Wasta Effects on Supply Chain Relationships in the Middle East Region

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.

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.