Abstract

This research aims to examine the impacts of the Wasta (Arabic word for Nepotism) on intrapreneurship practices in the three Jordanian telecommunication companies (Zain, Orange and Uminah).

The influence of Nepotism and its impacts on organisational intrapreneurial practice in the Jordanian telecommunication sector is under-researched. This research study looks at addressing this gap in knowledge by providing empirical evidence and evaluating mechanisms within these companies about the practice of Wasta on intrapreneurship among employees and other relevant stakeholders like business partners. A Mixed (Both Quantitative and Qualitative) research approach using survey Questionnaire and open-ended questions methods is proposed. This survey questionnaire and open-ended instruments will be set up with employees of the three companies. Expected outcomes from the study include addressing the information and knowledge builing about organisational and cultural dimensions that curtail maximum utilisation of human capital assets through internal intrapreneurial suggestions and the presence of Wasta practices. Additionally, the research seeks to develop both theoretical and practical research contribution to the other sectors.

Table of Contents

Rationale for the research 4

Purpose of the study 5

Hofstede's cultural dimensions 11

Globe cultural dimensions 13

Organisational culture in MENA and Jordan 21

Research Methodology 23

Contingency plan 29

Research Limitations 30

References 35

Appendices 43

Intrapreneurship: Intrapreneurship is the practice of the entrepreneurial mindset where an employee under the supervision of an organisation focuses on the innovative ideas and intentions which could be economically measurable and have the sustainable plans which are associated with the potential risks (Drucker, 2014, p.43).

Nepotism: Nepotism is a practice of favouring relatives or closely related individuals in the distribution of responsibilities or jobs over the general selection (Jaskiewicz et al., 2013, p.123).

The rationale for the researchThere is a limited empirical and qualitative research that has been undertaken in Jordan concerning intrapreneurship and in the telecommunication sector. Additionally, the effect of nepotistic practises and the consequences of such actions on intrapreneurship, innovation and organisational culture remain largely unexplored. Janssen et al., (2019) undertook a systematic literature evaluation of conference papers for the preceding decade on the adoption and diffusion of intrapreneurial efforts in the telecommunications sector across the world and determined that there is limited research on the subject. Their research established that the expected number of intrapreneurial projects and initiatives have not been seen in the preceding decade because of lower involvement of creative minds in the decision-making process. However, their research work has been found as limited to the context of nepotism impacts because they have indicated different variables such as budget, Halo effect, Confirmation bias along with Nepotism which has concentrated less focus on nepotism.

Due to the government restriction in the time of the global pandemic of Covid-19, the government-led development projects of the 5G in the telecom sector have been postponed and delayed in 2020 (Rosbo, 2020). The companies such as Zain, Orange and Uminah are experiencing the difficulties in the adequate workplace management and overall workflows have been disrupted in this critical time (Budde, 2020). Additional competitiveness was introduced into the telecom markets in Jordan, in 2019, when Umniah and JEPCO (Jordan Electric Power Company) merged to reach a wider customers base with their provision of accelerated bandwidth and enhanced fibre-broadband network (Rosbo, 2020). In this case, to be highly competitive in the Telecommunication Industry Sector, the use and motivations regarding the corporate initiatives to discover efficient and effective ideas for workplace and management are needed with the practice of intrapreneurship.

The governmental intention in Jordan has been concentrated on the introduction of the country’s own (intrapreneurial at the national level) sustainable research and development projects in the telecom sector to reach the entire country (Kenresearch, 2020). Drobyazko et al., (2019, p.5) point out that these intentions have not been achieved or been delayed as a result of the lack of creative idea generation and efficient installation of 5G networks. This nature of delays could be emerged due to the presence of Wasta culture and nepotism in the managerial selection is prioritising relatives over talents and creative minds which has been cited as ‘‘Members of staff may be locked out of promotions and pay increments in favour of the boss’s favourite and this demotivates them’’ (Ombanda, 2018, p.479).

Theoretical Framework In this section, theories on the nepotism, cultural dimensions and intrapreneurial models linked to the research topic are described.

Reciprocal Nepotism

Jaskiewicz et al. (2013, p.123-124) defined that Reciprocal Nepotism which indicates the obligation of the prior family or relative structure of the culture where a company or business must create the position or recruit the family or relative members in the business or firm to uphold and maintain the cultural and traditional obligations. According to Sidani & Thornberry, (2013) as a Middle East country, the emergence and presence of the Wasta and nepotism practices are found in the business structure in Jordanian companies. Based on the claim of this research, the theoretical argument of Jung, (1990) could be addressed and linked where there has a family or cultural obligation regarding the nepotism in the placement of family or relative members in the business position. As a result, the bound or business obligations of practising or involving the recruited family members in the intrapreneurship are not perfectly achieved and performed. This research is connected to the same argument where the researcher will be aimed to examine the impacts on the intrapreneurship in the Jordanian telecommunication sector.

Hofstede (2003) defined that uncertainty avoidance refers to the degree of the tendency of a group of people regarding the unpredictability and facing the uncertain situation as a result of actions taken in the cultural. Under this dimension, Mazanec et al. (2015) asserted that uncertain situation or unpredictable situation might generate inner mental discrepancies regarding the intention for taking the responsibility for practising as a successful intrapreneur in the organisation which might work or be responsible as an emerging inhibitor in the process of intrapreneurship in any particular organisation. Considering the scenario of Jordanian society in uncertainty avoidance. Hofstede Insights (2020) has shown that the culture of Jordan has an intermediate score of 65 which indicates a higher rate of concern regarding the avoidance of uncertainty. This theory could be linked to the research topic because the researcher has underpinned the question regarding the intention of avoiding uncertainty works as a major inhibitor of Intrapreneurship practice in three Jordanian telecommunication companies.

Power distance

Globe cultural dimensionsAssertiveness

According to House et al. (1999), assertiveness could be used to indicate the people’s orientation regarding the relationship with others in the society or the organisation with positive and aggressive extent. This research has indicated that in the organisational context, a group of people could impose or show a comfort zone for their kind or favoured group in the communication. On the other hand, a higher extent of aggressive behaviour is shown to a specific group of people who are favoured and relative. In this regard, this theoretical grounding is relevant to the research topic and area, because in the practice of Wasta, Tung & Verbeke (2010) added that a group of people are behaved with the aggressive pattern for not taking part in the idea sharing and showing good intrapreneurial practice. Hofstede (2011) indicated that countries in the middle east region of the world including Jordan and Saudi Arabia have a common relationship with the assertiveness factor as the favoured group in the family-owned business are getting comfort zone in the interaction when other executives who have been recruited from the market are getting aggressive behavioural approach.

House et al. (1999) defined the performance orientation could be used as a successive degree of measurement regarding what extent an organisation or society is motivating and rewarding the person who is focused to the innovation and creativity. In this research, the claim has been asserted that when the organisation or society is performance-oriented and motivate the employees who are trying to share the idea and creativity in the organisation, the employees might introduce new and potential research-based business portfolio for the future business success. According to Katigbak et al. (2002), the countries in the middle east region of the world are highly concentrated on the people and relationship with the persons in the family and organisation. As a result, the performance of the employees or the contribution of the idea and intrapreneurial activities are not highly motivated and highlighted by the organisation. this theoretical basement is related to the research because performance-oriented society could support the intrapreneurship over the Wasta practice.

In the following the effects of Guanxi (Nepotism) in the Chinese culture has been underpinned to show how the organisational behaviours including motivation and intrapreneurship are impacted by the Nepotism.

Intrapreneurial modelsEnabler model

Wolcott & Lippitz (2007) mentioned that in a corporate environment, the organisation or responsible higher authority might represent them as the enabler of the intrapreneurship where they produce and motivate the employees to share their ideas by presenting them the scopes of idea proposal, documents for funding and claiming active support from the organisation. They added that there could be no direct and formal ownership of the employees in the organisation for intrapreneurial practice. This model could be relevant to this research because the organisation such as three Jordanian telecommunication companies have been taken which could be represented as in the enabler role and the researcher has developed the questions to examine the impacts of nepotism on the intrapreneurship in that companies.

Sinha & Srivastava, (2013) asserted that Intrapreneurs are highly innovative because they can provide innovatively and nurture ideas, they create a growth-driven culture in an organisation, demonstrate the attitude of confidence and humility, self-starters and problem solvers. Kafile, (2018) mentioned that Intrapreneurs, like entrepreneurs, are creative people who want the freedom to pursue their dreams and expect support for their ideas including investment in the ideas. This research added that intrapreneurs want to be independent and want to be protected. Luu, (2020) supported this mention by adding that Failures should be allowed in this environment, resources, new technologies and appropriate systems made available along with a willingness to support and receive these new ideas by top management.

Impacts of Wasta in intrapreneurshipVelez‐Calle et al., (2015) the practice and encouragement of Wasta or nepotism could be destructive to the overall business sustainability and survivability. This research found that if the ineligible person or family members hold the respective and critical managerial position in a business organisation, the critical decision of the business performance and operational issues could be affected by the question of less or no experiences and lower level of talents or less business-driven mind-sets. This research concluded that when the Wasta practises are emerged in the critical position, even a single wrong footstep might generate the destructive business results which might destroy the business sustainability.

The successive research result of Mazanec et al. (2015) indicated that the emergence and higher concern of the uncertain avoidance which denotes the concern for not taking the risks have incorporated an organisational culture in the MENA region. Gianiodis et al. (2016) defined that the presence and concentration towards the power distance and its impacts on the organisation mostly in the middle east countries created an organisational environment where the employees of higher power group are gaining the lucrative roles and getting the unfair benefits over others. Hofstede Insights (2020) found a low score of 16 in the Jordanian culture in their research which demonstrates the presence of normative culture which focus on the traditional background in the decision-making process. According to House et al. (1999), the assertiveness trait of the employees in the organisation creates both higher and lower assertiveness for the specific group of people in the organisation. This research outlined that a higher assertiveness trait with the kind behaviour and kinship has been recognized in the MENA region where a group of people are getting unfair supports over others. The comparative analysis of the Tung & Verbeke (2010) has structured the importance of concentrating on the both human and performance orientation in the organisation where the human orientation is highly focused in the MENA region to present and highlight the relationship of the human rather their performance in the organisation. On the other hand, the performance orientation is motivated with a lower extent to address the successful task accomplishment and progress of the corporate performance.

H2: There is a positive correlation between Wasta and Relationship in the family.

H3: There is a positive relationship between Wasta and Friendship

Sampling and data collection methodsAs a part of quantitative research and data collection, the researcher will produce a single questionnaire (See Appendix A) with the constructed questions to collect the quantitative data from the respondents. Here, the researcher will adapt the questionnaire used in the previous literature on the common research area of the research topic. The reason behind such selection is that it will save a lot of time and implement the acceptability and approval of the survey questionnaire of the existing literature. In this case, about 60 employees (20 from each company) will be asked to answer the question based on the random sampling method.

Data collection process in the quantitative research methods will help the researcher to draw a relationship between the independent variables which would include Relationship, Friendship, Political connections, Tribe/race importance, Presence of Kinship, Political connections (Ombanda, 2018). Here, the researcher is intending to classify the dependent variables which might include creativity, the intention of sharing ideas and involvement in the decision-making process in the three telecommunication companies (Al-Twal & Aladwan, 2020).

Contingency planBased on the unfortunate environment regarding the quantitative research method, the researcher would be aimed to follow three contingency plans.

Contingency Plan 1: The researcher would change the methodology plan into the qualitative research method which could include two companies instead of all three telecommunication companies with the case study comparison.

Research LimitationsThe limitations of this proposed research include the triple constraints of time, cost, and resources.

Time: One of the potential limitations of this research is time and length because the research is targeting to complete this research within 3 years. Additional time constraints include the need to work to support the researcher

Covid-19: Due to COVID-19 pandemic which has been recommended that people to keep social distance also proves to be a barrier to get responses freely and detailed from the participant. Considering the importance of keeping the social distance, all activities and research works will be limited to the home and online domains.

The researcher will put into consideration these limitations while discussing and making conclusions on the research and recommendations for further research.

The telecommunication companies in Jordan operate in a highly competitive environment whereby the customers’ preferences and the taste are a subject of change and technology also is ever-changing. These changes are meant to test the preparedness of an organisation to act entrepreneurially. This study is successively expecting to provide a due recommendation to use and implement the intrapreneurship practice in the organisation with the promotion of individual talents, rewards and industry promotion for the emerging ideas. As a result, Companies are recommended to provide an environment that allows the employees to generate new ideas.

ReferencesAbu-Samaha, A.M. and Mansi, I., (2007), June. Information Technology Diffusion in the Jordanian Telecom Industry. In IFIP International Working Conference on Organisational Dynamics of Technology-Based Innovation (pp. 431-442). Springer, Boston, MA.

Altindag, E., (2014). Evaluation of nepotism as accelerating effect on employee performance: An empirical study in Turkey.

Al-Twal, A. and Aladwan, K., (2020). Graduating students’ standpoints on Wasta as a ‘gateway’to employment: motives and influences. International Journal of Organisational Analysis.

Bigliardi, B., Dormio, A.I. and Galati, F., (2012). The adoption of open innovation within the telecommunication industry. European Journal of Innovation Management.

Budde, (2020). Jordan - Telecoms, Mobile And Broadband - Statistics And Analyses - Buddecomm. [online] Budde.com.au. Available at: <https://www.budde.com.au/Research/Jordan-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses> [Accessed 7 December 2020].

Daskin, M., (2013). Favouritism and self-efficacy as antecedents on managers' politics perceptions and job stress. Anatolia, 24(3), pp.452-467.

Davies, M.B. and Hughes, N., (2014). Doing a successful research project: Using qualitative or quantitative methods. Macmillan International Higher Education.

Farrukh, M., Ying, C.W. and Mansori, S., (2016). Intrapreneurial behaviour: an empirical investigation of personality traits. Management & Marketing. Challenges for the Knowledge Society, 11(4), pp.597-609.

Ghauri, P., Grønhaug, K. and Strange, R., (2020). Research methods in business studies. Cambridge University Press.

Hofstede, G., (2003). Cultural dimensions. www. geert-hofstede. com, consulta, 13.

Hofstede, G., (2011). Dimensionalizing cultures: The Hofstede model in context. Online readings in psychology and culture, 2(1), pp.2307-0919.

Hutchings, K. and Weir, D., (2006). Guanxi and wasta: A comparison. Thunderbird International Business Review, 48(1), pp.141-156.

Jackson, D., Tobin, S. and Eggert, J.P., (2019). Capacity building for politicians in contexts of systemic corruption: Countering ‘wasta’in Jordan. U-4 Anti-Corruption Resource Centre.

Kenresearch, (2020). Jordan Telecoms Mobile And Broadband Market Outlook, Jordan Telecoms Mobile And Broadband Market Revenue, Jordan Telecoms Mobile And Broadband Market Share - Ken Research. [online] Kenresearch.com. Available at: <https://www.kenresearch.com/press/jordan-telecoms-mobile-and-broadband-market/3164.html> [Accessed 21 October 2020].

Liu, C., Eubanks, D.L. and Chater, N., (2015). The weakness of strong ties: Sampling bias, social ties, and nepotism in family business succession. The Leadership Quarterly, 26(3), pp.419-435.

Morgan, T., Anokhin, S. and Wincent, J., (2016). Entrepreneurial orientation, firm market power and opportunism in networks. Journal of Business & Industrial Marketing.

Muijs, D., (2010). Doing quantitative research in education with SPSS. Sage.

Paradis, E., O'Brien, B., Nimmon, L., Bandiera, G. and Martimianakis, M.A., (2016). Design: selection of data collection methods. Journal of graduate medical education, 8(2), pp.263-264.

Parker, S.C., (2018). The economics of entrepreneurship. Cambridge University Press.

Schulze, W. S., Lubatkin, M. H., & Dino, R. N., (2003). Toward a theory of agency and altruism in family firms. Journal of Business Venturing, 18, 473-490.

Sidani, Y.M. and Thornberry, J., (2013). Nepotism in the Arab world: An institutional theory perspective. Business Ethics Quarterly, 23(1), pp.69-96.

Sutherland, E., (2012). Corruption in telecommunications: problems and remedies. info.

Sutherland, E., (2013). Bribery and Corruption in Telecommunications: Death, Defamation, and Dogma. Defamation, and Dogma (October 7, 2013).

Van De Voorde, K., Paauwe, J. and Van Veldhoven, M., (2012). Employee well‐being and the HRM–organisational performance relationship: a review of quantitative studies. International Journal of Management Reviews, 14(4), pp.391-407.

Vanhanen, T., (2014). Ethnic nepotism as a cross-cultural background factor of ethnic conflicts. Open Journal of Political Science, 2014.

World Bank, (2020). MENA Countries Urged To Do More In Investing In Their Human Capital. [online] /www.worldbank.org. Available at: <https://www.worldbank.org/en/news/press-release/2020/09/16/mena-countries-urged-to-do-more-in-investing-in-their-human-capital> [Accessed 21 October 2020].

Zgheib, P.W. ed., (2017). Entrepreneurship and Business Innovation in the Middle East. IGI Global.

The project plan is detailed to show dependencies in the Gantt chart below;