Arab networking and relationship marketing: is there a need for both?

Abstract

Purpose This study aims to examine the Arab practice of wasta (personal networks) and its potential interface with relationship marketing to enable firms to optimize their recruitment and retention of customers in societies where personal ties drive business relationships. It explores whether relationship marketing influences customer retention when a personal contact leaves. Design/methodology/approach Empirical data were gathered from 305 customers introduced to Egyptian small and medium-sized enterprises via wasta. Multiple-item scales were adopted, drawn from previous empirical studies. Quantitative analysis was used, including confirmatory factor analysis. Structural equation modeling was used to test the hypothesized relationships posited. Findings Wasta plays a significant role in attracting customers, nurturing early relationships and enhancing relationship quality, but does not influence the retention of customers. Practicing relationship marketing post wasta can enhance customer loyalty, even if the business was developed through the wasta contact who left to join a rival firm. Research limitations/implications Potential limitations arise from cultural differences in other Middle Eastern countries. Future studies could also validate the results in different sectors/industries and explore managers and employees’ perspectives. Practical implications Several recommendations emerge for managerial practitioners, including the use of wasta to attract business, but more significantly, the need for the effective use of relationship marketing to retain business. The study suggests that if relationship marketing is practiced well, customers are likely to remain loyal to the firm, even if the business was developed through a personal wasta relationship with an employee who subsequently moved to a competitor firm. Originality/value This study is the first to develop a unified model connecting the Eastern notion of wasta (personal ties) with relationship marketing. The study enhances the knowledge of wasta and relationship marketing. It is among the first to suggest that should employees with personal connections to customers leave to join a competing firm, there is still a strong likelihood that if relationship marketing is effectively practiced, then customers will remain loyal to the firm (rather than to the former employee).

Environmental Transformational Leadership and Green Innovation in the Hotel Industry: Two Moderated Mediation Analyses

“…These numbers are lower than the recommended threshold of 5.0, which shows that there is no multicollinearity in the structural inner model. Chin [ 56 ] suggested a minimum R2 value of 0.10 for adequate GoF. As shown in Table 4 , the R 2 values for the OCBE (R 2 = 0.510) and GI (R 2 = 0.366) are adequate.…”

“…Otherwise, prevention-focused employees always pursue maintenance and safety, sticking to their obligations and following “ought to do” responsibilities to secure stability. They believe “avoidance” is a suitable strategic approach [ 55 , 56 , 57 ]. Regulatory focus theory hypothesizes that promotion focus is associated with innovative performance.…”

A Rejoinder to: ‘Questioning the Appropriateness of Examining Guanxi in a Wasta Environment: Why Context Should Be Front and Center in Informal Network Research – A Commentary on “De-Linking from Western Epistemologies: Using Guanxi-Type Relationships to Attract and Retain Hotel Guests in the Middle East”’

“…While our own detailed knowledge of wasta is evidenced in prior work by some of the same authors (e.g. Shaalan, Tourky, Barnes, Jayawardhena, & Elshaer, 2021), the term is culturally inappropriate in some of the 17 countries studied on this occasion (i.e., Iran and Turkey) and excludes other networks such as Et-Moone (Abosag & Lee, 2013) and ma'arifa (Yahiaoui & Zoubir, 2006). Indeed, Abosag and Naudé's (2014) study, cited by the authors to back their criticism that we had not focused on wasta , is itself about Et-Moone rather than wasta , and compares Et-Moone to guanxi .…”

“…While our own detailed knowledge of wasta is evidenced in prior work by some of the same authors (e.g. Shaalan et al, 2021), the term is culturally inappropriate in some of the 17 countries studied on this occasion (i.e. Iran and Turkey) and excludes other networks such as Et-Moone (Abosag and Lee, 2013) and ma'arifa (Yahiaoui and Zoubir, 2006).…”

“…Where only one network exists, of course this is an appropriate research focus (e.g. Shaalan et al, 2021); complex cross-cultural research may require a different approach.…”