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Nepotism in the Arab World: An Institutional Theory Perspective

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  • Sidani, Yusuf M.
  • Thornberry, Jon

Abstract

We examine the practice of nepotism in the Arab World and analyze how a rational-legal model of bureaucracy was never able to take hold. We draw upon ideas from institutional theory and related notions of legitimacy to provide an explanation of nepotism’s extraordinary persistence. Then we use arguments to speculate how the appearance of institutional entrepreneurs who are advocates for a new hybrid form of nepotism might begin to colonize a social space created by larger political and economic changes that are sweeping the Arab World. Those entrepreneurs must persuade other members of an extended family that the current practice of nepotism is typically destructive of a firm’s competitive performance. In addition, they will argue that nepotism as currently practiced violates teachings of Islam. This second argument is likely to be particularly effective with an audience that sees Islam as a source of universal notions of justice and fairness.

Suggested Citation

  • Sidani, Yusuf M. & Thornberry, Jon, 2013. "Nepotism in the Arab World: An Institutional Theory Perspective," Business Ethics Quarterly, Cambridge University Press, vol. 23(1), pages 69-96, January.
    • Handle: RePEc:cup:buetqu:v:23:y:2013:i:01:p:69-96_00
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    Cited by:

    1. Dowling, Michael & Vanwalleghem, Dieter, 2018. "Gulf Cooperation Council cross-border M&A: Institutional determinants of target nation selection," Research in International Business and Finance, Elsevier, vol. 46(C), pages 471-489.
    2. Elbanna, Said & Abdelzaher, Dina M. & Ramadan, Nora, 2020. "Management research in the Arab World: What is now and what is next?," Journal of International Management, Elsevier, vol. 26(2).
    3. Sidani, Yusuf & Al Ariss, Akram, 2014. "Institutional and corporate drivers of global talent management: Evidence from the Arab Gulf region," Journal of World Business, Elsevier, vol. 49(2), pages 215-224.
    4. Sarah Hudson & Helena V González-Gómez & Cyrlene Claasen, 2019. "Legitimacy, Particularism and Employee Commitment and Justice," Journal of Business Ethics, Springer, vol. 157(3), pages 589-603, July.
    5. Dina M. Abdelzaher & Amir Abdelzaher, 2017. "Beyond Environmental Regulations: Exploring the Potential of “Eco-Islam” in Boosting Environmental Ethics Within SMEs in Arab Markets," Journal of Business Ethics, Springer, vol. 145(2), pages 357-371, October.
    6. Hearn, Bruce & Strange, Roger & Piesse, Jenifer, 2017. "Social elites on the board and executive pay in developing countries: Evidence from Africa," Journal of World Business, Elsevier, vol. 52(2), pages 230-243.
    7. Hearn, Bruce & Oxelheim, Lars & Randøy, Trond, 2016. "The Role of Institutions in the Migration of Corporate Governance Practice into Emerging Economies – The Case of Africa," Working Paper Series 1122, Research Institute of Industrial Economics.
    8. Samara, Georges, 2021. "Family businesses in the Arab Middle East: What do we know and where should we go?," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    9. Berger, Ron & Silbiger, Avi & Herstein, Ram & Barnes, Bradley R., 2015. "Analyzing business-to-business relationships in an Arab context," Journal of World Business, Elsevier, vol. 50(3), pages 454-464.
    10. Grzegorz Ignatowski & Łukasz Sułkowski & Bartłomiej Stopczyński, 2021. "Risk of Increased Acceptance for Organizational Nepotism and Cronyism during the COVID-19 Pandemic," Risks, MDPI, vol. 9(4), pages 1-35, March.
    11. Alisa Sydow & Benedetto Lorenzo Cannatelli & Alessandro Giudici & Mario Molteni, 2022. "Entrepreneurial Workaround Practices in Severe Institutional Voids: Evidence From Kenya," Entrepreneurship Theory and Practice, , vol. 46(2), pages 331-367, March.
    12. Ayman Issa & Mohammad A. A. Zaid & Jalal Rajeh Hanaysha, 2022. "Exploring the relationship between female director's profile and sustainability performance: Evidence from the Middle East," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1980-2002, September.
    13. Silviya Dimitrova, 2017. "Ethical Issues in Multinational Companies' Business," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, issue 1, pages 224-236, November.
    14. Jamali, Dima & Jain, Tanusree & Samara, Georges & Zoghbi, Edwina, 2020. "How institutions affect CSR practices in the Middle East and North Africa: A critical review," Journal of World Business, Elsevier, vol. 55(5).
    15. Sarah Hudson & Helena V. González-Gómez & Cyrlene Claasen, 2022. "Societal Inequality, Corruption and Relation-Based Inequality in Organizations," Journal of Business Ethics, Springer, vol. 181(3), pages 789-809, December.
    16. Hearn, Bruce & Filatotchev, Igor, 2019. "Founder retention as CEO at IPO in emerging economies: The role of private equity owners and national institutions," Journal of Business Venturing, Elsevier, vol. 34(3), pages 418-438.
    17. Guillermo Wated & Juan Sanchez, 2015. "Managerial Tolerance of Nepotism: The Effects of Individualism–Collectivism in a Latin American Context," Journal of Business Ethics, Springer, vol. 130(1), pages 45-57, August.
    18. Ibrahim A. Elsaher, 2024. "WASTA in Arab Societies: Optimizing or Worsening Quality of Life? The Role of Religiosity," Societies, MDPI, vol. 14(7), pages 1-16, June.
    19. Naeem A. Albihany & Abdullah M. Aljarodi, 2024. "The role of personal connections Wasta on early-stage entrepreneurial orientations: empirical evidence from Saudi Arabia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    20. Shahzad Virk, Nader & Nawaz, Tasawar & Molyneux, Philip, 2022. "A canary in a Coalmine! religious agency and its impact on the performance of Islamic banks," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 78(C).

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