Wasta as an Example of Informal Social Networks in Emerging Markets: Research Status and Suggestions for Future Directions

Abstract

World and emerging economies. His research brings a new dimension of understanding of how business is conducted in emerging economies and in the field of industrial marketing in cross-cultural contexts. It provides more insights about the transfer of practices across borders that enhances the understanding of global management.Dr Sa'ad Ali is a Senior Lecturer in Leadership and Management at the University of Derby (UK) with research interests in the fields of cross-cultural management and HRM. Sa'ad is specifically interested in researching management practices in the Arab Middle East and during the last 11 years has focused on exploring the impact of informal social networks on business practices with special interest in the Arab countries of the Middle East. He has worked and taught in several countries including Jordan, the United Kingdom, Turkey, China, and Belgium.

Talent retention challenges among non-family talented individuals: multiple case studies of family SMEs in Jordan

“…However, the use of family Wasta allowed family-related middle and senior managers to exercise power through social networks, thereby exploiting HR-related resources and organizational benefits at the expense of their non-family counterparts. This created injustice and inequality, contradicting the principles discussed in social exchange theory (Weir and Ali, 2022;Alsarhan and Al-Twal, 2023) regarding fairness based on competence and achievement between non-family competent employees and their employers. Consequently, fairness was compromised as interpersonal connections played a central role in the transmission of knowledge sharing, coaching, mentoring and learning opportunities (see Figure 2).…”

“…According to the literature, employees become dissatisfied when they observe other employees, who, due to family connections, receive benefits and promotions (Alsarhan and Al-Twal, 2023), thus undermining equality by providing advantages to individuals who may not necessarily deserve them (Weir and Ali, 2022; Tlaiss and Kauser, 2011). The findings highlight that Wasta becomes problematic as it fails to meet the standards of justice and equality, as indicated by Weir and Ali (2022).…”

“…Wasta favors individuals with strong connections but low personal merit over those with weak connections but high personal merit, resulting in unfairness for those who lack access to Wasta. Weir and Ali (2022) support this notion, stating that social networks in many Arab countries, including Jordan, heavily rely on family connections, influencing decisionmaking and significantly impacting individuals' career development. The term Wasta, closely associated with family business firms, sends negative signals to non-family competent employees due to inequality and unfairness, resulting in turnover of talented individuals (Abdalla et al, 1998).…”

Towards understanding the failure of new public management in the MENA region: Are informal networks to blame?

“…Therefore, it has become an obligation for global leaders and policymakers to understand how managers in this important region of the world perceive and react to contextual challenges and culture in their business practices. On top of these contextual challenges, and perhaps the most important one, is the pervasiveness of wasta informal network in the workplace (Aldossari & Robertson, 2016; Horak et al, 2023; Weir & Ali, 2022). Wasta is defined as “an implicit social contract, typically within a tribal group, which obliges those within the group to provide assistance (favorable treatment) to others within the group.…”

Towards understanding the relationships between economics, tribalism and the use of thewastainformal network in the workplace

“…Informal networks have become an intriguing topic of research in the field of international business activities and human resource management (HRM) alike (Georgiadou and Syed, 2021; Horak, 2022; Horak and Paik, 2022; Horak et al ., 2022; Minbaeva et al ., 2022; Weir and Ali, 2022). The ever-increasing interest in understanding these different informal networks in general and their form in the Middle East and North Africa (MENA) region (wasta) in particular is due to the crucial role that wasta plays in most aspects of managerial and business practices (Abosag and Ghauri, 2022; Afiouni et al ., 2014, 2020; Khakhar and Rammal, 2013; Zhang et al ., 2021).…”