Arabic business relationship characteristics: a social capital perspective

Abstract

PurposeThe purpose of this study is to understand the development of social capital in an Arab business environment, and provide an in-depth description of the nature and role of three key Arabic business relationship characteristics (ehsan,et-mooneandwasta), their impact on each other and key influencing factors.Design/methodology/approachA qualitative research design was used, in which face-to-face semi-structured interviews were conducted with innovation teams (22 team members) at six industrial small and medium-sized enterprises in Saudi Arabia. The interviews were recorded and transcribed, then analyzed (thematic coding) through NVivo.FindingsThe findings suggest thatwasta,ehsanandet-moonealign closely with the three social capital dimensions (structural, cognitive and relational); thus, developing these three relationship characteristics most likely results in developing social capital. The findings also expand the description of the three business relationship characteristics. Moreover,ehsan,et-mooneandwastaappear to influence each other, and are affected by other factors such as an individual’s age and position, and the duration of the relationship.Ehsanhas a positive influence on the development ofet-moone, while the existence ofet-mooneappears to be necessary for the establishment ofwasta-capital. A high level ofehsanmight influence the relationship betweenet-mooneandwasta-use and limit the negative usage ofwasta.Practical implicationsInternational managers can improve the level ofehsanin their organizational and business relationships through assigning incentives and playing the role of moral champion to encourageehsanbehavior. Managers aiming to increaseet-moonemay choose team members with a high level ofehsan, emphasizing the development of personal relationships, and providing opportunities for socialization both inside and outside the workplace. A high level ofehsanandet-moonewill assist managers to develop and usewasta.Originality/valueThis study makes a threefold contribution to the literature. First, it provides an expanded description of the three Arabic business relationship characteristics and how they align closely with the dimensions of social capital.Wastaaligns with the structural dimension andehsanaligns with the cognitive dimension, whileet-moonealigns closely with the relational dimension. Second, it suggests and shows how the three relationship characteristics might interact with each other.Ehsanappears to influenceet-moone, and also the relationship betweenet-mooneandwasta.Et-mooneappears to have a positive influence onwastause. Third, the findings also indicate that there might be other factors (e.g. age and position) that influence the interactions between the three business relationship characteristics.