Wasta Effects on Supply Chain Relationships in the Middle East Region

Wasta Effects on Supply Chain Relationships in the Middle East Region

Noor Al-Ma'aitah (Mutah University, Jordan), Ebrahim Soltani (Hamdan Bin Mohammed Smart University, UAE) and Ying-Ying Liao (Hamdan Bin Mohammed Smart University, UAE)
DOI: 10.4018/978-1-7998-3473-1.ch174
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Abstract

This chapter's aim is two-fold: to examine the impact of Wasta on long-term supply chain relationship and uncover the ways trust functions the complex interplay between culture (Wasta) and long-term supply chain relationship. Data from 350 buyers and 302 suppliers in the Jordanian manufacturing sector show that there is a general consensus on the idea that long-term buyer-supplier relationship is significantly affected by Wasta and that theqa (i.e. trust) moderates the relationship between Wasta and long-term relationship. The findings contribute to the increasing shift of focus towards contextualizing organisational research beyond Hofstede's cross-cultural paradigm to encompass context-specific religious-cultural values of the Middle East region.
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Conceptual Framework And Hypotheses Development

As Figure 1 shows, the proposed research framework suggests that national cultural norms (i.e. wasta) have effects on the long-term supply chain relationships and that trust moderates the effects of national culture on supply chain relationships. In addition, trust could also have a direct effect on long-term supply chain relationships.

Figure 1.

Conceptual framework

978-1-7998-3473-1.ch174.f01

Key Terms in this Chapter

Guanxi: Is personal connection in Chinese culture.

Theqa: Is equivalent to “trust” in the Western context.

National Culture: A set of norms, values, attitudes, and behaviors.

Supply Chain Relationships: On-going relationships between two firms with, at a minimum, a commitment from each party to engage in long-term business projects.

Wasta: Is a social behavior based on whom one knows or networks.

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