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This study aims to examine how employee involvement, leadership, and innovation-related actions are linked in small businesses in Saudi Arabia. As Saudi Arabia works on diversifying its economy and considers innovation essential for growth, this research seeks to identify key factors and processes that promote innovation in companies. A survey was conducted across different small businesses in Saudi Arabia to gather information from employees. Advanced statistical methods, like structural equation modeling (SEM), were used to analyze the data and understand the relationships being studied. The results show a strong, positive link between how engaged employees are and their innovation-related actions in Saudi Arabian small businesses. The study also reveals how crucial leadership is in this process, demonstrating how leaders can either encourage or hinder employees' ability to contribute to innovation. These findings are useful for small business owners and leaders in Saudi Arabia, guiding them on how to foster an environment that supports innovation and improves their competitive edge in the global market. This research is also valuable for policymakers, business leaders, and academics interested in promoting innovation and long-term growth in this vital part of Saudi Arabia's economy.
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