Perceived managerial and leadership effectiveness within multinational corporations in Saudi Arabia: The role of Islamic and Wasta values

Abstract

The Kingdom of Saudi Arabia (KSA) presents a promising yet volatile environment for international business. US‐centric models dominate management/leadership studies in the Arab Gulf Region, while emic, indigenous, and context‐specific studies remain scarce. To rectify this epistemic injustice, we have conducted a qualitative Type 3 (emic‐as‐emic) indigenous ‘critical incident' study of managerial behavior exhibited by expat and local managers within MNCs operating in Saudi Arabia. This has led to an emergent KSA‐related two‐factor taxonomy comprised of 15 behavioral dimensions (BDs) that differentiate effective managers from ineffective managers, as perceived by their Saudi colleague managers and staff. The positive (effective), and most of the negative (ineffective) BDs are endorsed by Islamic and tribal Wasta values, thus lending support to literature on culturally endorsed implicit leadership theories, while simultaneously calling for increased attention toward proximal cultural factors rather than distal national cultural dimensions. Comparing our findings against those of an equivalent study in the United Arab Emirates reveals significant similarities and interesting differences, thus challenging the notion of a homogenous ‘Arab culture'. The derived taxonomy offers an insightful, contextually relevant, and richly described understanding of specific types of managerial behavior that managers within MNCs in Saudi Arabia, and perhaps in other Arab Gulf desert countries, should strive to emulate or conversely avoid if they are to be perceived effective by their respective superiors, peers, and subordinates. After discussing the theoretical and practical implications of our findings, we outline the limitations of the study and suggest several directions for future research.