Guanxi and Wasta: A comparison

Abstract

China has a business culture based on strong family connections secured in guanxi networks, while the Arab World's is based on strong family connections secured in wasta networks. This article compares guanxi, wasta, and the role of trust, family, and favors in underpinning these traditional modes of interpersonal connections and networks and considers the continued relevance of these practices as these regions of the world internationalize and modernize. The article provides insights for Western managers in their subsidiary operations in China and the Arab World. © 2006 Wiley Periodicals, Inc.