Abstract
Internationalisation has greatly altered the international economic positioning of many developing nations in heralding challenges for cross-cultural management in subsidiary operations. One region that presents challenges to international businesses is the Arab World; yet along with this, opportunities have been presented to increase understanding of its cultures and business practices. We highlight how wasta works in practice, converge and diverge, and how it has been affected by modernisation. We suggest that international managers need to understand this aspect of Arab social networking to facilitate the effectiveness of their subsidiary operations in the Arab World and to recognise why these practices continue. In this chapter, the Arab World is defined as the countries of North Africa, Sudan, Jordan, Palestine, Syria, Lebanon, Iraq and Yemen and the countries of the Gulf Cooperation Council such as Bahrain, Kuwait, Oman, Qatar, United Arab Emirates and Oman.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Al Meles, M. (2007) “Understanding people’s attitude towards the use and impact of ‘Wasta’[Nepotism] in Kuwait. Suggesting practical ways of overcoming negative attitudes and demotivation in people through organisational behavioural change in key areas [recruitment and selection]”, Cranfield School of Management, Working Paper.
Aljbour, R.H. (2011) “Wasta and Non-Arab training, characteristics, task, and culture in Arab markets”, Ph D Dissertation of Lynn University ISBN 9781124568928.
Alsane, N. (1994) “Developing management in the countries of the Gulf Co-operative Council”, Paper presented to the Arab Management Conference 1994, Bradford: University of Bradford Management Centre.
Ayubi, N. (1986) “Bureaucratization as development: administrative development and development administration in the Arab World”, International Review of Administrative Science. Vol. 52, pp. 201-222.
Bailey, D. C. (2012) “Women and Wasta: The use of focus groups for understanding social capital and Middle Eastern women”, The Qualitative Report. 17. pp. 1-18.
Barnett, A., Yandle, B., and Naufal, G. (2013) “Regulation, trust, and cronyism in Middle Eastern societies: The simple economics of ‘wasta’”, The Journal of Socio-Economics. Vol. 44. pp. 41-46.
Boissevain, J. (1974) “Friends of friends: networks, manipulators and coalitions”, Oxford: Basil Blackwell.
Brouthers, K.D. (2002) “Institutional, cultural and transaction cost influences on entry mode choice and performance”, Journal of International Business Studies. 33(2). pp. 203-221.
Buckley, P.J., and Casson, M.C. A (1988) “Theory of co-operation in international business”, in: F.J. Contractor and P. Lorange (eds.), “Co-operative Strategies in International Business”, Lexington, MA: Lexington Books. pp. 31-54.
Chennoufi, B., and Weir, D. (2000) “Management in Algeria”, in: M. Warner (ed.), “Management in Emerging Countries: Regional Encyclopaedia of Business and Management”, London: Business Press/Thomson Learning, pp. 176-181.
Coase, Ronald. (1983) “The Nature of the firm”, Economica. Vol. 4. pp. 386–405.
Dadfar, H. (1993) “In search of Arab management, direction and identity”, Paper presented to the Arab Management Conference 1993, Bradford, University of Bradford Management Centre.
Dwyer, F.R., Schurr, P.H. and Oh, S. (1987) “Developing buyer-seller relationships”, Journal of Marketing. 3(2). pp. 7-23.
El-Tayeb, H. (1986) “Administrative reform in the Arab countries: between the original and contemporary”, in: Al-Saign, N. (ed.), “Administrative Reform in the Arab Countries: Readings”. Amman: Arab Organization of Administrative Sciences, pp. 116-165.
Erkal, N., and Kali, R. (2011) “Political connections, entrepreneurship, and social network investment”, University of Melbourne, Working Paper accessed a thttp://extranet.isnie.org/uploads/isnie2012/kali_erkal.pdf on 24 May 2011.
Etzioni, A. (1988) “The Moral dimension: towards a new economics”, New York, The Free Press.
Fuller, G.E., and Lesser, I.O. (1996) “A sense of siege: The geopolitics of Islam and the West”, Arab Studies Quarterly. 18 (3). pp. 87-91.
Garbett, K. (1970) “The analysis of social situations”, Man. N.S. 5(2). pp. 214-27.
Gold G.D, and Naufal, G.S. (2012) “Wasta: the other invisible hand: a case study of university students in the Gulf”, Journal of Arabian Studies: Arabia, the Gulf, and the Red Sea. 2(1).
Granovetter, M. (1985) “Economic action and social structure: the problem of embeddedness”, American Journal of Sociology. Vol. 91, pp. 481-510.
Hamdy, A. (2008) “The stigma of wasta, the effect of wasta on perceived competence and morality”, Faculty of Management Technology, January, German University of Cairo.
Hennart, J.F. and Larimo, J. (1998) “The impact of culture on the strategy of multinational enterprises: Does national origin affect ownership decisions”, Journal of International Business Studies. 29(3). pp. 515-538.
Hickson, D. and Pugh, D. (1995) “The Arabs of the Middle East”, in: Hickson, D., and Pugh, D. (eds.), “Management Worldwide”, Harmondsworth, Penguin.
Hofstede, G. (1980) “Culture’s consequences: comparing values, behaviors, institutions, and organisations across nations”, Thousand Oaks, Sage.
Hooker, J. (2008) “Corruption from a cross-cultural perspective”, Carnegie-Mellon University, 2008. Working paper accessed at http://web.tepper.cmu.edu/jnh/corruption08s.pdf on May 24 2012.
Hutchings, K. (2003) “Cross-Cultural Preparation of Australian Expatriates in Organisations in China: The Need for Greater Attention to Training”, Asia Pacific Journal of Management. 20(3). pp. 375-396.
Hutchings, K. and Murray, G. (2002) “Australian expatriates’ experiences in working behind the bamboo curtain: an examination of Guanxi in post-Communist China”, Asian Business Management. Vol. 1. pp. 1-21.
Hyndman-Rizk, N. (2014) “Migration, Wasta and big business success: the paradox of capital accumulation in Sydney’s Hadchiti Lebanese community”, Labour and Management in Development Journal. Vol. 15. p. 5.
Lin, N. and Duman, M. (1986) “Access to occupations through social ties”, Social Networks. 8(4). pp. 365-385, December 1986.
Lowe, S. (1998) “Culture and network institutions in Hong Kong: a hierarchy of perspectives. A response to Wilkinson: culture, institutions and business in East Asia”, Organization Studies. 19(2). pp. 321-343.
Mathew, V., and Kavitha, M. (2010) “Women entrepreneurs practicing business in Middle East: case study of socio-cultural environmental barriers”, International Journal of Arab Culture, Management and Sustainable Development. 1(3). pp. 239 – 253.
Mitchell, C. (1969) “Introduction”, in: C. Mitchell (ed.), “Social networks in urban situations: Analyses of personal relationships in central African towns”, Manchester: Manchester University Press. pp. 1-9.
Mitchell, C. (1976) “The concept and use of social networks”, in: Evans, W.M. (ed.), Interorganizational Readings. New York, Penguin. pp. 293-306.
Ouchi, W. (1980 “Markets, bureaucracies and clans”, Administrative Science Quarterly. Vol. 25. pp. 129-62.
Park, S., and Ungson, G. (1997) “The effect of national culture”, organizational complementarity, and economic motivation on joint venture dissolution”, Academy of Management Journal. 40(2). pp. 279-307.
Redding, S.G. (2002) “The capitalist business system of China and its rational”, Asia Pacific Journal of Management. 19(2/3). pp. 221-241.
Rice, G. (2004) “Doing Business in Saudi Arabia”, Thunderbird International Business Review. 46(1). pp. 59-84.
Sawalha, F. (2002) “Study says ‘wasta’ difficult to stamp out when advocates remain in power”, Jordan Times. April 1, 2002.
Scott, J. (1991a).“Networks of Corporate Power: A Comparative Assessment”, Annual Review of Sociology. Vol. 17. pp. 181-203.
Scott, J. (1991b). “Social Network Analysis: A Handbook”, London, Sage.
Smith Peter, Torres Claudio, Leong Chan-Hoong, Budhwar Poawan, Achoui Mustafa and Lebedeva Nadzhda. (2012) “Are indigenous approaches to achieving influence in business organizations distinctive? A comparative Study of guanxi, wasta, heitinho, svyazi and pulling strings”, The international Journal of Human Resource Management. 23. pp. 333-348.
Smith, P. B, Huang, H. J, Harb, C. and Torres, D. (2012) “How distinctive are indigenous ways of achieving influence? A comparative study of Guanxi, Wasta, Jeitinho, and Pulling Strings ”, Journal of Cross-Cultural Psychology. 43(1). pp. 135-150.
Stanton, M. (1999) “An appreciative inquiry into the role of Islamic values in organisational decision making and practices”, Unpublished Masters of Organizational Science Thesis, Malibu, California, Graziadio School of Business, Pepperdine University.
Sultan, N, Metcalfe. B. and Weir, D. (2011) “Building the foundation for a post-oil era: the case of the GCC countries”, in Sultan, N., Weir, D., and Karake, Z. (eds.), “The New Post-Oil Arab Gulf: Managing People and Wealth”, London, Al-Saqi. pp. 15-44.
Trompenaars, F., and Coebergh, P.H. (2014) “100+ Management Models”, Oxford, Infinite Ideas Limited.
Trompenaars, F., and Hampden-Turner, C. (1997) “Riding the Waves of Culture”, London, Nicholas Brealey Publishing.
Velez-Calle, A., Cristina Robledo-Ardila, C. and Rodriguez-Rios, J. D. (2015) “On the Influence of Interpersonal Relations on Business Practices in Latin America: A Comparison with the Chinese Guanxi and the Arab Wasta”, Thunderbird International Business Review. 9 February 2015,
Weir, D., Sultan, N., and Metcalfe, B. (2011) “The Arabian Gulf as Knowledge-based Economies: The Challenge”, in: Sultan, N., Weir, D., and Karake, Z. (eds.), “The New Post-Oil Arab Gulf: Managing People and Wealth”, London, Al-Saqi. pp. 73-96.
Weir, D. (1998) “The fourth paradigm”, in Al-Shamali, A., and Denton, J. (eds.), “Management in the Middle East”, Kuwait, Gulf Management Centre. pp. 60-76.
Weir, D. (2003a) “Human Resource Development in the Middle East: A Fourth Paradigm”. in: Lee, M. (ed.), “HRD in a Complex World”. London, Routledge. pp. 69-82.
Weir, D.T.H. (2003b) “Management Development and Leadership in the Middle East: An Alternative Paradigm”, Paper presented to the Leadership in the Management Theory at Work Series Conference, June 2003, Lancaster: Lancaster University.
Werbner, P. (1990) “The Migration Process: capital, gifts and offerings among British Pakistanis”, New York, Berg.
Werbner, P. (1999) “Global pathways. Working class cosmopolitans and the creation of transnational ethnic worlds”, Social Antropology. 7(1). February. pp. 17-35.
Whitley, R. (1999) “Competing logics and the units of analysis in the comparative study of economic organization”, International Studies of Management and Organization. 29(2). pp. 113-126.
Whitten, N, and Wolfe, A.W. (1973) “Network analysis”, in: Honigmann, I. (ed.), “Handbook of Social and Cultural Anthropology”, Chicago, Rand-McNally. pp. 717-746.
Williamson, O.E. (1975) “Markets and Hierarchies: Analysis and Antitrust Implications”, New York, Free Press.
Williamson, O. (1979) “Transaction-cost economics: the governance of contractual relations”, Journal of Law and Economics. Vol. 22, pp. 3-61.
Younis, T. (1993) “An overview of contemporary administrative problems and practices in the Arab world”, Paper presented to the Arab Management Conference 1993, Bradford, University of Bradford Management Centre.
Zhou, M. (2004) “Revisiting Ethnic Entrepreneurship: Convergences, Controversies, and Conceptual Advancements”, International Migration Review. Fall. 38(3). pp. 1040-1074.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Weir, D., Sultan, N., Van De Bunt, S. (2016). Wasta: A Scourge or a Useful Management and Business Practice?. In: Ramady, M. (eds) The Political Economy of Wasta: Use and Abuse of Social Capital Networking. Springer, Cham. https://doi.org/10.1007/978-3-319-22201-1_2
Download citation
DOI: https://doi.org/10.1007/978-3-319-22201-1_2
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-22200-4
Online ISBN: 978-3-319-22201-1
eBook Packages: Economics and FinanceEconomics and Finance (R0)