PART 3 – THE IMPORTANCE OF PERSONAL RELATIONSHIP IN THE MIDDLE EAST AND IN ASIAN CULTURES
As I explained in Parts 1 and 2, recent neurological studies all emphasize the vital role played by in-person interaction to build trust and empathy, including in business partnerships. This is due to the importance of nonverbal cues in interpersonal communication and of social norms in the dynamic of human groups.
Indeed, since cooperation provided an evolutionary advantage to our species allowing it to thrive, neurological processes related to mirror neurons and oxytocin, which encourage interpersonal relationships through trust and bonding, have been naturally selected.
This is so deeply rooted in our genome that face-to-face interactions still remain essential in business relations, despite the recent boom of digital communication technologies which pretend to replace them.
Now, as universal and central as personal relationships may be to all human beings, it is important to emphasize that this biological common trait has given way to a wide diversity of social norms, illustrating the richness of human cultures across the world.
Failing to take into consideration the differences in the expressions of the same natural human instincts when you enter a new market, can lead you to commit faux pas which could negatively affect your business.
This is why it is important to use the services of local experts who can guide you through the intricacies of local social norms before you come to meet your potential partners.
Here are a few different examples of local cultural aspects showing the importance of interpersonal relationships.
In Saudi Arabia, the concept of “wasta” holds significant cultural relevance. A prevalent concept in the Arab world, it refers to the use of connections and personal relationships to gain advantages in business and other spheres. While wasta can facilitate smoother transactions and access to resources, it also raises concerns about fairness and transparency. In recent years, wasta has evolved from resolving tribal conflicts to acquiring economic benefits.
For instance, individuals may use wasta to secure meetings with influential business leaders or to gain access to exclusive business circles. In addition, a well-connected individual might leverage wasta to speed up bureaucratic processes or secure lucrative contracts. Finally, wasta may also impact employment and income, since it often offers access to job opportunities and better paid positions for people with strong connections over more qualified candidates.
Fortunately, since the launch of the Saudi Vision 2030, as mentioned by Dr. Reem Daffa, “the recent Kingdom’s zero-tolerance policy toward corruption implemented under Crown Prince Mohammed bin Salman is now transforming the country’s economy into a meritocracy that rewards effort, ability and skill”. So, while connections continue to be useful for business, of course, like in any other part of the world, they come second after other considerations, like quality, added value, sustainability, and so on.
Now, cultural norms and social hierarchies still heavily influence business interactions in Saudi Arabia, where personal relationships are valued as a means of establishing trust and loyalty, and remain essential in navigating complex social structures and bureaucratic systems.
In Chinese culture, the concept of “guanxi” bears similarities to wasta. This complicated item refers to personalized networks of influence and reciprocal relationships. These connections are built on trust, loyalty, and mutual obligations, extending beyond business into various aspects of life. It involves interpersonal connections implying a continued exchange of favours.
It is different from the concept of business network in Western cultures in that it is completely personal and is long-term oriented. As the relationship is personal, it means that the connection needs to be reestablished when the employee leaves the company. Because of this, the level of obligation between the persons involved is much higher than in business relations in Western countries, which are more impersonal.
For example, when KFC opened its largest chain store in Beijing, in 1987, its good Guanxi with Chinese central government helped them to get the building permission. It is also sometimes mentioned that the success of Sony in China is based on its harmonious internal relationships, that is” good Guanxi” between people working in the company.
On the other hand, Guanxi can also lead to corruption, like in the case of Diagnostic Products Corporation, a California-based manufacturer of medical equipment, which was fined and required to deliver all the profit generated by its Chinese subsidiary, because the latter had paid bribes to some Chinese doctors and hospital administrators.
It is important to know that the concept of Guanxi has greatly influenced many cultures in Southeast Asian countries, like Thailand, Singapore, Malaysia and Vietnam, because of the long history of Chinese migrations and mixing of populations, as well as of the cultural influence of China on these societies over the past centuries. In Vietnam, for example, society places a strong emphasis on familial ties and Confucian values, including respect to elders and adhering to hierarchical protocols for building trust and credibility, which shape business interactions.
As I have explained, we have been programmed by evolution to prioritize in-person and face-to-face relationships over digital and remote ones, which explains cultural concepts like Wasta and Guanxi.
Yet, it is also important to note that the importance of interpersonal relationships, their range, their expression, can vary widely from one culture to another. Therefore, it is vital that you demonstrate cultural sensitivity when you develop your activities in a new market, and that you study its specificities before drafting your strategy or visit the country to organise meetings.
Nevertheless, as a rule of thumb, it is safe to say that building local personal relationships and adapting your business practices to local nuances can only be positive for your international expansion. The important thing is to do that properly, but understanding hierarchies between cultural concepts and practices, and also hierarchies between people, in order for you to build the best and most useful possible network.
To do that, it is highly recommended to use the services of partners who not only understand the local culture and possess local connections, but who also understand your own background, your objectives, and what is important to you, in order to help you build solid bridges for your international expansion. And, most importantly, you need to find partners who have a long-term commitment to support you on the ground since, as I have shown, personal relationships are meant to be build and fostered on the long-term.
Don’t hesitate to contact Artemis Business Care to benefit from our business networks and our knowledge of the local business culture, to develop your activities in Saudi Arabia.