How Wasta Causes Corruption in the Private Sector in the Middle East and North Africa - An Empirical Examination

The goal of this empirical analysis is to use the Social Identity and Hedonism theories to illustrate why many people in the Middle East and North Africa exploit Wasta excessively. Empirically, the author examines the association between corruption and the use of Wasta __an interpersonal social network relation ingrained in family, clan, lineage, and extended relationships __in the Middle East and North Africa. Employing the Structural Equation Modelling approach, the research author examines the study hypotheses by compiling primarily collected datasets (855 respondents) from both male (600 respondents) and female respondents (255 respondents) who are employees in the private sector in the Middle East and North Africa through a Google Survey Link. This study's results indicate that Wasta (i.e., Hamola, Mojamala, and Somah) positively and significantly relates to corruption. The study conclusions also claim that Somah (β (unstandardized coefficient) = .227, p-value = .002) and Hamola (β (unstandardized coefficient) = .420, p-value = .0001) are the most considerable and significant Wasta factors that cause corruption in the Middle East and North Africa. Besides, the study outcomes empirically validate all Wasta dimensions (i.e., Hamola, Mojamala, Somah) and assist researchers in employing the Wasta's conceptual framework and linking the Wasta phenomenon with corruption empirically in other nations (Appendix 1). By understanding the Wasta concept, global investors are more likely to be qualified to manage, succeed, and thrive in the Arab world and North Africa and keep their homeland decrees and corporate ethics. Also, international corporations running a business in the Arab world and North Africa benefit from having an objective acquaintance with Wasta, for it pushes them to be mindful of the overlooked arrow of Wasta practised in business, inspires them to come up with proactive actions, and lowers the probability of bribes. Furthermore, understanding the Wasta phenomenon will encourage international companies to design and develop training agendas that equip transnational assignees with the importance of beliefs, values, and norms in the host country. And how the nationwide culture can influence trade enterprises in the Arab world and North Africa concerning hiring, promoting, developing, bidding, etc.