The Role of Technological Capabilities in Enhancing Institutional Performance: An Applied Study on the Telecommunications Sector in the Kingdom of Saudi Arabia During the Period (2024–2025) from a Contemporary Islamic Perspective

Abstract

Abstract
This study aims to examine the role of technological capabilities in organizational performance across its comprehensive dimensions (efficiency, effectiveness, and excellence), as applied to the telecommunications sector in the Kingdom of Saudi Arabia. The study adopted a descriptive-analytical (quantitative) approach. Primary data were collected via a validated questionnaire using a comprehensive survey, with 180 questionnaires distributed to senior and middle management in Saudi telecommunications companies, limited to the Riyadh region.                                                                                                                              To analyze the data and test the hypotheses with high precision, structural equation modeling (SEM) was used via the AMOS software.                                                                                    The empirical results showed a strong, statistically significant positive effect (Estimate = 0.543, P = 0.012) of technological capabilities on overall organizational performance and across all its sub-dimensions. The results confirmed that technological capabilities are the primary driver for achieving superior performance. Theoretically, this study contributes to enriching the literature on dynamic capabilities by directly linking them to performance outcomes, and practically recommends the need for careful alignment of technological investments (such as artificial intelligence and cloud computing) with strategic objectives, the expansion of comprehensive process automation, and continuous investment in human resource training to ensure the sustainability of competitive advantage.