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1 – 10 of 15Ron Berger, Ram Herstein, Daniel McCarthy and Sheila Puffer
The purpose of this paper is to analyze the role of Wasta, a culturally based system of social networks of exchange among in-group members in the Arab world, as exemplified by…
Abstract
Purpose
The purpose of this paper is to analyze the role of Wasta, a culturally based system of social networks of exchange among in-group members in the Arab world, as exemplified by three groups of Arabs in the Palestinian Authority, and then compares it to Guanxi (China), Sviazi (Russia) and Jaan–Pechaan (India). The use of social networks is a common business model around the world to accomplish business objectives and is especially relied upon in emerging economies where formal institutions are weak. It is important to understand the commonalities and differences in the use of reciprocity in various cultural contexts in order to conduct business effectively. The aim of the paper is to illustrate the structure of Wasta and how it is perceived and constructed among three Arab social groups, and then compare and contrast it with social business models in three other high context cultures.
Design/methodology/approach
Qualitative approach based on interviews to better understand the relationships involved.
Findings
The findings provide the foundation for a number of critical insights for non-Arab managers seeking to do business in the Arab world. For international managers to conduct business successfully, it is essential to understand how Wasta works, and establish relationships with members of influential social networks by building trust over time such that they create Wasta for themselves and indirectly for their firms. Using Wasta in the Arab world, as noted above, is similar to doing business successfully in other emerging economies such as using Sviazi in Russia (McCarthy and Puffer, 2008; Berger et al., 2017), Guanxi in China (Yen et al., 2011) and Jaan–Pechaan in India (Bhattacharjee and Zhang, 2011). The authors feel more confident in stating this view after comparing Wasta with these other three concepts, and noting that all four are built upon the same fundamental constructs.
Research limitations/implications
The authors recognize that the study is limited in terms of the geographical sample since it does not include any non-Palestinians, although the managers the authors sampled came from various regions in the Palestinian authority. Additionally, Palestinian managers are highly educated and mobile, and can be found in many other Arab countries working in managerial positions (Zineldin, 2002), thus potentially broadening the generalizability of the findings. Nonetheless, the samples would be called ones of convenience rather than randomly drawn from the three groups, since the latter would be extremely difficult to execute not only in the Palestinian Authority but in most of the Arab world due to the culturally based reluctance to provide sensitive information to those outside one’s network. Despite the difficulties that might be involved in exploring such culturally sensitive issues as the authors did in this study, the benefits in knowledge gained can be of significant importance to the study of international business in emerging and transition economies.
Originality/value
Little research has focused on the use of Wasta in the Arab world, a gap which this paper addresses. The authors do so by analyzing the views of Wasta held by three important groups – leaders, business people and students. While each type of reciprocity has its own unique characteristics, the authors focus on three interrelated constructs that have been found to underlie the use of reciprocity in various cultures. In the Arab world, these are Hamola, which incorporates reciprocity; Somah, that incorporates trust; and Mojamala, which incorporates empathy through social business networks.
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Ron Berger, Netanel Drori, Matti Rachamim and Ilan Alon
This paper aims to generalize emic studies of culture and thus provide indigenous view nuanced particularly for emerging markets.
Abstract
Purpose
This paper aims to generalize emic studies of culture and thus provide indigenous view nuanced particularly for emerging markets.
Design/methodology/approach
The authors review four local business frameworks and deconstruct each into three different constructs. The authors systematically evaluate culture specific studies, particularities of jaan pehchaan (India), guanxi (China), sviazi (Russia) and wasta (Arab countries).
Findings
Building on social networking theory, the authors synthesize an emic model for four types of large emerging markets cultures – China, Russia, India and Arab countries – and divide them according to their affective, conative and cognitive elements.
Practical implications
By knowing the impact of the constructs and how to leverage it, managers can successfully penetrate and manage these complex markets.
Originality/value
Current models of culture, such as the ones proposed by Hofstede and GLOBE, are etic in their orientation, attempting to find variations in common dimensions across different cultures. Emic approaches to studying culture are more bottom-up and are idiosyncratic to the culture.
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Sven Horak, Daniel J. McCarthy and Sheila M. Puffer
Informal networking is generally regarded as an important activity that is available to every manager, which usually results in positive outcomes. However, differences in…
Abstract
Informal networking is generally regarded as an important activity that is available to every manager, which usually results in positive outcomes. However, differences in networking behavior have been less frequently discussed and compared in a global context. We argue that different ideals of informal networking can result in situations where international managers can hardly foresee the potential consequences of their networking behavior, especially when local ideals of networking are not taken into account. Differences in networking behavior caused by differences in underlying values, norms, and ideals can lead to ethical dilemmas. At this junction, we point out the integral role favors and favor exchange play in global networking and suggest a competency framework that is helpful for international managers to navigate informal networking abroad and identify potential ethical dilemmas before they take effect.
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Ron Berger, Bradley R. Barnes and Avi Silbiger
Managers of multinational enterprises (MNEs) from developed economies are often cautious to understand the cultural environment where they do business. This is predominantly true…
Abstract
Purpose
Managers of multinational enterprises (MNEs) from developed economies are often cautious to understand the cultural environment where they do business. This is predominantly true in developing economies, and even more so in certain Arab countries where MNEs have limited knowledge and experience. The purpose of this study is to report on the development of a research instrument that is applicable to Arab business culture, following the 2011 Arab Spring. The investigation draws on data from three different groups of people, i.e. leaders (business professors and leading politicians), business people and postgraduate business students, all of Palestinian nationality. The article examines the Arabic culturally based business structure called Wasta, a system that relies on social networks and the reciprocal exchange of favors. A research instrument is developed to measure three dimensions of Wasta across these three different groups of people and examines their influence on relationship satisfaction and organizational performance. The findings reveal that the groups are affected differently by these dimensions and see different utility in Wasta. Such insights may be useful for MNE practitioners when entering Arab countries, when seeking to employ younger Arabs and when partnering with Arab businesses or dealing with government officials.
Design/methodology/approach
Research paper
Findings
This study has focused on the impact of Wasta on relationship satisfaction and on relationship performance for three different groups of individuals: business people, students and leaders. It was hypothesized that higher levels of each component of Wasta would contribute positively to relationship satisfaction, and that the latter would in turn lead to higher relationship performance. Findings generally supported these hypotheses with some variations among groups. Furthermore, it was predicted that the model would be relevant to all three groups, but would be structured differently reflecting their different views of business. The findings of this study help answer our research question about the socio-economic, cultural and political factors that influence the business process involving Arab and non-Arab business managers.
Originality/value
Original paper
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Attempts to discover an internal logic in the high‐speed eventstaking place in the former Soviet Union. In addressing the problems ofthe country′s disintegration, examines the…
Abstract
Attempts to discover an internal logic in the high‐speed events taking place in the former Soviet Union. In addressing the problems of the country′s disintegration, examines the issue in its socioeconomic, political and territorial‐administrative aspects. Analyses, for this purpose, the nature of Soviet society prior to Gorbachev′s reforms, its present transitional stage and its probable direction in the near future.
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Günter K. Stahl, Christof Miska, Sheila M. Puffer and Daniel J. McCarthy
Highly publicized scandals and increased stakeholder activism for sustainable development have resulted in calls for more responsible global leadership. At the same time, emerging…
Abstract
Highly publicized scandals and increased stakeholder activism for sustainable development have resulted in calls for more responsible global leadership. At the same time, emerging economies characterized by weak institutions, political instability, and a shaky rule of law have gained in importance for global business. Under the lens of responsible global leadership, we highlight the challenges that global leaders face in addressing the needs of diverse, cross-boundary stakeholders, with a particular focus on Western multinational enterprises (MNEs) doing business in emerging markets. We identify three prototypical approaches that MNEs and their leaders take in responding to calls for responsible global leadership, focusing on the tensions and possible trade-offs between globally integrated and locally adapted approaches. We discuss the implications in view of managerial decision making and behavior and offer recommendations for how organizations may promote responsible global leadership.
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Ron Berger, Bradley R. Barnes, Liane W.Y. Lee and Matti Rachamim
The study aims to test a measurement scale to examine social business networks (Wasta) surrounding Arab Christians and Arab Muslims.
Abstract
Purpose
The study aims to test a measurement scale to examine social business networks (Wasta) surrounding Arab Christians and Arab Muslims.
Design/methodology/approach
A 31-item scale was used to capture Wasta, consisting of the following: Mojamala (emotional), Hamola (conative) and Somah (cognitive) tri-components. A total of 149 Christian Arab and 304 Muslim Arab respondents were sampled and multi-group structural equation modeling was used to confirm the concept and test several hypotheses.
Findings
The findings from the study reveal that in order for success to occur within the Arab context, a sequential process of first developing Mojamala is necessary, before Hamola can prevail. Christian Arabs are motivated to integrate with society and form relationships via generalized trust. Muslim Arabs meanwhile tend to retain their distinct culture, using social networks to forge particularized trust. Shariah principles may also play a significant role in explaining why satisfaction was not found to be a necessary condition for Arab Muslims in driving relationship performance.
Research limitations/implications
The study suggests that the 370 million Arab population may not be totally cohesive and should be refrained from being grouped together. In-group identification is a major contributor in explaining why business models are different between Arab Muslims and Arab Christians. The findings further support that Muslim Arab business models are based on tribalism or sheikocracy, whilst Christian Arab business models are based on legalistic frameworks and integration.
Practical implications
The study supports prior research associated with Muslim Arab business models based on tribalism or sheikocracy (Ali, 1995). The findings suggest that Arab Muslim business models focus on particularized trust as opposed to generalized trust that is common in Arab Christian business models and in most western countries. The study demonstrates that Mojamala (the emotional construct), Hamola (empathy) and Somah (particularized trust) are useful constructs for building Wasta and they serve a core element for Arab Muslim business models. Mojamala and Somah both directly affect satisfaction. Somah and satisfaction have a direct influence on performance.
Originality/value
The findings provide evidence to support institutional theory. Also from a stakeholder theory perspective, viewing companies, not only through an economic lens, but also building social institutions, can lead to a better understanding of business models drawing on diverse cultures and faiths. The study may therefore serve as a useful reference for academics and practitioners as they grapple to enhance satisfaction and leverage performance advantages within this context.
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Daniel J. McCarthy, Sheila M. Puffer and Snejina Michailova
The purpose of this article is to analyze the initial public offerings (IPOs) of Russian companies in the context of the country's investment attractiveness and the readiness of…
Abstract
Purpose
The purpose of this article is to analyze the initial public offerings (IPOs) of Russian companies in the context of the country's investment attractiveness and the readiness of its companies to list on stock exchanges, domestically and/or internationally. The analysis takes a balanced approach. It recognizes the positive aspects from the development of Russia's stock markets and the launched and planned IPOs of Russian companies, but underscores reasons for caution in assessing this developing situation, emphasizing the need to maintain a critical perspective. The article is intended to help determine, in the sphere of IPOs at least, whether Russia is currently, or is on the road to becoming, as solid as a BRIC.
Design/methodology/approach
Drawing upon publicly available material from English‐ and Russian‐language sources, the authors discuss the development of the two Russian stock exchanges and analyze the progress that Russian companies have made in successfully completing IPOs on Russian and foreign stock exchanges. The paper also analyzes the barriers faced by Russian companies in launching IPOs and/or attracting investment, including global factors, country‐level conditions, and individual firm characteristics.
Findings
The results of the analysis indicate that the Russian stock exchanges have developed reasonably well over the two decades since perestroika. Correspondingly, a substantial number of Russian companies have mounted successful IPOs not only on the Russian stock exchanges but also on international exchanges, particularly the London Stock Exchange. Yet the number of successful IPOs relative to the number of planned IPOs has been much smaller than the global average. The latter finding is attributed to Russia's particular investment problems, which extend beyond global economic forces, specifically the country‐level and firm‐specific factors, both of which heighten the risk for investors.
Originality/value
The authors' review of the literature has uncovered no journal articles covering the circumstances surrounding the IPOs of Russian firms. Additionally, the available sources seldom provide a balanced view, much less a critical view of the IPO landscape in the context of Russia's overall circumstances, particularly risk. Thus, this article, with its critical but balanced perspective, allows for a relatively objective analysis for theorists as well as investors as they approach the topic of Russian company IPOs, domestically or internationally.
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Sheila M. Puffer, Daniel J McCarthy and Alfred M Jaeger
The purpose of this paper is to present a comparative analysis of institutions and institutional voids in Russia, Brazil, and Poland over the decades of the 1980s through to 2015…
Abstract
Purpose
The purpose of this paper is to present a comparative analysis of institutions and institutional voids in Russia, Brazil, and Poland over the decades of the 1980s through to 2015. The paper asserts that Russia and Brazil could learn much from Poland regarding formal institution building and formal institutional voids that cause problems like corruption and limit economic growth.
Design/methodology/approach
A comparative case study approach is utilized to assess the relative success of the three emerging market countries in transitioning to a market economy, viewed through the lens of institutional theory.
Findings
Poland’s experience in building successful formal institutions and mitigating major institutional voids can be instructive for Russia and Brazil which have shown far less success, and correspondingly less sustained economic growth.
Research limitations/implications
This paper demonstrates the value of applying institutional theory to analyze the progress of emerging economies in transitioning to a market economy.
Practical implications
This country comparison can prove valuable to other emerging economies seeking a successful transition to a market economy.
Social implications
Since institutions are the fabric of any society, the emphasis on institutions in this paper can have positive implications for society in emerging markets.
Originality/value
This paper is an original comparison of two BRIC countries with a smaller emerging economy, utilizing institutional theory. Factors contributing to Poland’s success are compared to Russia and Brazil to assess how those countries might be positively informed by Poland’s experience in building and strengthening sustainable formal institutions as well as avoiding institutional voids and their associated problems.
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Information and special library work is at present a profession that is in the process of formation and struggling for recognition, and entry into it is entirely uncontrolled…
Abstract
Information and special library work is at present a profession that is in the process of formation and struggling for recognition, and entry into it is entirely uncontrolled. People with the most varied backgrounds and levels of education find themselves made responsible for setting up or running library and information services, without any previous knowledge of the work. Often they are in remote places and without any contact with more experienced colleagues who could give them advice, and their only means of getting the knowledge necessary for the efficient carrying out of their duties is from reading. But, owing to the unsettled state of the profession, the literature is voluminous and scattered, and much of it is of a low standard, or occupied with pure theorizing or polemics. Moreover, the literature that the novice is most likely to see, namely the articles on documentation which are occasionally printed in technical journals, is not always the most helpful for a person who has no background of experience against which he can evaluate it. In these circumstances the new entrant needs a guide to the literature if he is not to be discouraged or adopt practices and systems which are not really suitable to his circumstances. It is to meet this need that this annual review of the literature, now in its sixth year, has been written. It attempts to select those books and papers which are most likely to be of direct help in running a small information department or library, eschewing all pure theorizing and polemics, and only including literature on large libraries where it is felt that it contains ideas capable of application in smaller organizations. To these are added a selection of the most important works of reference, including some that the information officer may wish to know about and consult in other libraries, even though his own library does not possess them. The list is not restricted to work published in 1957, but is intended to be representative of items received in British libraries during the period under review. Owing to restrictions in space, the selection has to be rigorous, and is inevitably, to a certain extent, a personal one. No two people would probably agree on all the omissions, but it is hoped that all the items included will be of positive value to the type of reader for whom the review is intended.