Doing favors in the Arab world

Abstract

This qualitative study analyzes the role of Wasta, a culturally based system of social networks of exchange among in-group members in the Arab world, as exemplified by three groups of Arabs in the Palestinian Authority, and then compares it to Guanxi (China), Sviazi (Russia), and Jaan-Pechaan (India). The use of social networks is a common business model around the world to accomplish business objectives and is especially relied upon in emerging economies where formal institutions are weak. It is important to understand the commonalities and differences in the use of reciprocity in various cultural contexts in order to conduct business effectively. Little research, however, has focused on the use of Wasta in the Arab world, a gap which this article addresses. We do so by analyzing the views of Wasta held by three important groups -leaders, business people, and students. While each type of reciprocity has its own unique characteristics, we focus on three interrelated constructs that have been found to underlie the use of reciprocity in various cultures. In the Arab world, these are Hamola, which incorporates reciprocity; Somah, that incorporates trust; and Mojamala, which incorporates empathy through social business networks. The aim of the paper is to illustrate the structure of Wasta and how it is perceived and constructed among three Arab social groups, and then compare and contrast it with social business models in three other high context cultures.

Informal Networks: Dark Sides, Bright Sides, and Unexplored Dimensions

“…However, little academic research shows how MNCs manage informality – that is, whether they have systemic processes for managing informal ties, as reported by Kim (2007) at Samsung, or whether these ties are hidden, taken for granted, discreetly avoided, or intentionally ignored. Although MNCs may be vertically integrated, the social environment in which they operate is heavily shaped by informal culturally embedded institutions (Berger et al, 2019). MNCs must therefore take a stand on their involvement in informal networking.…”

“…Some research has been conducted on blat and svyazi in Russia, Ukraine, the Caucasus, and other areas in the former Soviet Union (Ledeneva, 1998, 2006; Smith, Torres, Leong, Budhwar, Achoui, & Lebedeva, 2012; Yakubovich, 2005). Analyses have also been done on yongo networks in South Korea (Horak & Klein, 2016; Horak & Taube, 2016), clannism in Kazakhstan (Minbaeva & Muratbekova-Touron, 2013), jeitinho in Brazil (Park, Nunes, Muratbekova-Touron, & Moatti, 2018), and wasta in Arabic-speaking countries (Abosag & Lee, 2013; Afiouni & Nakhle, 2016; Al-Husan, Al-Hussan, & Fletcher-Chen, 2014; Berger, Herstein, McCarthy, & Puffer, 2019; Hutchings & Weir, 2006ab). Fragmentation in area studies is replicated in studies on informal networks, so the research on informal networks in an international context is in its infancy and lacks comparative analyses, as the international business literature predominantly focuses on guanxi .…”

Impact of gender on use of wasta among human resources management practitioners

“…The practice can take place within the same family or clan, as well as among friends, closed‐group members, acquaintances, or members of political parties. However, family is the cornerstone and primary channel of wasta (Berger, Herstein, McCarthy, & Puffer, 2019; Berger, Silbiger, Herstein, & Barnes, 2015).…”

Determinants of crowdfunding intention in a developing economy: ex-ante evidence from Bangladesh

“…Relationship trust is derived from repeated interactions between individuals over time and involves the senses of care and concern that arise from emotional bonds and social identification between the parties (Kang et al, 2016). Preferential treatment of in-group members within systems of exchange based on relationship trust has been identified in a variety of collectivistic cultural contexts and include "Guanxi" in China, "Sviazi" in Russia, "Wasta" in Arab countries, and "Jaan-Pechaan" in India (Berger et al, 2019).…”