Legal Dimension of Governance Effect on Strategic Decision making and Business Risk Reduction in Small Enterprises, the Kingdom of Saudi Arabia

Abstract

Many small enterprises lack efficiency of strategic decision making which led to enterprises’ performance risk, delay in enterprises’ growth and development as result of misleading information for financial reports users.  The study is an attempt to investigate to what extent the application of legal dimension of governance affects the strategic managerial decision making in small enterprises in the Kingdom of Saudi Arabia. The study aimed to identify whether the application of legal dimension of governance reduces business risk in the enterprises. The data analysis results show that there is a statistically significant relationship between the legal dimension of governance and the efficiency of strategic decision making in small enterprises in the Kingdom of Saudi Arabia. The results also confirm that  The legal dimension of governance reduces business risk in small enterprises in the Kingdom of Saudi Arabia.