Arabic business relationship characteristics: a social capital perspective

The 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-moone and wasta), their impact on each other and key influencing factors.

A 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.

The findings suggest that wasta, ehsan and et-moone align 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-moone and wasta appear to influence each other, and are affected by other factors such as an individual’s age and position, and the duration of the relationship. Ehsan has a positive influence on the development of et-moone, while the existence of et-moone appears to be necessary for the establishment of wasta-capital. A high level of ehsan might influence the relationship between et-moone and wasta-use and limit the negative usage of wasta.

International managers can improve the level of ehsan in their organizational and business relationships through assigning incentives and playing the role of moral champion to encourage ehsan behavior. Managers aiming to increase et-moone may choose team members with a high level of ehsan, emphasizing the development of personal relationships, and providing opportunities for socialization both inside and outside the workplace. A high level of ehsan and et-moone will assist managers to develop and use wasta.

This 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. Wasta aligns with the structural dimension and ehsan aligns with the cognitive dimension, while et-moone aligns closely with the relational dimension. Second, it suggests and shows how the three relationship characteristics might interact with each other. Ehsan appears to influence et-moone, and also the relationship between et-moone and wasta. Et-moone appears to have a positive influence on wasta use. 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.