Reward allocation decision making in Arab-Islamic business organizations

Abstract

Purpose The purpose of this paper is to investigate monetary reward allocation decision-making in an Arab-Islamic business environment. Design/methodology/approach In this mixed-method (quantitative/qualitative) study, data were obtained from a sample of 342 practicing managers of different genders and educational levels working in different industries at different organizational levels in Oman. Findings The more individualistic personal orientation, the more likely the decision makers are to allocate the biggest reward to the best performer and to believe that the equity principle is best for distributing rewards. In the context of a society transitioning from collectivistic to individualistic cultural values, the level of education is associated with preference for the equity principle in reward allocations. Research limitations/implications The reported findings advance the theoretical understanding of how an emic perspective can explain reward allocation decision-making in Arab-Islamic environment. Practical implications Practical implications of this study lie in the guidance that global managers can draw regarding which allocation principle to use in which cultural context: the principle of equity – not equality, need or seniority – is embraced by organizations in the Arabian Gulf. Originality/value The study examines reward allocation decision-making behavior in the under-researched context of the Arabian Gulf and adds to the body of knowledge based on data obtained from practicing managers rather than college students.