primary factors contributing to the attainment of the first research objective involve the examination of cultural norms, values, and religious sensitivities that are present in Saudi Arabia and their influence on human resource practices and governance. A considerable amount of responses were obtained from the 35 participants. The findings indicate that cultural norms in Saudi Arabia place a strong emphasis on the veneration of older individuals and the significance of familial bonds. The aforementioned values exert an influence on individuals’ approaches to human resource decision-making and communication. Respondents R-4, R-6, R-13, and R-16 have provided comments that are closely related to a specific response from respondent R-9, who expressed that

“Respect for senior staff is highly valued in our organization. Because of this, we have to rethink our approach to team building and leadership”.

This implies exhibiting reverence towards senior personnel within a specific cultural context. The level of respect has a substantial impact on the manner in which teams are structured and leadership decisions are formulated within a certain cultural framework. Likewise, it has been disclosed that the incorporation of religious practices influences the tactics employed for the establishment of efficient governance through human resource management practices. Several respondents (R-1, R-14, R22, R33) share similar responses with respondent R8, indicating that

“We view faith as a powerful tool for managing employees, complete with regular feedback, goal-setting, and evaluations of progress. Using Islamic principles to create open and honest appraisals of performance”.

This implies that an efficient governance approach through human resource management practices highlights the significance of integrating religious concepts, namely Islamic values, within the performance management system. This entails the adoption of strategies such as consistent feedback, objective establishment of objectives, and comprehensive assessments of performance, all while ensuring that performance evaluations are handled in a just and transparent manner, in accordance with the norms of Islamic ethics. Moreover, the incorporation of religious sensitivity constitutes a crucial aspect in the formulation of policy codes. They guarantee that personnel conform to Islamic values.

The focus of the analysis centers on the effects of good governance. The significance of culture and religion as influential factors in shaping HR practices and governance decisions inside a business was emphasized. The comprehension and acknowledgement of cultural values and norms are crucial in upholding impartiality and equality in human resource practices and governance endeavors. Neglecting to adhere to this practice may result in discrepancies and disputes that impede the efficacy of governance. It is imperative to establish congruence between human resource practices and the objectives and principles of the firm, while simultaneously upholding religious convictions, in order to sustain a workplace atmosphere that fosters unity and inclusivity. Ineffectively managing these sensitivities might result in discriminatory practices or exclusionary measures, compromising the fundamental tenets of good governance.

5.2. Enhancement of Employee Engagement and Performance

The primary factors contributing to the attainment of the second research objective are the augmentation of employee engagement and performance within the context of Saudi Arabia, hence influencing human resource practices and governance. The analysis of problems and opportunities associated with the integration of cultural adaptation into HR policy is of utmost importance in the context of enhancing employee engagement and performance. According to one participant (R-2), it is disclosed that

“Making sure all of your teams and departments are on the same page with their cultural adjustments can be difficult. We don’t want to set a precedent of inequality”.

This implies that ensuring consistent and uniform application of cultural adjustments or changes across various departments and teams within a company poses a challenge. The primary objective is to mitigate the potential for disparities or inequities in the implementation of these cultural adjustments throughout different segments of the business. Put simply, organizations strive to guarantee uniformity in the implementation of cultural changes, aiming to minimize any disparities or variations experienced by individuals within the organization.

Maintaining uniformity within a company can often provide challenges. Companies make concerted efforts to guarantee that all employees derive advantages from these changes. Several participants share a similar perspective on this matter, including respondents R-5, R-7, R-10, R-12, R-19, and R-20. However, respondent R-35 presents an alternative viewpoint:

“We observed that regulations that suited different cultures had a positive effect on morale. When employers cater to their workers’ cultural preferences, morale soars”.

This implies that the firm has noted that when they customize their rules and practices to correspond with the cultural backgrounds and preferences of its employees, it yields a favorable effect on employee morale. In essence, when employees see that their cultural needs and values are acknowledged and honored by the firm, they are inclined to have a greater sense of appreciation and job satisfaction. Consequently, this phenomenon engenders elevated levels of morale, thereby potentially yielding augmented levels of motivation, productivity, and overall job satisfaction within the labor force.

The implementation of cultural modifications by the organization resulted in a discernible improvement in employee satisfaction. The organization values the fact that employees demonstrate concern for their overall welfare. A prevailing perspective among the respondents is that there exists an opportunity to use the advantages brought about by diverse teams. When organizations modify their human resource procedures, they effectively leverage the capabilities and talents of people from diverse backgrounds. One participant (R-15) disclosed that

“When we modify our approaches to human resources, our multicultural teams flourish. It’s incredible to witness firsthand how diversity of thought sparks innovation”.

This implies that when organizations adapt their human resource (HR) processes to accommodate the variety of their teams, there is a notable enhancement in the performance of these varied teams. The term “thrive” connotes that these teams not only exhibit efficient functioning but also demonstrate exceptional performance. The aforementioned statement further emphasizes that the presence of varied experiences and opinions within these teams contributes to the cultivation of a dynamic and innovative atmosphere. The amalgamation of diverse viewpoints and backgrounds ultimately amplifies ingenuity, hence fostering inventive resolutions and methodologies for a multitude of obstacles and endeavors.

Another problem linked with organizational practices in the field of human resource management (HRM) is the need to prevent tokenism. The organization seeks to authentically incorporate cultural modifications rather than only superficially implementing them. One participant (R-21) disclosed that

“It’s more than just checking off a list. We take care to guarantee that the changes are functional, not only attractive”.

This suggestion highlights the organization’s dedication to surpassing mere cosmetic adherence to specific rules or standards, commonly referred to as “box-ticking”. On the contrary, their commitment is in the creation of modifications that are both meaningful and substantial. The term “meaningful” connotes that these alterations possess an authentic intention and importance, surpassing mere symbolism or superficiality. The company prioritizes the implementation of meaningful reforms, particularly in relation to diversity and inclusion, in order to generate substantial and beneficial outcomes, as opposed to only engaging in cosmetic or symbolic actions. The desired outcome of these changes is to yield concrete advantages and enhancements, rather than merely giving the appearance of adherence.

The solution pertaining to the attainment of objective 2 collectively focuses on the significant influence of culturally sensitive human resource practices on the promotion of effective governance within a company. The implementation of HR strategies that are attuned to cultural sensitivities plays a significant role in fostering a favorable work environment and enhancing the effectiveness of governance. This observation highlights the correlation between cultural sensitivity and effective governance. Culturally sensitive practices foster an inclusive and harmonious work environment, being a crucial element of effective governance. This statement highlights the organization’s dedication to incorporating cultural sensitivity into its human resource policies and processes, acknowledging the advantageous influence it has on employee engagement and performance. The authors also recognize the difficulties associated with these approaches and underscore their significance in cultivating a favorable work atmosphere and improving overall governance efficacy. The integration of cultural sensitivity with principles of good governance exemplifies a comprehensive and inclusive approach to organizational administration.

5.3. Customize HR Practices to Reflect Local Cultural Issues

The need to customize HR procedures to incorporate local cultural issues while ensuring consistency with business objectives cannot be overstated in the realm of governance. The accomplishment of research objective 3 is of utmost importance. Typically, the responses pertaining to this matter entail the active involvement of employees in the process. In this manner, companies customize their HR procedures to align with cultural requirements, while also ensuring that these policies effectively contribute to the achievement of business objectives. The user’s text is already academic in nature. No rewriting is necessary. One participant (R-18) discloses that

“The participation of workers is crucial. They shed light on how to better coordinate cultural shifts with long-term objectives”.

This underscores the need to engage employees in the organizational culture change process. The inclusion of employees’ thoughts and viewpoints is crucial in order to align these modifications with the strategic objectives of the firm. Employee participation is crucial in ensuring the successful integration of cultural changes into the organization’s overarching strategic direction. Moreover, organizations strive to achieve equilibrium by tailoring certain elements while maintaining consistent basic principles. In this manner, cultural respect is upheld while simultaneously maintaining consistency. One participant disclosed [R-11] that

“Changes need not lead to breakdowns. We strike a balance between localizing for the culture and keeping the structure of the company intact”.

This suggests that organizations should prioritize the incorporation of personalized changes to meet cultural differences, while also ensuring that they maintain a sense of equilibrium. This implies that individuals exhibit caution in order to prevent the occurrence of chaos or confusion within the organization. The organization endeavors to accommodate cultural requirements while upholding the fundamental structure and systematic nature of its operations. Moreover, leadership assumes a crucial function in providing guidance for endeavors related to cultural adaptation. The commitment and example established by companies establish the prevailing atmosphere within the entire firm. One of the respondents [R-17] indicates that

“Leaders send a powerful message to the rest of the firm when they actively promote and demonstrate cultural adaptability”.

This implies that organizations undervalue the significant impact of leadership in fostering cultural adaptation inside the company. The act of leaders openly demonstrating and endorsing cultural adaptation conveys a significant message to the entire organization. This statement underscores the significance of accepting cultural diversity and promotes the adoption of such behavior among employees, thereby cultivating a more inclusive and culturally sensitive business culture. From an alternative perspective, the human resource practices implemented by firms can be likened to a mosaic, wherein each individual element represents a cultural factor, while simultaneously maintaining a coherent alignment with organizational objectives. One participant [R-1] discloses that

“Imagine a mosaic, where each tile stands for a different facet of culture. They make a lovely and harmonious whole when put together”.

This suggests that organizations employ the metaphor of a mosaic to communicate the concept that the convergence of diverse cultural subtleties results in a cohesive and integrated organism. Similar to how individual tiles add to the overall aesthetic appeal of a mosaic, the integration and respectful acknowledgement of cultural variations within an organization or community contribute to a diverse and harmonious collective entity.

The comments collectively highlight the organization’s dedication to harmonizing human resource processes with cultural norms and strategic objectives, all while upholding principles of justice and uniformity. Furthermore, they acknowledge the significance of leadership in promoting cultural sensitivity and its advantageous effects on effective governance and the unity of a company. The implementation of this comprehensive strategy exemplifies a commitment to advancing concepts of effective governance within a society characterized by cultural diversity.

5.4. Assessing the Impact of Culturally Adapted HR Practices

The primary factors contributing to the attainment of the final research objective are the evaluation of the influence of culturally tailored human resource strategies on governance outcomes, including transparency, accountability, and ethical conduct. Cultural adaptation serves to bolster transparency within a business by fostering a sense of value and trust among employees. Individuals are more inclined to participate in open conversation. Several respondents, including R-1, R-6, and R-19, share the same perspective on this issue. However, it is worth noting that respondent R-11 presents a different viewpoint:

“There will be more trust between us if we take cultural sensitivity into account. By treating each worker with respect, transparency is fostered naturally”.

This implies that fostering an environment of cultural sensitivity inside the firm contributes to the establishment of trust among employees. Transparency is an inherent outcome of recognizing the viewpoints and cultural backgrounds of all employees once trust has been established. Cultural sensitivity is fundamentally associated with the establishment of trust, which subsequently fosters transparency within the organizational context. Likewise, it has been seen by organizations that the use of culturally tailored human resource practices can effectively mitigate resistance to change. Employees possess a comprehensive understanding that alterations are in accordance with their deeply held principles and beliefs. One participant disclosed that

“When employees can see that changes are made with their values in mind, they are more likely to embrace the change. A more optimistic outlook on organizational change is fostered as a result”.

This finding indicates that employees are more inclined to have a favorable attitude towards organizational changes when they think that these changes align with their values and cultural preferences. Put simply, when adjustments take into account and coincide with the values of employees, it facilitates smoother transitions and enhances the likelihood of the workforce willingly accepting organizational shifts.

Another noteworthy concern pertains to the concept of “ethical behavior”, which is reinforced when employees experience a profound feeling of affiliation. Cultural adaptations have a significant role in fostering a sense of belonging. One participant disclosed that

“Cultural adjustments foster an atmosphere where workers feel appreciated. Because of this, morality and accountability flourish naturally”.

This indicates that cultural sensitivity training helps create a work climate where all employees feel valued. This, in turn, encourages workers to act ethically and gives them a greater feeling of responsibility. Culture-specific adjustments help foster an atmosphere at work that values honesty and responsibility.

Businesses found that when HR policies and procedures were modified to local customs, workers were more likely to come forward with allegations of wrongdoing. The results of one survey showed that

“When workers feel their cultural identities are valued by management, they are more inclined to speak up when problems arise”. When employees think that their firm demonstrates respect for their cultural backgrounds, they are more likely to exhibit a willingness to disclose difficulties or challenges. This phenomenon can be attributed to the fact that the cultivation of respect within the workplace promotes a heightened sense of accountability among employees, hence motivating them to actively engage in the identification and resolution of organizational challenges.

5.5. Findings from DEMATEL Evaluation

“The key sustainable strategies criteria for effective human resource management practices has been uncovered”, according to the qualitative interview summary. Four primary criteria were identified: “Cultural Norms”, “Cultural Adaptation”, “Cultural Reflection”, and “Cultural Governance”. As a result, the DEMATEL technique has been applied to uncover the main interaction among the criteria and also the cause and effect of these criteria.

“The key sustainable strategies criteria for effective HRM practices” is a title or heading that provides an overview of the fundamental components that are required for human resource management practices to be successful and to last for an extended period of time. For the purpose of the DEMATEL analysis, a code that is appropriate for these four criteria has been made available. As a result,

Table 3. The code for the criteria.

Criteria	Code
Cultural Norms	CN
Cultural Adaptation	CA
Cultural Reflection	CR
Cultural Governance	CG

provides the names of each of them together with the criteria that have been coded.

This research operational definition of “Cultural Norms” refers to the collective standards, beliefs, and behaviors that are widely acknowledged and followed within a Saudi Arabi’s community or society. In the realm of human resource management, having a comprehensive grasp of cultural norms is essential for establishing an inclusive workplace atmosphere and promoting efficient communication and collaboration among individuals with varying backgrounds.

Similarly, the “Cultural Adaptation” views from this research are the act of modifying one’s behavior, beliefs, and expectations to align with the cultural practices, norms, and expectations of a new or unfamiliar cultural setting. In the realm of HR management, cultural adaptation refers to the implementation of policies and procedures that acknowledge and accommodate the cultural variety of employees. This approach aims to enhance employee engagement, contentment, and productivity.

The “Cultural Reflection” as defined by this research is the process of carefully analyzing and assessing the cultural dynamics inside an organization, which includes its values, norms, and practices. HR management may foster cultural introspection by facilitating transparent dialogues, feedback loops, and programs that foster self-awareness and comprehension of cultural disparities among employees.

Finally, “Cultural Governance” is operationally defined by this research as the methodical administration and supervision of cultural elements within an organization to guarantee they are in line with its values, aims, and objectives. In the realm of HR management, cultural governance refers to the creation of policies, procedures, and systems that aim to foster diversity, justice, and inclusion. It also involves dealing with cultural matters and conflicts in a just and transparent manner.

A Likert scale that spanned from 0 (which indicated “no influence”) to 4 (which meant “high influence”) was used to link the items that were utilized for the DEMATEL analysis. This scale was used for each and every question. Each and every one of the thirty-five experts provided their responses, which were subsequently incorporated into a non-negative direct relation matrix with dimensions of n × n, based on Equation (1), within a spreadsheet that was developed using Microsoft Excel (refer to the matrices that are provided below (Figure 1)):

The average of the n × n non-negative direct relation matrix, which is the mean total of decision matrices (Z), is derived from Equation (2) and presented in the matrices below:

$$\mathrm{Z}=\left[\begin{array}{l}0.00 2.71 2.54 2.09\\ 2.29 0.00 2.51 2.86\\ 2.46 2.54 0.00 2.69\\ 2.57 2.46 2.09 0.00\end{array}\right]$$

Equation (3) was used to calculate the total decision normalized direct influence matrix. The reason for the calculation of the total decision normalized direct impact matrix serves as a basic method of streamlining the data to understand the complex relationships and dynamics that exist inside a decision-making environment. This, in turn, ultimately contributes to improved decision-making and problem-solving abilities.

The first thing that has to be performed is to determine the total number of rows and columns in order to determine which cell in a matrix has the highest value. After that, all of the values of the matrices should be divided by the largest number in order to obtain the result, which is the normalized matrix D that is presented below:

$$\mathrm{D}=\left[\begin{array}{l}0.0000 0.3524 0.3303 0.2718\\ 0.2978 0.0000 0.3264 0.3719\\ 0.3199 0.3303 0.0000 0.3498\\ 0.3342 0.3199 0.2718 0.0000\end{array}\right]$$

For the purpose of generating the total relation matrix, it is necessary to have an identity matrix i. The total relation matrix is constructed using the identity matrix serving as a baseline or starting point for the construction of the matrix. A square matrix is commonly used to represent the identity matrix in the context of DEMATEL. In this matrix, all of the diagonal members are equal to 1, while all of the other elements are equal to 0. The absence of any links or influences between the factors is represented by this matrix because it is empty. This identity matrix not only assists in determining the direct ties that exist between components, but it also provides assistance in determining the indirect relationships that exist between factors.

$$i=\left[\begin{array}{l}1 0 0 0 0\\ 0 1 0 0 0\\ 0 0 1 0 0\\ 0 0 0 1 0\\ 0 0 0 0 1\end{array}\right]$$

Similarly, after establishing the identity matrix, the next step is to build a matrix by subtracting the identity matrix from the direct relationships matrix I − D. The new matrix will establish both the direct and indirect relationship. Relationships that are direct indicate the immediate impact of one element on another, while indirect interactions indicate the impact that one factor has on another through intermediate factors. By performing matrix subtraction between the identity matrix and the total relation matrix, it is possible to isolate and analyze the direct relationships between factors individually (based on Equation (4)).

$$I-D=\left[\begin{array}{l}1 -0.352405722 -0.33029909 -0.271781534\\ -0.297789337 1 -0.326397919 -0.371911573\\ -0.319895969 -0.33029909 1 -0.349804941\\ -0.33420026 -0.319895969 -0.271781534 1\end{array}\right]$$

The next is to take the inverse of the matrix above ${\left(I-D\right)}^{-1}$. One way to normalize the matrix is by taking its inverse, which ensures that the influence values are confined to a standardized range, making understanding and comparison easier. The use of the inverse operation converts the values in the matrix into influence scores, which accurately represent the magnitude and direction of effect between factors.

$${(I-D)}^{-1}=\left[\begin{array}{l}8.427453301 7.984950137 7.535896833 7.89621551\\ 7.879325949 8.953394376 7.748569499 8.181814187\\ 7.918140889 8.229400053 8.528958454 8.196085416\\ 7.489026174 7.769326154 7.315248244 8.483791324\end{array}\right]$$

After finding the inverse matrix, the next step is to establish the total relation matrix T using Equation (4). This matrix is an essential tool for analyzing the interrelationships among various factors or criteria within a complex system. The total relation matrix $T=D{\left(I-D\right)}^{-1}$ provides a comprehensive analysis of the relationships between factors, offering valuable insights into the dynamics of the system being studied.

$$T=\left[\begin{array}{l}7.4275 7.9850 7.5359 7.8962\\ 7.8793 7.9534 7.7486 8.1818\\ 7.9181 8.2294 7.5290 8.1961\\ 7.4890 7.7693 7.3152 7.4838\end{array}\right]$$

From the total relation matrix T, the criteria that are pertinent to the career path can be determined by Equation (5), where r and c values represent the magnitude and orientation of the associations between criteria. Examining the differences in rows and columns, their sum offers valuable understanding of the cause-and-effect connections between crucial elements and the career paths of academic employees in Saudi Arabia. Negative differences emphasize criteria that are predominantly influenced by other criteria of the academic setting, whereas positive differences show criteria that have a stronger impact on influencing career paths. Gaining insight into these processes can provide valuable information for implementing strategic interventions and policies that aim to foster career progression and empowerment within the academic sector in Saudi Arabia.

In this particular instance,

Table 4. The complete relation status among the criteria.

Criteria	ri	cj	ri + cj	ri − cj	Identity
CN	30.84452	30.71395	61.55846	0.130569	Cause
CA	31.7631	31.93707	63.70017	−0.17397	Effect
CR	31.87258	30.12867	62.00126	1.743912	Cause
CG	30.05739	31.75791	61.8153	−1.70051	Effect

demonstrates that there is a negative difference in two criteria. This indicates that these criteria have a greater impact as an outcome rather than as a factor. Within this particular framework, it suggests that the “Cultural Adaptation” and “Cultural Governance” are greatly impacted by “Cultural Norms” and “Cultural Reflection”. These criteria can serve as outcomes or consequences of the “Cultural Norms” and “Cultural Reflection” criteria. This means that improvements in “Cultural Adaptation” and “Cultural Governance” are likely to occur as a result of changes in the aspects of “Cultural Norms” and “Cultural Reflection”.

On the other hand, a positive difference suggests that the criterion has a greater impact as a cause rather than as an effect. Criteria such “Cultural Norms” and “Cultural Reflection” can have a considerable impact on Cultural Adaptation” and “Cultural Governance”. The identification of positive differences reveals the criteria that influence changes in many elements of “Cultural Adaptation” and “Cultural Governance”, indicating specific areas where interventions or initiatives should be focused to improve HRM practices.

The final stage of DEMATEL entails creating an interaction diagram. To do this, the research must determine a threshold value (α) by utilizing Equation (6). Identifying major linkages among components inside the system is essential. The threshold value serves to differentiate between robust and feeble interactions, facilitating a more lucid reading of the interaction diagram. The threshold value (α) is established to distinguish between impactful and non-impactful links. Therefore, the threshold value obtained while using Equation (6) is “7.783599781” (see

Table 5. The criteria values for interaction diagram.

Criteria	CN	CA	CR	CG
CN	7.4275	7.9850	7.5359	7.8962
CA	7.8793	7.9534	7.7486	8.1818
CR	7.9181	8.2294	7.5290	8.1961
CG	7.4890	7.7693	7.3152	7.4838

). The bolded values are the values that are above the threshold. Criteria that have connection strengths above the threshold value are regarded to have substantial interactions, whereas those with connection strengths below the threshold value are deemed to have negligible interactions.

The interaction diagram shown in Figure 2 makes it abundantly evident, through the use of an arrow, that “Cultural Reflection” exerts a more significant influence on all of the criteria. The reason for this is that there are three links emanating from it that point to all of the other criteria, but there is no arrow that points to it. For that reason, this research can conclude from the DEMATEL evaluation that “Cultural Reflection” is the key sustainable strategies criterium for effective human resource management practices in Saudi Arabia. This means that carefully analyzing and assessing the cultural dynamics within an organization in Saudi Arabia, which includes the Saudi values and practices of the organization, encourages cultural introspection by making it easier for employees to understand the cultural differences that exist among them.

6. Discussion

The primary outcome of this study is linked to the attainment of the research goals. The primary research objectives are to analyze the outcomes within the specified scope. The cultural significance of demonstrating reverence towards older individuals within the Saudi Arabian society has been un-veiled. This statement highlights the significance of cultural norms in shaping human resource practices and governance. This discovery is linked to the “Cultural Adaptation Theory”. The correlation lies in the adaptation of HR processes to incorporate the principle of respecting elders, which in turn promotes a healthy work environment and enhances governance effectiveness. This implies that when firms modify their human resource strategies to align with cultural demands, it frequently results in increased levels of employee engagement and satisfaction. Consequently, this phenomenon leads to the enhancement of staff morale and, ultimately, augments the overall effectiveness of governance inside the firm. To clarify, the alignment of human resource strategies with cultural requirements can yield favorable outcomes for employee well-being and, as a result, governance results.

In relation to the attainment of the remaining objectives, an additional significant discovery pertaining to them is linked to the concept of “Diversity Benefits”. This finding underscores the merits of harnessing heterogeneous teams by means of culturally adapting human resource methods. This suggests that acknowledging the merits of diversity underscores the benefits of employing heterogeneous teams inside a business. The aforementioned benefits are frequently attained through the modification of human resource processes in order to meet diverse cultural backgrounds and individual requirements. The proposition posits that the implementation of cultural adaptation within human resource practices can enable firms to effectively leverage the benefits of diversity, hence exerting a favorable influence on governance and overall performance. This assertion is substantiated by the theoretical framework known as “Diversity and Inclusion Theory”. Organizations can harness the potential of diverse view-points, resulting in creativity, employee satisfaction, and effective governance, by modifying their HR policies to accommodate individuals from different backgrounds.

Additionally, it has been disclosed that the concept of “Meaningful Adaptation” emphasizes the significance of authentic cultural adaptations that provide substantial worth, as opposed to cosmetic modifications. It is imperative to underscore the significance of avoiding superficial or token gestures while implementing cultural modifications, as emphasized by T. On the contrary, it is imperative that mission statements possess significance and authentically align with the cultural principles and requirements of the firm and its workforce. The emphasis on meaningful adaptation holds significance in the realm of governance as it guarantees the authentic integration of cultural concerns into an organization’s procedures, hence potentially enhancing decision-making processes and improving the efficacy of governance. This assertion is substantiated by the “Ethical Governance and Compliance Theory”. The demonstration of authenticity in cultural adaptations is indicative of ethical conduct, fostering trust among employees and facilitating the establishment of effective governance. These interpretations offer a more profound comprehension of human resource management (HRM) within the framework of the study objectives and related theories. The authors illustrate the manner in which each subtheme exemplifies the complexities involved in adjusting human resource procedures to conform with cultural norms, bolster employee engagement, and contribute to efficient governance within the context of Saudi Arabia.

The study’s findings can be universally applied to the relevance of cultural adaptation, pertaining specifically to cross-cultural situations. This demonstrates that cultural adaptation is an essential component of human resource management (HRM) in any multicultural setting. Organizations globally encounter difficulties regarding cultural integration, rendering the findings applicable to various geographical and cultural settings. Moreover, as globalization continues to advance, organizations across different nations are encountering increasingly heterogeneous workforces. The focus on cultural norms and introspection in the study offers valuable perspectives to properly manage this difference. The findings also emphasize the significance of building and contemplating cultural norms to enhance organizational adaptability. This notion is relevant to organizations in many industries and regions that want to improve their HRM processes. The study presents a framework for HR strategies that may be applied to various organizational cultures and structures worldwide by demonstrating the impact of cultural norms and reflection on governance and adaptation.

The management significance of this study lies in its practical applications in various areas, including cultural adaptation, training and development, strategic human resource interventions, reflective practices, diversity and inclusion, and strategic HR interventions. These applications are the reasons why it has important implications for management. Managers may enhance their organization’s performance, agility, and cohesiveness by incorporating these findings into their HRM processes. These approaches not only enhance HR outcomes in the near term but they also contribute to the long-term success of the organization. Managers who understand the impact of cultural norms and the importance of reflection in cultural adaptation and governance may effectively foster an inclusive and flexible organizational culture. Organizations may improve employee happiness and encourage the inclusion of a diverse workforce by actively shaping and articulating their perspectives on cultural norms.

Managers have the power to create a work environment that includes everyone by encouraging the blending of different cultures. This helps to decrease cultural conflicts and improve overall harmony in the workplace. Enhancing governance frameworks can enable managers to enhance organizational coherence and performance by ensuring constant adherence to cultural standards. Managers may improve the efficiency and longevity of HR efforts by ensuring they are culturally aware and self-reflective. Management can achieve improved employee engagement and retention by establishing strategies and policies that promote diversity and inclusion. Managers can steer organizational change processes to be more intentional and in line with cultural norms, therefore ensuring the efficacy and durability of adaptations. Managers possess the power to improve a company’s effectiveness by creating training programs that promote cultural competence and self-reflective skills.

6.1. Comparative Findings

Comparing this current study with other previous research studies, it was revealed that the research study conducted by Rajabpour et al. [59] emphasized the significance of green training and development in the petrochemical industry as a crucial factor for implementing green HRM, based on the findings from DEMTEL. The present study’s DEMATEL results broaden the scope of green HRM by incorporating cultural sustainability, highlighting the importance of cultural norms and self-reflection in HRM practices. Similarly, the study conducted by Tooranloo et al. [60], through the use of DEMATEL, discovered that the environmental aspect has a substantial impact on sustainable HRM. This study further enhances the current understanding of DEMATEL by investigating the impact of cultural factors on the efficacy of HRM approaches. Abdullah and Zulkifli [61] recognized education as a crucial element in the management of human resources. The current study provides evidence to support the notion that cultural norms and reflection, which are considered forms of organizational education, play a vital role in cultural adaptation and governance.

Expanding on the comparison between the findings of this study and earlier studies, it was discovered that Chou et al. [62] recognized infrastructure as a vital determinant in guaranteeing the sustainability of human resources in the scientific and technology domain. The current research enhances our understanding by emphasizing the less tangible aspects of HRM, such as cultural norms and reflection practices, which are equally essential for guaranteeing long-term sustainability. The study conducted by Agarwal and Kapoor [64] aims to analyze obstacles in green HRM. In contrast to this research, their study specifically investigates the connections between cultural components, which is in line with their research objectives. Both studies highlight the importance of understanding and addressing interdependencies in order to improve HRM processes. Yang et al. [65] found that government policies play a crucial role in hospital human resource management (HRM). The current study’s emphasis on governance aligns with the idea that effective governance systems, influenced by cultural norms and careful deliberation, are essential in many circumstances.

The research conducted by Siregar and Dachyar [66] highlighted the need to present data in a manner that is of superior quality in order to improve HR performance. The current study’s focus on cultural norms and reflection can be seen as a form of qualitative data that, when accurately provided, has the potential to enhance HR performance. Similarly, Pandey et al. (2021) [67] discovered that improving leadership skills is a crucial requirement in HRM. This finding aligns with the present study and reinforces the notion that HRM leadership should prioritize the cultivation of cultural norms and reflective practices to foster sustainable and effective HR initiatives.

6.2. Theoretical Implication

The research uncovering the key sustainable strategies criteria for effective human resource management (HRM) practices, specifically focusing on the influence of “Cultural Norms”, “Cultural Reflection”, “Cultural Adaptation”, and “Cultural Governance”, provides significant theoretical implications. These findings advance the current discussion on HRM and sustainable strategy by integrating cultural factors into HRM theories. The study underscores the importance of cultural factors—specifically cultural norms and reflection—in shaping HRM practices. Traditionally, HRM theories have focused on structural, procedural, and policy aspects. By highlighting cultural norms and reflection, this research integrates a more nuanced understanding of cultural dynamics into HRM theories. This research enriches HRM theories by incorporating cultural dimensions, suggesting that effective HRM cannot be fully understood or implemented without considering the cultural context of the organization. Sustainable HRM focuses on long-term strategies that ensure the well-being of employees and the sustainability of the organization. This research extends this literature by identifying specific cultural criteria that influence sustainable HRM practices. It provides a framework for understanding how cultural norms and reflective practices contribute to sustainability in HRM, thereby expanding the literature to include cultural sustainability alongside environmental and economic sustainability.

Similarly, the findings of this research offer a theoretical framework that connects cultural adaptation and governance with HRM practices. This framework helps explain how cultural factors impact the ability of organizations to govern and adapt to changes effectively. It advances the theoretical discourse by providing a clear link between cultural adaptation, governance, and HRM, suggesting that governance structures and adaptive capabilities are deeply influenced by cultural norms and reflective practices. Diversity- and inclusion-inclined theories often emphasize the importance of managing diverse workforces and creating inclusive environments. The research findings show that cultural norms and reflection are critical for effective cultural adaptation and governance, which are essential for diversity and inclusion. It integrates cultural sustainability into D&I theories, suggesting that fostering inclusive cultural norms and engaging in reflective practices are crucial for achieving meaningful diversity and inclusion in organizations.

Meaningful adaptation involves intentional, significant changes aligned with organizational values and goals. By demonstrating the impact of cultural norms and reflection on cultural adaptation, the research provides insights into how organizations can engage in meaningful adaptation. The research also advances the theoretical understanding of meaningful adaptation by highlighting the role of cultural factors, suggesting that adaptation must be culturally informed and reflective to be truly meaningful and effective. Finally, by highlighting the importance of reflective practices, the research advances theoretical discussions on continuous improvement and learning in HRM. Reflective practices help organizations adapt their cultural norms and strategies, ensuring that they remain relevant and effective in a changing environment.

6.3. Methodological Implication

Human resource management (HRM) procedures can encompass intricate and interconnected elements that provide challenges for analysis using conventional approaches. The capability of DEMATEL to manage complexity and uncover the interconnectedness of elements makes it a valuable instrument for conducting research in the field of human resource management (HRM). The application of DEMATEL in analyzing the connections between cultural characteristics in HRM practices offers a valuable methodological contribution to the existing body of literature. This methodology enables a comprehensive examination of intricate cause-and-effect connections. This study advocates for the incorporation of DEMATEL and related approaches in future research on human resource management (HRM) to investigate the complex interconnections among different HRM elements. This will contribute to strengthening and deepening the theoretical understanding of HRM.

The research utilizes DEMATEL to emphasize the significance of comprehending both the immediate and indirect impacts of different HRM criteria. This approach enables researchers to differentiate between cause and effect, offering a more profound understanding of the underlying causes of HRM difficulties and the efficacy of various strategies. Future research in the field of human resource management (HRM) can benefit from integrating causal analysis methodologies such as DEMATEL. This approach allows for the identification and understanding of the fundamental dynamics of HR practices. This can result in more focused and efficient interventions, as researchers can identify the most relevant components and their interconnections. An important benefit of utilizing DEMATEL is its capacity to visually depict the interconnections among various criteria. This visual depiction facilitates the clear communication of intricate interdependencies to both academic and practitioner audiences.

6.4. Limitations and Future Research Directions

The study was carried out within a distinct cultural and organizational framework, with a primary emphasis on Saudi Arabia. The cultural, economic, and legal circumstances of different locations may render the cultural norms, customs, and governance systems of Saudi Arabia inapplicable. The findings may lack broad generalizability, thereby restricting their usefulness to contexts beyond Saudi Arabia. The DEMATEL technique utilizes expert judgement to assess the interrelationships among criteria. This introduces a degree of subjectivity, as the outcomes are contingent upon the viewpoints and proficiency of the chosen participants. The presence of bias in expert judgements has the potential to impact the accuracy and dependability of the findings. This study concentrated on a distinct set of criteria pertaining to cultural norms, introspection, adjustment, and governance. The HRM did not take into account other important elements such as technical improvements, economic issues, and employee well-being. The narrow focus may fail to consider other significant elements that impact the effectiveness of HRM procedures. Cultural norms and behaviors are subject to change and can undergo evolution over time. The study offers a momentary glimpse based on present circumstances, but these variables have the ability to alter, hence impacting the significance of the conclusions in subsequent times. The ever-changing characteristics of cultural elements can restrict the long-term relevance of the research findings.

Subsequent investigations should broaden the scope of the study to encompass diverse cultural and organizational settings in order to assess the influence of cultural norms and reflective practices on HRM in different locations. This can aid in the identification of universal principles and modifications particular to different regions. In order to mitigate the issue of subjectivity in DEMATEL, future studies could incorporate quantitative data with expert assessments. Integrating qualitative insights with quantitative data helps strengthen the reliability and trustworthiness of the findings. Additionally, future studies could utilize mixed-method approaches that integrate qualitative expert judgements and quantitative data analysis. Subsequent research endeavors should encompass a more comprehensive range of benchmarks, taking into account the technological, economic, and social aspects that influence human resource management (HRM). This comprehensive methodology can offer a more thorough and integrated comprehension of efficient HRM operations. Future studies could also identify and assess supplementary factors that impact human resource management (HRM) in order to develop a more comprehensive framework. Subsequent investigations should prioritize the development and evaluation of pragmatic interventions that align with the study’s discoveries, and examine case studies of organizations that effectively employ these interventions can offer practical insights and exemplary methods for this.

7. Conclusions

This study examined the complex relationship between HRM practices and effective governance in Saudi Arabia’s distinctive culture. The research has illuminated how businesses adapt to cultural differences to promote open, accountable, and ethical governance. The findings verified Cultural Adaptation Theory and deepened Saudization and Workforce Localization Theories. The study examined cultural adaptation issues, diversity, and ethical governance to show how HRM practices affect governance results. This research provides Saudi Arabian organizations with practical advice. The research shows that HR policies can incorporate cultural norms and religious practices to foster respect and trust. Transparent communication and accountability promote ethical governance, employee engagement, and organizational reputation. It was also shown that firms might intentionally adopt Saudization policies to develop Saudi talent. Expatriate knowledge and workforce localization are essential for regulatory compliance and a diverse, competent workforce. Leveraging worker diversity boosts innovation and creativity. HR methods that embrace diverse cultural origins allow firms to tap into various viewpoints, improving problem-solving and governance strategies. Leadership cultural adaptation sets the tone for the organization. Leaders that promote cultural sensitivity boost staff enthusiasm, engagement, and governance effectiveness. This research helps in understanding that effective HRM practices in Saudi Arabia require a thorough analysis of the cultural dynamics within an organization. This involves understanding the values and practices of Saudi employees and promoting cultural introspection. By fostering transparent comprehension of cultural disparities among employees, sustainable strategies can be developed.