Favor reciprocity, innovation and inefficiency: the double-edged sword of business-to-business wasta relations

Omar AlHussainan, Ying Guo*, Hussain Gulzar Rammal, Ryan W. Tang, Ismail Golgeci

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

Purpose: The purpose of this study is to empirically investigate the dark side of business-to-business (B2B) relationships in traditional business practices worldwide that rely on strong networks. Design/methodology/approach: This study applies a questionnaire survey to collect data from buyers in 224 Kuwaiti firms and uses the partial least squares structural equation model for data analysis. Findings: Drawing on the social exchange theory, we test the relationships between B2B wasta, relationship satisfaction, innovation and efficiency. The findings show that despite the belief that wasta brings long-term benefits when applied in B2B relationships, it negatively impacts the firm’s efficiency. Originality/value: This study contributes to the existing literature on B2B relationships by identifying important issues related to the multifaceted nature of B2B wasta relationships. The study confirms the importance of relational and innovation benefits over economic consequences based on elements of social exchange theory, which extends our current understanding of the application of SET in B2B wasta relationships.

Original languageEnglish
Pages (from-to)1203-1214
Number of pages12
JournalJournal of Business and Industrial Marketing
Volume38
Issue number5
DOIs
Publication statusPublished - 21 Mar 2023

Keywords

  • Business-to-business relations
  • Kuwait
  • Social exchange theory
  • Wasta

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