This study aims to investigate the impact of disability employment on firm performance, highlighting the moderating role of technological innovation (TI).
Data from 93 firms listed on the Saudi Stock Exchange (Tadawul) from 2015 to 2023 were analyzed using a fixed-effects model to examine the effects of disability employment, TI and their interaction on performance measures, including return on assets, return on equity, Tobin’s Q and stock price returns.
Disability employment positively affects firm performance, with stronger effects in firms adopting higher levels of TI. Technology-intensive sectors and larger firms benefit more, reflecting their greater capacity to implement inclusive employment and technological advancements. Robustness checks, including subsample analyses and alternative models (two-stage least squares and generalized method of moments), confirm the reliability of the results.
Integrating disability employment with TI can enhance firm performance and support sustainable growth. Policymakers and practitioners are encouraged to promote inclusive employment alongside technological development to maximize these benefits.
This study offers novel insights into how disability employment and TI interact to shape firm performance, providing robust evidence from an emerging market context.
